1. What is Value?
by R. Thomas Stocker
Value means different things to different public companies. They have a board of
business owners. If you ask an owner just directors and/or a board of advisors, a clear
starting up their business the answer may be succession plan, easily understood structure
revenue growth or available cash. Ask and documented processes. All of these
another who has gotten past the startup things reduce risk and provide superior
phase and it may be cash and/or profit, and enterprise value.
ask a stockholder of a public company and it
Risk is an important factor to consider when
will probably be profit. They are all correct
you think about enterprise value. All
of course, but the real value in any non-
valuation experts use a risk factor to
public company isn’t just growth, profit and
determine a company’s value. As the owner
cash. It is much more.
and/or CEO of your company, part of your
Value is not a here and now measure of how job and obligation to your owners is to
much cash the company has available or the minimize risk as much as possible. Making
profit it made last quarter. It is a long-term sure your company has adequate business
metric that is measurable and changeable. It systems, processes and structure will go a
is the most important measure of any long way toward minimizing internal risk.
company, private or public. It is a measure This is a topic in itself which I will address
of sustainability and transferability. in a future blog.
Ultimately it is how much your company
At Chairman’s View we have two
can sell for on the open market. At any
presentations we call “The Story of Value”
given time, what would someone be willing
and “Building an “A”. In both cases we talk
to pay for the enterprise as it exists today.
about the meaning of value for private
You should be aware of this value whether
companies and concentrate heavily on how
or not you are planning to sell or transfer
important sustainability and transferability
your business today, tomorrow or twenty
are to building a valuable company.
years from now. Because it is so important
to you, your strategies must start with how
Sustainability is a very important concept
to increase this value.
for making a valuable company. Outside
investors won’t pay much for a company if
For a private company, real value is
they can’t see or understand how an
sustainable and transferable profitability.
enterprise can continue to grow revenue and
For public companies, sustainable and
profitability. Likewise, they need to feel
transferable are given as the enterprise is
comfortable the business can survive
generally transparent and value is reflected
without you the owner/CEO. If you are the
in real time through the enterprise’s stock
“octopus” (see my article “Are You an
price. Private companies do not always see
Octopus?”), haven’t done anything to groom
value in this light but should consider and
a competent management team, all processes
understand the implications of avoiding or
are in peoples’ heads or are “custom” for
ignoring these two key factors. The most
each transaction or action; you don’t have a
valuable private companies generally
transferable business and are at risk of not
conduct themselves in the same manner as
10 Larkspur Road, East Greenwich, RI 02818 401-451-9799 www.boardroomadvisorygroup.com
3. Metrics Should Be Everywhere (Part II) It’s All About Growth
These articles can be accessed at www.boardroomadvisorygroup.com/pages/pubs.php. You can also request to be added to his email list to
receive his latest articles on a monthly basis on the Company website. Contact Tom at tstocker@boardroomadvisorygroup.com.
4. What is Value?
by R. Thomas Stocker
Value means different things to different public companies. They have a board of
business owners. If you ask an owner just directors and/or a board of advisors, a clear
starting up their business the answer may be succession plan, easily understood structure
revenue growth or available cash. Ask and documented processes. All of these
another who has gotten past the startup things reduce risk and provide superior
phase and it may be cash and/or profit, and enterprise value.
ask a stockholder of a public company and it
Risk is an important factor to consider when
will probably be profit. They are all correct
you think about enterprise value. All
of course, but the real value in any non-
valuation experts use a risk factor to
public company isn’t just growth, profit and
determine a company’s value. As the owner
cash. It is much more.
and/or CEO of your company, part of your
Value is not a here and now measure of how job and obligation to your owners is to
much cash the company has available or the minimize risk as much as possible. Making
profit it made last quarter. It is a long-term sure your company has adequate business
metric that is measurable and changeable. It systems, processes and structure will go a
is the most important measure of any long way toward minimizing internal risk.
company, private or public. It is a measure This is a topic in itself which I will address
of sustainability and transferability. in a future blog.
Ultimately it is how much your company
At Chairman’s View we have two
can sell for on the open market. At any
presentations we call “The Story of Value”
given time, what would someone be willing
and “Building an “A”. In both cases we talk
to pay for the enterprise as it exists today.
about the meaning of value for private
You should be aware of this value whether
companies and concentrate heavily on how
or not you are planning to sell or transfer
important sustainability and transferability
your business today, tomorrow or twenty
are to building a valuable company.
years from now. Because it is so important
to you, your strategies must start with how
Sustainability is a very important concept
to increase this value.
for making a valuable company. Outside
investors won’t pay much for a company if
For a private company, real value is
they can’t see or understand how an
sustainable and transferable profitability.
