Align and Thrive: The Importance of Organizational Alignment and Agility

Align and Thrive: The Importance of Organizational Alignment and Agility

Introduction: The Need for Alignment in Agile Growth Companies

During a recent conversation with a fellow professional, the topic of organizational alignment arose. For a company to grow and adapt, it must be aligned, with all activities reinforcing its objectives. Alignment begins with the CORE – Core Values, Core Purpose, Core Customer, Brand Promise, and Profit/X, and these elements form the foundation upon which everything else is built.

Building Strategy Around Your Core

Once the CORE is established, you can develop a strategy that includes your Flywheel, BHAG, 3HAG, and 13-Week Sprints. The strategy should be based on the CORE without contradicting any of its elements. With a solid strategy, execution then focuses on achieving the targets set out in the strategy.

The Pitfalls of Misaligned Goals

Many companies set Core Values, a five-year plan, and annual goals but fail to align these with their CORE. This misalignment can result in pursuing revenue at the expense of profitability or prioritizing profit to the detriment of essential investments in people, processes, and equipment. Such scenarios are common in Corporate America and often wrongly attributed to short-termism.

The Power of Alignment and Agility

Alignment and agility are crucial for sustainable growth. When a company is aligned, its activities reinforce its Flywheel, target Core Customers, meet customer needs, deliver products and services efficiently, fulfill the Brand Promise, and achieve the Profit/X goal.

Agility enables an organization to respond effectively to a changing world. In an ever-changing environment, decision-making must be pushed to where the information is. Proper decision-making can only happen when the decision-maker knows the organizational intent (Strategy) and the framework for making that decision (CORES).

Conclusion: Aligning Your Organization for Success

To achieve the growth and success you seek, identify your CORES and develop a strategy accordingly. Ensure that everything in your organization aligns with these CORES, and you will be well on your way to thriving in an ever-changing business landscape.

Copyright (c) Marc A. Borrelli 2023

Recent Posts

The Downfall of Boeing: A Lesson in Core Values

The Downfall of Boeing: A Lesson in Core Values

Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.

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Resolutions, Here We Go Again.

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Understanding and Optimizing Your Cash Conversion Cycle

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Are you killing your firm’s WFH productivity?

Are you killing your firm’s WFH productivity?

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Resolutions, Here We Go Again.

Resolutions, Here We Go Again.

Reflecting on 2021 Resolutions: A Personal Scorecard and Adjustments for 2022

Last year, I shared my New Year’s resolutions and the process I used to create them in a blog post titled “New Year’s Resolutions, Once More Unto the Breach.” I divided my resolutions into three categories: Business, Personal, and Relationships. Upon reflecting on my progress, I scored myself on a scale of 0 to 10 in each area:

  • Business: 5.65
  • Personal: 4.60
  • Relationships: 8.20

While my performance was not perfect, I still made some progress. I realized my long-term goals, or 3HAG, remained mostly unchanged, which meant my resolutions were still relevant for 2022.

Enhancing Resolution Success in 2022

To improve my success rate in 2022, I decided to implement the advice of social psychologist Wendy Wood, who emphasized the importance of tapping into the unconscious mind to facilitate change. Wendy, an expert on habits and the author of “Good Habits, Bad Habits: The Science of Making Positive Changes That Stick,” suggests that resolution success is less about willpower and more about persistence. She advises minimizing friction that prevents achieving goals and increasing friction for actions that hinder success.

Addressing Friction in Failed Resolutions

To illustrate how I applied Wendy’s approach, let’s examine three resolutions I struggled with last year and discuss how I can modify friction to increase the likelihood of success.

Have five coaching clients on annual contracts.

I fell short of this goal, but I did have several clients on shorter-term contracts. I discovered that my mindset was focused on selling annual contracts rather than addressing clients’ immediate needs, which led to positive outcomes and repeat business.

  • Friction to reduce: Shift my mindset from selling annual contracts to addressing clients’ problems.
  • Friction to increase: Develop a questionnaire to identify prospects’ most significant issues before proposing a solution or relationship.

Practice yoga three times a week.

I only practiced yoga three times throughout the year, which I attributed to insufficient time allocation.

