By Cheryl Powers

In a notable transaction last year, Darden Restaurants, the entity behind Olive Garden, disclosed its acquisition of Ruth's Chris Steak House for $715 million. This figure pegged the valuation at approximately one times the preceding year's annual revenue, translating to around ten times the adjusted EBITDA for 2022. While impressive for a corporation of its stature, the valuation metrics for Ruth's Chris may have been somewhat constrained by its absence of a recurring revenue ...

By Cheryl Powers

As discussed in Parts 1 and 2 of this series, understanding and leveraging customer capital has become a cornerstone for sustainable growth and competitive advantage. In this article, I delve into the quantitative realm and hope to shed light on the important data and Key Performance Indicators (KPIs) for measuring customer capital.

Understanding Customer Capital

As an owner, customer capital is the bedrock of your company. It includes the total value your business receives...

 By Cheryl Powers

If you’re like many of our business owner clients, your company is not just a source of income; it's your largest and most significant asset. Often, the value of your business comprises the lion's share of your personal net worth. 

Personal net worth represents the difference between an individual's assets and liabilities. For business owners, the equity value of their business often makes up a significant portion of these assets. However, it's not uncommon for owners to misj...

By Cheryl Powers

As a business owner, you already know that the way customers perceive your business can greatly influence their spending decisions. But have you ever considered how a potential investor's or acquirer's first impressions impact their perceived value of your company? This is a critical factor when it comes to raising capital or selling your company, as initial perceptions can affect the equity you'll need to give up for growth and the company's value when selling.

"...SME busi...

By Cheryl Powers

I have never met a CEO or business owner who didn't want to know the fastest and most effective way to grow profits, free up cash flow, and create a winning culture. The best owners know that culture eats strategy for breakfast and without the right strategy, people and processes, the culture will deteriorate and profits will plummet.

Over the years, the owners who were having the most fun while they grew their companies were the ones who were able to view their business growt...