Part IV – Building Business Value Series

November 08, 2016

by Linda Colon

Linda ColonIn this blog post, we look at what drives valuation and buyer expectations; which conditions are most often connected to people and processes in a company that can create and bolster business drivers and how you can measure the value of your business.

Recently, CONNSTEP hosted a forum to culminate Manufacturing Month and provide owners and senior leaders of manufacturing companies around the state with insight into what makes a company healthy and valuable and which risk factors impact its value. Based on the high level of engagement of the event attendees, manufacturers are dedicated to growing their own organizations and to remain in Connecticut.

Our featured keynote speaker, Chuck Richards, CEO of CoreValue Software, travelled from his Vermont headquarters to address the impact of market and operational drivers on the value of a business. Knowing many of the attendees were baby boomers nearing retirement age, he challenged them to examine which drivers are responsible for creating their value gap. Focusing on these will increase the value and ensure a successful transfer in the future or, absent of a plan to sell, a path to grow profitably.

State Level Value Gaps

(Left) Connecticut vs. the Nation (Right): On the state level, growth and operations, along with sales and marketing, illustrated the largest gaps requiring the most attention by Connecticut manufacturers. This means that many manufacturers in the state can increase value and success in their companies by focusing on improving these areas of their business.

Following Richards’ presentation, a panel of industry experts, moderated by the CBIA’s Bonnie Stewart, shared their expertise on topics ranging from sources of capital; human resources and demographics trends; business brokerage including purchases, sales and family business issues; market and customer diversification; and business development.

Panel discussion feedback and networking interactions with business owners reinforced that, for the time being, most owners plan to look for ways to increase growth and improve operations at their companies. Attendees posed questions that addressed their struggle with talent acquisition, the importance of non-compete agreements for employees, cyber security, culture shifts and which industry certifications add value to a company.

The net outcome of the Forum was the importance of understanding the key business drivers affecting your company’s current value and its potential value. Knowing the operational strength of your business and which areas are the red flags – detrimental – to its health will aid your growth planning and continued stability.

We will continue to share blog posts with you covering the topics that are critical to today’s manufacturing and business environment including talent, tech, automation and other relevent areas. Information that will arm you with the actionable knowledge to handle future changes while helping you to adjust your mindset to focus on growth and success.

To discover any risks or value gaps in your company, contact us! We’re always here to help.

CONNSTEP solved a huge problem for us and helped us bring our delivery rate to 100%. As a direct result of that, we have been awarded with an increase in business which, ultimately, will also benefit (our supplier) Har-Conn.”

CT manufacturer Pegaasus

Chris DePentima

CEO, Pegasus Manufacturing Inc.

“I see great value in the new experiences and perspectives CONNSTEP brings to our business, at reasonable prices. They’re not like consultants, they’re like partners in the business – willing to roll up their sleeves and help.”

AGRussell logo

Mark Burzynski

President, Arthur G Russell Co

“CONNSTEP has proved to be a tremendous resource for ESI. CONNSTEP has helped us to adapt to today’s marketplace and remain a quality minded, competitive global player. Our ISO/TS16949 implementation process was efficient and rewarding. I look forward to our future projects with CONNSTEP.”

esi CT manufacturer

Ron Delfini

President, Engineering Specialties Inc.

“CONNSTEP worked with FuelCell Energy to educate and facilitate Lean initiatives and to help meet our needs to establish an overall production improvement plan. This plan has been utilized over a period of time as a ‘guiding light’ to spur numerous improvements that dramatically reduced our product cost.”

Tom Lucas

Manager, Fuel Cell Energy

“CONNSTEP is a valuable partner to Hologic, providing the expertise and ‘outside eyes’ everyone needs to keep their continuous improvement on track. We are now well-positioned on a dynamic growth path and look forward to a long-term relationship with CONNSTEP.”

Greg Safarik

VP Manufacturing Operations, Hologic

“Our experience working with CONNSTEP has brought us benefits we never expected. It’s a great team to work with!”

Bruce Wheeler

VP of Operations, Metal Finishing Technologies Inc.

“The goals of the team were to reduce manufacturing lead-time, reduce floor space utilized, and increase worker productivity. All the goals were met. CONNSTEP helped us to better compete.”

Tornik CT manufacturer

Dan Rubbo

General Manager, Tornik LLC

“The Business Growth Program is working well for us. We enhanced our website following the meetings to improve our SEO and become more visible to search engines. The segment on negotiating …  promoted changes in our thinking and improved how we interact with customers. The mentoring between sessions was helpful in boosting our progress.”

CT manufacturer Colonial Spring

Bill Lathrop

President, Colonial Spring Co.

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