  • Friction to reduce: Schedule yoga sessions in my calendar every Sunday for the week ahead, allowing for an hour and twenty minutes for each session and a shower afterward.
  • Friction to increase: Share my commitment and calendar with a friend to hold me accountable.

Develop a monthly calling plan for “old” friends.

My performance in this area was mediocre. I often forgot to call friends, so I needed to address the friction points.

  • Friction to reduce: Schedule a weekly calendar appointment to call a friend, including their name and phone number.
  • Friction to increase: Reach out on social media to inform friends about my intention to call and leave messages when they don’t answer, inviting them to call back.

I look forward to updating you on my progress next year and encourage you to examine your 2022 goals by considering how adjusting friction can help you achieve them. Feel free to share your resolutions with me if you’d like someone to hold you accountable or reach out if you’d like to discuss this further.

Copyright (c) 2022, Marc A. Borrelli

 

 

Recent Posts

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The Downfall of Boeing: A Lesson in Core Values

Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.

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Resolutions, Here We Go Again.

In reflecting on 2021 resolutions, the author scored themselves in three categories and sought to improve success in 2022 by addressing friction points. Drawing on advice from social psychologist Wendy Wood, the author identified areas to reduce or increase friction in their failed resolutions. By making these adjustments, the author aims to enhance their goal achievement and encourages others to consider friction when setting resolutions.

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Understanding and Optimizing Your Cash Conversion Cycle

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Are you killing your firm’s WFH productivity?

Are you killing your firm’s WFH productivity?

Productivity remained during WFH with COVID. However, further analysis found that hourly productivity fell and was compensated for by employees working more hours. What was the culprit – Meetings. Want to increase productivity, have fewer meetings.

You need to take an extended vacation. No, seriously, you do.

You need to take an extended vacation. No, seriously, you do.

Not only do you need a vacation, but it needs to be at least two weeks, and preferably longer. I have given many CEOs and business leaders this advice over the years, and I believe in it. 

Why a minimum of two weeks? Well, you need the first week to unwind and let work “go.” The second week, you truly relax, the tension of work and all its issues leave, but the brain continues to work in the background. After two weeks, I start to see the forest for the trees. The problems that were prominent in my life no longer are as relevant as I thought they were. Turning to my navigate sage power, I turn to my elder self to look back and see what is essential and what I should be focused on rather than that what has my attention.

Now I am unwinding

However, like the old saying, “Physician heal thyself,” I have failed to heed my advice until two weeks ago. I am now sitting in NE Spain, enjoying a quieter time and relaxing with good friends, food, and wine. To ensure my disconnection, I have adopted the following rules:

  • Limit email activity to 15 minutes a day.
  • Disconnect from Facebook (well, I effectively did that a couple of years ago) and all social media other than LinkedIn. 
  • Post to LinkedIn, but according to a plan, it takes about 5 minutes a day.
  • Avoid the news and television.
  • Reading lots but no business books.
  • At least 30 minutes of meditation a day.
  • Walk at least 5 miles a day.
  • Swim as often as possible in the ocean.

These rules are not complicated, but we are so conditioned to remain connected and tuned in that it takes effort to disconnect.

As I relax, I remember that I, like my clients, need to take an extended vacation to recover from the low-level stress of COVID over the last eighteen months. COVID has taken a toll on me, and more than I realized. While I have been active during COVID, I recognized that I have been reactive more than proactive. Now, not only do I want to change this behavior, but I am framing it around what I want to accomplish in Q4 2021 and 2022. 

The benefits for you

Sitting in quiet squares or overlooking the ocean, the focus has gotten more precise, the planning more effortless, and many things are just getting crossed off the list or deleted. Also, I am finding that I can better help my clients as my mind declutters.

I am focusing on achieving my long-term goals and not get distracted by what is in front of me. By refocusing, I realized much of what I was doing was not relevant to the long-term goals and thus a distraction.

Now, I can’t say that everything will be done and perfect at the end of this. But I will have more energy, be much better mentally to deal with what lies ahead, and cope with winter.

The benefit for your business.