enterprise can continue to grow revenue and
For public companies, sustainable and
profitability. Likewise, they need to feel
transferable are given as the enterprise is
comfortable the business can survive
generally transparent and value is reflected
without you the owner/CEO. If you are the
in real time through the enterprise’s stock
“octopus” (see my article “Are You an
price. Private companies do not always see
Octopus?”), haven’t done anything to groom
value in this light but should consider and
a competent management team, all processes
understand the implications of avoiding or
are in peoples’ heads or are “custom” for
ignoring these two key factors. The most
each transaction or action; you don’t have a
valuable private companies generally
transferable business and are at risk of not
conduct themselves in the same manner as
10 Larkspur Road, East Greenwich, RI 02818 401-451-9799 www.boardroomadvisorygroup.com
6. Metrics Should Be Everywhere (Part II) It’s All About Growth
These articles can be accessed at www.boardroomadvisorygroup.com/pages/pubs.php. You can also request to be added to his email list to
receive his latest articles on a monthly basis on the Company website. Contact Tom at tstocker@boardroomadvisorygroup.com.
7. What is Value?
by R. Thomas Stocker
Value means different things to different public companies. They have a board of
business owners. If you ask an owner just directors and/or a board of advisors, a clear
starting up their business the answer may be succession plan, easily understood structure
revenue growth or available cash. Ask and documented processes. All of these
another who has gotten past the startup things reduce risk and provide superior
phase and it may be cash and/or profit, and enterprise value.
ask a stockholder of a public company and it
Risk is an important factor to consider when
will probably be profit. They are all correct
you think about enterprise value. All
of course, but the real value in any non-
valuation experts use a risk factor to
public company isn’t just growth, profit and
determine a company’s value. As the owner
cash. It is much more.
and/or CEO of your company, part of your
Value is not a here and now measure of how job and obligation to your owners is to
much cash the company has available or the minimize risk as much as possible. Making
profit it made last quarter. It is a long-term sure your company has adequate business
metric that is measurable and changeable. It systems, processes and structure will go a
is the most important measure of any long way toward minimizing internal risk.
company, private or public. It is a measure This is a topic in itself which I will address
of sustainability and transferability. in a future blog.
Ultimately it is how much your company
At Chairman’s View we have two
can sell for on the open market. At any
presentations we call “The Story of Value”
given time, what would someone be willing
and “Building an “A”. In both cases we talk
to pay for the enterprise as it exists today.
about the meaning of value for private
You should be aware of this value whether
companies and concentrate heavily on how
or not you are planning to sell or transfer
important sustainability and transferability
your business today, tomorrow or twenty
are to building a valuable company.
years from now. Because it is so important
to you, your strategies must start with how
Sustainability is a very important concept
to increase this value.
for making a valuable company. Outside
investors won’t pay much for a company if
For a private company, real value is
they can’t see or understand how an
sustainable and transferable profitability.
enterprise can continue to grow revenue and
For public companies, sustainable and
profitability. Likewise, they need to feel
transferable are given as the enterprise is
comfortable the business can survive
generally transparent and value is reflected
without you the owner/CEO. If you are the
in real time through the enterprise’s stock
“octopus” (see my article “Are You an
price. Private companies do not always see
Octopus?”), haven’t done anything to groom
value in this light but should consider and
a competent management team, all processes
understand the implications of avoiding or
are in peoples’ heads or are “custom” for
ignoring these two key factors. The most
each transaction or action; you don’t have a
valuable private companies generally
transferable business and are at risk of not
conduct themselves in the same manner as
10 Larkspur Road, East Greenwich, RI 02818 401-451-9799 www.boardroomadvisorygroup.com
9. Metrics Should Be Everywhere (Part II) It’s All About Growth
These articles can be accessed at www.boardroomadvisorygroup.com/pages/pubs.php. You can also request to be added to his email list to
receive his latest articles on a monthly basis on the Company website. Contact Tom at tstocker@boardroomadvisorygroup.com.
10. What is Value?
by R. Thomas Stocker
Value means different things to different public companies. They have a board of
business owners. If you ask an owner just directors and/or a board of advisors, a clear
starting up their business the answer may be succession plan, easily understood structure
revenue growth or available cash. Ask and documented processes. All of these
another who has gotten past the startup things reduce risk and provide superior
phase and it may be cash and/or profit, and enterprise value.
ask a stockholder of a public company and it
Risk is an important factor to consider when
will probably be profit. They are all correct
you think about enterprise value. All
of course, but the real value in any non-
valuation experts use a risk factor to
public company isn’t just growth, profit and
determine a company’s value. As the owner
cash. It is much more.
and/or CEO of your company, part of your
Value is not a here and now measure of how job and obligation to your owners is to
much cash the company has available or the minimize risk as much as possible. Making
profit it made last quarter. It is a long-term sure your company has adequate business
metric that is measurable and changeable. It systems, processes and structure will go a
is the most important measure of any long way toward minimizing internal risk.
company, private or public. It is a measure This is a topic in itself which I will address
of sustainability and transferability. in a future blog.
