Reach Your Value Creation Goals to Exit with Value Scout’s Exit Modeler

For most entrepreneurs, their business represents the largest asset they own, and they generally work with their financial planners to craft a retirement plan. But what about value? How much annual growth do you need to hit your retirement goal? With Value Scout’s Exit Modeler™, you can set actual targets to work toward that magic number. Entrepreneurs and their advisors use Value Scout to connect growth strategies to future value creation.

Confidently Chart your Exit Path— Every Time. Setting a realistic exit point has always been a numbers game. Value Scout’s Exit Modeler Algorithm™ saves you time and energy by determining the course of action needed to achieve your value goals—in just a few clicks.

Align Business Goals with Business Reality. Value Scout’s Exit Modeler Algorithm™ offers charts and displays to help contextualize which goals are realistic, so you can focus on what matters. Leverage our data to align shareholders and key decision-makers on the path to a successful exit.

Maintain Visibility on Exit Timeline. Achieve real-time oversight and access to a unified view of all clients, company data, questions, and concerns contextualized in one place to identify who’s the closest to the finish line and who could use a hand.

Exit Modeler Algorithm™

The main goal of the Exit Modeler Algorithm™ is to demonstrate the data between what happens if you “do nothing” against a deliberate value creation plan. The Exit Modeler is a helpful tool for:

  • Demonstrating the need to create your value creation plan.
  • View a roadmap of milestones to hit year over year.

How it Works:

The Exit Modeler Algorithm™ is a dynamic tool that lets users input their exit parameters to model their future financial profile through our platform. To start modeling your exit,

  1. The user inputs their desired exit time frame and their target value (AKA the “goal value” that you require to exit your business)
  2. We identify the ” value gap ” by using your timeline to exit, target value, and company’s current market value; we identify the “value gap.” The value gap describes the difference between your target value and current market value (CMV).
  3. After the value gap is identified, the Exit Modeler Algorithm™ will calculate your target growth rate and map out financial goals to reach your target value over your timeline to exit.

Scenarios:

Baseline Scenario

The baseline scenario is a linear-based model that assumes constant growth year over year during the timeline to exit.

The baseline scenario allows you to understand the feasibility of exit parameters at a high level and to identify financial targets to reach in each year of the exit plan.

Custom Scenario

The custom scenario is a flexible model where users identify value creation targets for each year in their timeline to exit until the value gap is closed. The user is presented with a financial model with a varying number of years based on their timeline to exit.

Value creation is not linear in the real world. The custom scenario lets a user input value creation targets for each year. With that being said, users can anticipate higher or lower value creation for a particular year based on their objectives for that specific year.

Key Takeaways:

  • The Exit Modeler Algorithm™ allows business owners to map out their exit using our algorithms to accurately depict a predicted value.
  • The Exit Modeler Algorithm™ helps you identify and keep track of your financial objectives to reach year over year, which helps with strategic, annual, and quarterly planning.
  • Save time with Value Scout’s Exit Modeler Algorithm™ by determining the course of action needed to achieve your value goals.

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Author Summary

Dan Doran

Dan Doran

Is the Founder of Value Scout, Quantive and the 2019 Exit Planner of the Year. He is a recognized expert and speaks frequently about M&A, valuations, and developing more deliberate value creation strategies.

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