Taking a minimum of two weeks off provides additional benefits too. You can see how your business operates without you. You will have answers to the following questions:

  • Does my leadership team function well in my absence? Are they aligned, and Is there conflict?
  • Do my team and company understand its mission, strategy, and purpose?
  • Does the organization continue to hit its KPIs for the quarter?
  • Do my clients need to deal with me, or can my team handle the clients’ needs?

I have asked many clients how their business would perform if they were unavailable for three to six months, and the answer is usually “Fine.” However, if you cannot go away for two weeks and disconnect, is that true?

If your business cannot operate without you, you don’t have a business; you have a job! To successfully leave your business, you have to make yourself redundant. Only by creating your own redundancy can you sell it, pass it on, or assume a non-executive position. I realize for many business owners, this isn’t easy, as their identity is tied up in their business, but to create a more significant legacy, ensure it operates without you.

So when did you last leave?

As I said earlier, with COVID, I hadn’t taken a vacation in 18+ months. Not only that, but with WFH, I had, like many others, increased the amount of time I was working which typically included at least one full day of every weekend. All of this took a toll.

So when did you last take a “proper” vacation for at least two weeks? Did you disconnect, or were you on calls and emails all the time, putting out fires and saving the company? The stress of the last eighteen months has taken a mental toll on all of us. If you don’t take a break and let yourself recover, you will be ill-prepared for what is ahead. While none of us know what is ahead, we can be sure that labor, supplies, and demand will be unpredictable. 

COVID and its effects are not done. I feel like we’re just finished the first half, but there is another half to go, and the opposing team that emerges from the locker room has a new strategy.

If it has been a while since you took an extended vacation, take one now, you will be amazed at how much you and your business will benefit.

 

Copyright (c) 2021, Marc A. Borrelli

 

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The Downfall of Boeing: A Lesson in Core Values

Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.

Resolutions, Here We Go Again.

Resolutions, Here We Go Again.

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Understanding and Optimizing Your Cash Conversion Cycle

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Discovering Your Niche: Why You Need to Be Famous for Something

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Rethinking Your Pricing Model: Maximizing Margins and Providing Value

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Do you know your Profit per X to drive dramatic growth?

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The War for Talent: 5 Ways to Attract the Best Employees

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Are you killing your firm’s WFH productivity?

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Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Many entrepreneurs tend to adopt hourly rates or markup over costs as their pricing models. However, there are other ways to think about pricing that can be more beneficial to your business. To do this, focus on two key aspects: the value you provide and your customers’ Best Alternative To a Negotiated Agreement (BATNA).

Selling products on the web.

When selling products online, consider the value you offer beyond just low prices. By distinguishing yourself from competitors, you can avoid competing on price alone. For example, offering detailed information on products helps customers make informed decisions. Consider offering a subscription-based support line for personalized advice to keep customers loyal. This will make them more likely to buy from you and increase repeat business.

Selling Knowledge

Businesses that offer expertise, like consulting, should consider pricing based on the value they provide. Niels Bohr’s story about charging $10,000 for knowing where to place an “X” illustrates the importance of recognizing the value of knowledge. Instead of charging an hourly rate, consider charging based on your knowledge’s impact on the customer’s business. For example, charge a small percentage of the cost per product, benefiting you and the client.

Selling Vistage

As a Vistage Chair, I help CEOs make better decisions, and the value we provide is substantial. When justifying membership costs, consider the value of better decision-making compared to hiring a consultant. Vistage membership can offer an ROI of 200% or more, making it a valuable investment for business leaders.

So what are you going to do?

To improve your pricing strategy, assess the value you provide and your customers’ BATNA. This exercise can help you maximize margins and deliver better value to your clients. Brainstorm with your product and sales teams to identify opportunities for pricing adjustments or to eliminate commodity products or services. Reach out to me for assistance in enhancing your pricing model and increasing your margins.

(c) Copyright 2021, Marc Borrelli

Recent Posts

The Downfall of Boeing: A Lesson in Core Values

The Downfall of Boeing: A Lesson in Core Values

Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.

Resolutions, Here We Go Again.

Resolutions, Here We Go Again.