Ultimately it is how much your company
At Chairman’s View we have two
can sell for on the open market. At any
presentations we call “The Story of Value”
given time, what would someone be willing
and “Building an “A”. In both cases we talk
to pay for the enterprise as it exists today.
about the meaning of value for private
You should be aware of this value whether
companies and concentrate heavily on how
or not you are planning to sell or transfer
important sustainability and transferability
your business today, tomorrow or twenty
are to building a valuable company.
years from now. Because it is so important
to you, your strategies must start with how
Sustainability is a very important concept
to increase this value.
for making a valuable company. Outside
investors won’t pay much for a company if
For a private company, real value is
they can’t see or understand how an
sustainable and transferable profitability.
enterprise can continue to grow revenue and
For public companies, sustainable and
profitability. Likewise, they need to feel
transferable are given as the enterprise is
comfortable the business can survive
generally transparent and value is reflected
without you the owner/CEO. If you are the
in real time through the enterprise’s stock
“octopus” (see my article “Are You an
price. Private companies do not always see
Octopus?”), haven’t done anything to groom
value in this light but should consider and
a competent management team, all processes
understand the implications of avoiding or
are in peoples’ heads or are “custom” for
ignoring these two key factors. The most
each transaction or action; you don’t have a
valuable private companies generally
transferable business and are at risk of not
conduct themselves in the same manner as
10 Larkspur Road, East Greenwich, RI 02818 401-451-9799 www.boardroomadvisorygroup.com
12. Metrics Should Be Everywhere (Part II) It’s All About Growth
These articles can be accessed at www.boardroomadvisorygroup.com/pages/pubs.php. You can also request to be added to his email list to
receive his latest articles on a monthly basis on the Company website. Contact Tom at tstocker@boardroomadvisorygroup.com.
13. What is Value?
by R. Thomas Stocker
Value means different things to different public companies. They have a board of
business owners. If you ask an owner just directors and/or a board of advisors, a clear
starting up their business the answer may be succession plan, easily understood structure
revenue growth or available cash. Ask and documented processes. All of these
another who has gotten past the startup things reduce risk and provide superior
phase and it may be cash and/or profit, and enterprise value.
ask a stockholder of a public company and it
Risk is an important factor to consider when
will probably be profit. They are all correct
you think about enterprise value. All
of course, but the real value in any non-
valuation experts use a risk factor to
public company isn’t just growth, profit and
determine a company’s value. As the owner
cash. It is much more.
and/or CEO of your company, part of your
Value is not a here and now measure of how job and obligation to your owners is to
much cash the company has available or the minimize risk as much as possible. Making
profit it made last quarter. It is a long-term sure your company has adequate business
metric that is measurable and changeable. It systems, processes and structure will go a
is the most important measure of any long way toward minimizing internal risk.
company, private or public. It is a measure This is a topic in itself which I will address
of sustainability and transferability. in a future blog.
Ultimately it is how much your company
At Chairman’s View we have two
can sell for on the open market. At any
presentations we call “The Story of Value”
given time, what would someone be willing
and “Building an “A”. In both cases we talk
to pay for the enterprise as it exists today.
about the meaning of value for private
You should be aware of this value whether
companies and concentrate heavily on how
or not you are planning to sell or transfer
important sustainability and transferability
your business today, tomorrow or twenty
are to building a valuable company.
years from now. Because it is so important
to you, your strategies must start with how
Sustainability is a very important concept
to increase this value.
for making a valuable company. Outside
investors won’t pay much for a company if
For a private company, real value is
they can’t see or understand how an
sustainable and transferable profitability.
enterprise can continue to grow revenue and
For public companies, sustainable and
profitability. Likewise, they need to feel
transferable are given as the enterprise is
comfortable the business can survive
generally transparent and value is reflected
without you the owner/CEO. If you are the
in real time through the enterprise’s stock
“octopus” (see my article “Are You an
price. Private companies do not always see
Octopus?”), haven’t done anything to groom
value in this light but should consider and
a competent management team, all processes
understand the implications of avoiding or
are in peoples’ heads or are “custom” for
ignoring these two key factors. The most
each transaction or action; you don’t have a
valuable private companies generally
transferable business and are at risk of not
conduct themselves in the same manner as
10 Larkspur Road, East Greenwich, RI 02818 401-451-9799 www.boardroomadvisorygroup.com
15. Metrics Should Be Everywhere (Part II) It’s All About Growth
These articles can be accessed at www.boardroomadvisorygroup.com/pages/pubs.php. You can also request to be added to his email list to
receive his latest articles on a monthly basis on the Company website. Contact Tom at tstocker@boardroomadvisorygroup.com.