By Ryan Binkley
After reading Joe Galvin’s recent article on Vistage, ‘4 ways to future-proof your hiring and retention strategy’, I started thinking about how valuable employees are and how they impact the worth of companies. Currently, millions of organizations are struggling to entice excellent candidates.
To get top talent onboard during such a difficult time, more and more firms are choosing to “acqui-hire” – a practice where companies are pursued primarily for the skills and expertise of their employees.
What does this mean for you as a business owner? Strong teams are a valuable commodity that buyers are paying a premium for. If an investor is not convinced by the capabilities of your employees to carry your company forward when you depart, it can limit your chances of securing a premium offer.
To give your business a head start, invest in your managers.
Middle management is one of the most crucial layers in any organization. They are the glue between sweeping high-level strategy and day-to-day operation that allows companies to achieve great things.
Without their expertise bonding every facet of the business together, relationships break down, communication grinds to a halt, and deadlines are missed.
However, the value of good middle management isn’t just crucial to the success of your business today – it’s something that buyers are prepared to pay top dollar for.
Why? Two words. Owner dependency. Simply put, when middle management lacks drive or influence, it falls to the business owner to steer the company from success to success.
While this might work in the short term, the future of the company becomes cloaked in uncertainty when the owner leaves. If they were an indispensable cog in the machine, can it continue to function when they are removed?
Owner-dependent companies are huge red flags for buyers. A company that offers no reassurance that it can operate effectively in the absence of the owner cannot be expected to deliver the returns a new stakeholder will anticipate. Remember, buyers are always acquiring your company’s future – not its past or present.
So, to solidify the value of your business in the short and long-term, it’s crucial you invest in building a strong and capable middle management team. Here are three ways you can enhance your employees’ expertise to assure future investors.
To get the right managers onboard, assemble a long-term hiring plan. By considering the goals you want to achieve and the capital available, you can better understand who the ideal applicant is, and how you can attract them with the resources available.
Approaching talent impulsively in such a competitive market is a recipe for failure. By having a long-term strategy in place, you can be confident in pursuing the skills and expertise needed and convince candidates that you have a vision for their growth in the business.
For more on recruitment techniques and strategies, read these 4 tips for hiring top talent in a tight labor market.
Every company is unique. A manager that may have been exceptional in one business will likely need to adapt to the specificities of your operations.
For this reason, it’s crucial you devote time and resources to training new and existing staff to give them the skills to succeed without your guidance.
To ensure your middle managers are up to the task of carrying your legacy into the future after you step down, it’s vital they are familiar with the inner workings of the entire organization.
You should be able to take time off with confidence, knowing your managers are equipped to keep everything running smoothly in your absence. If you lack the confidence that your company can operate without you at the helm 24/7, then a buyer probably won’t have that confidence either.
If you are concerned owner dependence may compromise the potential of your future exit, here are some helpful ways to reduce your company’s reliance on you.
Our strategists at Generational Consulting Group can help you and your team prep for an optimal exit. Working closely with you and your associates, we evaluate the existing skills and capabilities of your team (and yourself), and what steps can be taken to help your employees improve their performance and become more autonomous in their roles.
This, along with several other proposals within our comprehensive strategic growth plans, can be the key to enhancing the performance and value of your company. This creates an ideal platform to maximize your exit plans.
With decades of successful experience, our talented professionals at Generational Group help you navigate the complex world of M&A, from initial evaluation to final sale.
For more insight on how to achieve an optimal exit, register to attend a complimentary Growth and Exit Planning Conference near you. Or, you can check out more in-depth information in our regularly updated Insights.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Consulting Group’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Consulting Group to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Consulting Group is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.