In reflecting on 2021 resolutions, the author scored themselves in three categories and sought to improve success in 2022 by addressing friction points. Drawing on advice from social psychologist Wendy Wood, the author identified areas to reduce or increase friction in their failed resolutions. By making these adjustments, the author aims to enhance their goal achievement and encourages others to consider friction when setting resolutions.

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Understanding and Optimizing Your Cash Conversion Cycle

Understanding and optimizing the Cash Conversion Cycle is crucial for business growth, as it impacts cash flow and the ability to access external capital. This cycle consists of four components: Sales, Make/Production & Inventory, Delivery, and Billing and Payments. To improve the Cash Conversion Cycle, companies can eliminate mistakes, shorten cycle times, and revamp their business models.

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Discovering Your Niche: Why You Need to Be Famous for Something

As an entrepreneur, it’s crucial to specialize in a specific area and become famous for something, allowing you to generate referrals and build your brand. Understanding the “job” you’re hired for helps you stand out in the marketplace and communicate your value proposition effectively. By providing value to your clients, you can adopt a value-based pricing approach, ensuring your business remains competitive and maintains a strong market presence.

Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Rethink your pricing model by focusing on the value you provide and your customers’ Best Alternative To a Negotiated Agreement (BATNA). This approach can help you maximize margins while delivering better value to your clients. Assess your offerings and brainstorm with your team to identify pricing adjustment opportunities or eliminate commodity products or services.

Do you know your Profit per X to drive dramatic growth?

Do you know your Profit per X to drive dramatic growth?

I recently facilitated a workshop with several CEOs where we worked on the dramatic business growth model components. One of the questions that I had asked them beforehand was, "What is Your Profit/X?" The results showed that there this concept is not clear to many....

The War for Talent: 5 Ways to Attract the Best Employees

The War for Talent: 5 Ways to Attract the Best Employees

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Are you killing your firm’s WFH productivity?

Are you killing your firm’s WFH productivity?

Productivity remained during WFH with COVID. However, further analysis found that hourly productivity fell and was compensated for by employees working more hours. What was the culprit – Meetings. Want to increase productivity, have fewer meetings.

Are you killing your firm’s WFH productivity?

Are you killing your firm’s WFH productivity?

WFH during COVID did result in the falling of productivity that many feared. Surveys showed that productivity remained the same and, in some cases, increased. However, a new study of more than 10,000 employees at an Asian technology company from April 2019 to August 2020 provides a different picture. Using software installed on employees’ computers that tracked what the employee was doing, the research confirmed that the employees worked hard. Total hours worked were 30% higher than pre-COVID, including an 18% increase in working outside regular hours. But this additional effort failed to translate into an increase in output. 

This research confirms early survey evidence where both employers and employees felt they were producing as much as before. However, the correct measure of productivity is output per working hour, not hours worked. Using this measure of productivity, productivity fell by 20%.

The research further analyzed the time the employees spent in:

  • “collaboration hours,” time spent in various types of meetings, and
  • “focus hours,” time where they could concentrate on their tasks and weren’t interrupted, even by email. 

The data showed that despite working additional hours, the employees had less focus time than before the pandemic as meetings consumed the extra time. The study supports Bartleby’s law which states that “80% of the time of 80% of the people in meetings is wasted.”

Why were there so many meetings?

  1. Managers can check on their team’s performance as they are less sure of the team’s commitment.
  2. Managers call many to validate their existence when they are not in the office. 
  3. The increased difficulty of co-ordinating employees who are working remotely. 

The latter suggests that WFM is inefficient, not to mention that remote employees also spend less time being evaluated, trained, and coached.

So, while workers saved commuting time, they didn’t hourly pay fell. However, WFH did not impact all employees similarly.

  • Those who the longest tenure with the company were the most productive, suggesting they could use well-formed relationships to work more effectively. Simon Sinek explained this in a recent video
  • Employees with children worked around 20 minutes a day more than those without, implying an even more significant fall in their productivity, presumably because they were distracted by child-care duties.

The researchers point out that the firm’s staff are nearly all college-educated whose roles “involve significant cognitive work, developing new software or hardware applications or solutions, collaborating with teams of professionals, working with clients, and engaging in innovation and continuous improvement.” The impact on other types of employees could be very different.

