In this five-part podcast series, we will be hosting exit planning expert Mike Trabert to discuss the five stages of a value maturity cycle that will help position your business for a successful transition. A partner at Skoda Minotti, Mike leads the firm’s Value Acceleration & Exit Planning and Transaction Advisory Services groups. He is a certified valuation analyst and the author of new e-book The 5 Stages of Value Maturity.



Over the next several months, we will cover each of these five stages in a value maturity cycle:



Identify Value

Protect Value

Build Value

Harvest Value

Manage Value



Once you have identified the value of your business, it’s time to move onto stage two of the value maturity cycle – protecting that value. Essentially, this will involve proactively addressing and minimizing existing risk-related issues, and mitigating potential risks for both the near and long term. This process can usually be carried out over a three-month timeframe.



As a business owner, there are three main types of risks to consider – otherwise known as the “three legs of a stool” – business, financial and personal. Ultimately, the goal is to systematically de-risk your business in each of these areas, which will enhance its attractiveness to potential buyers. After all, risk translates directly to value – meaning the riskier a business is, the less a potential buyer will want to pay. Conversely, a business with little to no perceived risk will command a higher premium.



Once these risk-related issues have been identified, business owners will need to consider what proactive steps can be taken to address and mitigate those risks – and how the management team will be involved in the process. Finally, it’s important to bring in an outside expert who can help guide the de-risking of your business.



To learn more, listen to this week’s podcast with exit planning expert Mike Trabert!