Business Case for CoreValue

The Value Gap is a CEO’s ROI for engaging a Business Advisor. You can help with analysis, reporting, planning and tactical execution.

Business Advisory firms are now pursuing several strategic initiatives:

  1. Operational Analysis, including a report for clients that links their operational strength to growth and shareholder value;
  2. Strategic Planning, helping client companies define and achieve their goals;
  3. Equity and Succession Planning
  4. Business Model, Business Plan Audits
  5. Adding/Expanding Valuation Services
  6. Business Development: expanding services, client acquisition, CEO workshops

Professional services firms are moving from an hourly model to a value model. Many of our customers are making the same strategic shift in their business model. What matters:

  • Quality Assurance: by implementing a standard business consulting methodology and deploying compliance-approved reports, every client will receive the same high value.
  • Traction and success depends heavily on demonstrating client ROI --client should see/be shown a ≥10X return on advisory project fees. The Value Gap communicates the growth your services are delivering.

Firm growth benefits from CoreValue technology and training in several ways:

  1. The Discover initial assessment of company strength and value can be used with all existing corporate clients as a free executive summary service. This starts the business consulting conversation to win Valuation, Equity and Succession Planning, Strategic and Growth Planning, and long-term growth advisory engagements. This same technology has a module used in CEO workshops with terrific results converting leads to opportunities.
  2. Valuations: adding the CoreValue Operational Value Report differentiates your valuations from the competition by including actionable analyses and recommendations. These reports generate the data needed for writing compelling ‘value growth service’ proposals.

3. Strategic Planning: the technology and training are specifically designed for auditing or creating strategic plans to reach corporate goals --including increasing revenue and margin and shareholder value

4. Equity and Succession Planning: data shows that

83% of equity and succession planning clients need to grow shareholder value in order to meet ownership’s personal wealth goals.
Only 12% of companies secure LOIs for sale, and only 20% of LOIs survive the first pass at due diligence: that’s a 97.6% failure rate. Do you need to offer a service that helps your clients prepare for successful M&A at the top of the range of values, and change illiquid value into AUM?
The Executable Growth Plan helps clients transform their company into a valuable, marketable asset.

5. Business Development: Your entire team can participate in marketing and sales training, and specifically use CoreValue Discover and Discover Marketing Workshops to connect your firm’s services to quantified client needs.

Our customers serving middle market companies report fees in the following ranges:

$0 for the Discover initial assessment of company strength and value --this identifies engagement opportunities (and delivers a branded report to clients).
$4,500-$10,000: Deep-Dive Analysis, and delivering the client’s Operational Strength and Value Report (including preliminary recommendations on increasing revenues and shareholder value).
$5,000-$15,000: Equity and Succession Planning using the Deep-Dive Analysis and Executable Growth Plan.
$5,000-$50,000: Strategic Planning, which you build using the Operational Strength and Value Report and the Executable Growth Plan.
$5,000-$25,000: Business Plan (audit or create) using the Operational Strength and Value Report and the Executable Growth Plan.
$3,000-$5,000/month retainers for being the peer to the CEO, the General Contractor managing deployment of the Strategic Plan --Grow Value (1) in advance of M&A, or (2) other client company goal e.g. increase revenues by X% by Y date.

The catalysts for adding these services and building a thriving consulting practice are Technology and Training.

Your ROI: the average firm experiences a return of investment at 2 client engagements.