WFH expectedly resulted in teething and coordination problems as it was imposed suddenly. However, since the study stopped last August, there is a question of whether employee productivity has increased since. Most important from the research is that employees achieved the same output with slightly less ‘focus time’ than at the office. The real culprit of inefficiency was the time spent in meetings. 

Conclusion

So, to increase your firm’s productivity, don’t have as many meetings and keep them short. Ensure that the behaviors you accept and expect as part of your firm’s culture are not encouraging non-productive meetings. Also, with a move for more WFH, start building behaviors that will encourage meeting efficiency. Finally, there are a number of ways to improve meeting productivity as I mentioned in Not Another **** Meeting.

Recent Posts

The Downfall of Boeing: A Lesson in Core Values

The Downfall of Boeing: A Lesson in Core Values

Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.

Resolutions, Here We Go Again.

Resolutions, Here We Go Again.

In reflecting on 2021 resolutions, the author scored themselves in three categories and sought to improve success in 2022 by addressing friction points. Drawing on advice from social psychologist Wendy Wood, the author identified areas to reduce or increase friction in their failed resolutions. By making these adjustments, the author aims to enhance their goal achievement and encourages others to consider friction when setting resolutions.

Understanding and Optimizing Your Cash Conversion Cycle

Understanding and Optimizing Your Cash Conversion Cycle

Understanding and optimizing the Cash Conversion Cycle is crucial for business growth, as it impacts cash flow and the ability to access external capital. This cycle consists of four components: Sales, Make/Production & Inventory, Delivery, and Billing and Payments. To improve the Cash Conversion Cycle, companies can eliminate mistakes, shorten cycle times, and revamp their business models.

Discovering Your Niche: Why You Need to Be Famous for Something

Discovering Your Niche: Why You Need to Be Famous for Something

As an entrepreneur, it’s crucial to specialize in a specific area and become famous for something, allowing you to generate referrals and build your brand. Understanding the “job” you’re hired for helps you stand out in the marketplace and communicate your value proposition effectively. By providing value to your clients, you can adopt a value-based pricing approach, ensuring your business remains competitive and maintains a strong market presence.

Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Rethinking Your Pricing Model: Maximizing Margins and Providing Value

Rethink your pricing model by focusing on the value you provide and your customers’ Best Alternative To a Negotiated Agreement (BATNA). This approach can help you maximize margins while delivering better value to your clients. Assess your offerings and brainstorm with your team to identify pricing adjustment opportunities or eliminate commodity products or services.

Do you know your Profit per X to drive dramatic growth?

Do you know your Profit per X to drive dramatic growth?

I recently facilitated a workshop with several CEOs where we worked on the dramatic business growth model components. One of the questions that I had asked them beforehand was, "What is Your Profit/X?" The results showed that there this concept is not clear to many....

The War for Talent: 5 Ways to Attract the Best Employees

The War for Talent: 5 Ways to Attract the Best Employees

In today’s War for Talent, attracting the best employees requires a focus on value creation, core customer, brand promise, and value delivery. Clearly articulate your company’s mission, identify your “core employee” based on shared values, and offer more than just a salary to stand out as an employer. Utilize employee satisfaction metrics and showcase your company’s commitment to its workforce on your website to make a strong impression on potential candidates.

Are you killing your firm’s WFH productivity?

Are you killing your firm’s WFH productivity?

Productivity remained during WFH with COVID. However, further analysis found that hourly productivity fell and was compensated for by employees working more hours. What was the culprit – Meetings. Want to increase productivity, have fewer meetings.

When Should I Sell My Business?

When Should I Sell My Business?

Every business owner I have ever known, has sought to sell their business at the top of the market. I think this is part of the movement where many are in a constant quest to outdo others. While conceptually I understand this desire, these owners should heed the voices of some sages.

Daniel Kahneman’, “The average investor’s return is significantly lower than the market indices due primarily to market timing.” 

Warren Buffett, “Trying to time the market is a fool’s game.”

Baron Rothschild, “You can have the top 20% and the bottom 20%; I will take the 80% in the middle.”

 

What it takes to Sell at the Top of the Market

If you are determined to sell at the top and are ready to step aside at any time, the only concern is timing. However, if you have other timing considerations, e.g., retire when my business is worth $X, step aside when I am 65, then things are far more complicated.

For the market to be at the top when you reach some predetermine criteria, you need to ensure that the entire economy collaborates with you. To do this, I expect you would need to have the ear of: 

  • the President, 
  • the majority of Congress, 
  • the Chair of the Federal Reserve, the Secretary of the Treasury,  
  • the President of the European Central Bank, 
  • the German Chancellor, 
  • the President of France, 
  • the President of Russia, 
  • the President of the People’s Republic of China, 
  • the heads of the People’s Bank of China, and
  • the leaders of all the leading investment banks and hedge funds worldwide, to name a few. 

Not only would you need their ear, but you would have to persuade them that collaborating with you is in their best interests as well. Furthermore, many of these people would want something in return for a favor, and most of the people I have spoken with would be able to afford the price Vladimir Putin would expect. Finally, I have found any scheme where only one person knows of it but requires many people to ensure its success is bound to fail.

As a result, I would say that trying to sell at the top is a fool’s errand and one that should be abandoned.

 

A Contrarian View

Some have argued that selling at the bottom of the market makes more sense. The rationale is that the business owner will reinvest those assets into other assets whenever they sell their company. Thus if you want to ensure continued wealth accumulation, one should do it at the bottom of the market rather than the top.

To examine this theory, I did a simple analysis. I reviewed four dates and the market conditions. I looked at the Russell 2000 Price Earnings Ratio for those dates and indexed them with the 2000 Price Earnings Ration as the base = 100. Assuming that enterprise value (EV) to EBITDA ratios followed the Russell 2000’s PER, the EV/EBITDA ratio in 2000 was 5x, and the company had an EBITDA of $1 million in each year before the sale, the results are as follows:

Date Market Conditions Russell 2000 PER (Indexed) EV / EBITDA Multiple Proceeds ($k)
12/31/2000 After the Top of the market 100.0 5.0 $5,000
12/31/2005 Near the top of the market 58.6 2.9      $2,929
12/31/2010 Emerging from a recession 52.6 2.6 $2,631
12/31/2015 Middle of a bull market 74.7 3.7 $3,734

I then made a few more simple assumptions:

  • Transaction costs to be 30% comprising intermediary and legal fees of 10% and taxes of 20%.
  • The proceeds are invested in two funds, VFIAX – Vanguard 500 Index Fund Admiral Shares and VBMFX – Vanguard Total Bond Market Index Fund Investor Shares as proxies for a general stock and bond market investment.
  • The allocation is 70% into VFIAX and 30% into VBMFX.
  • Any funds withdrawn and any distributions are ignored as they would be the same for both funds.

Below is a chart of the S&P 500 from December 31, 2000, to December 31, 2020 to show the market’s performance over the period.

Source: Yahoo Finance

Following the investments as described above after five, ten and fifteen years the returns were:

Date Initial Value ($k) After 5 yrs ($k) Return (%) After 10 yrs ($k) Return (%) After 15 years ($k) Return (%)
12/31/2000 5,000 4,822 -3.6 4,930 -1.4 7,027 40.5
12/31/2005 2,929 2,993 2.2 4,292 46.5 5,414 84.8
12/31/2010 2,631 3,790 44.0 4,786 81.9    
12/31/2015 3,734 4,643 24.3        

 

So as it can be seen, while selling at the top, provided the greatest wealth after fifteen years, interesting the difference over 10 years was less than 3% between selling at the top and selling just after the bottom. The other points are somewhere in between. Therefore, selling at the top is not the conclusive answer we expected.

 

So what to do?

What I have always advised clients is to build a business that is attractive to buyers and can be sold. The key is to create your own redundancy, so that you can sell it, stay in a non-executive capacity and effectively “coupon clip,” or pass it on to your children or employees. You have many options and if someone comes along and offers you “silly” money, take it. But don’t worry about the “Top of the Market.”

If you want to know if your business is sellable, complete this questionnaire, and if you want help building a sellable business, contact me.

Copyright (c) 2021, Marc A. Borrelli

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