We want to use the Step by Step Exit framework to address our Value Gaps, but how do we identify and quantify these gaps during our session days without hiring an expensive outside valuation firm every quarter?

Question

Tyler Smith · Accepted Answer

Identifying and quantifying your Value Gaps does not require you to pay for a costly, formal business valuation every ninety days. Instead, we use the Step by Step Exit framework to establish clear, operational levers that directly impact your company's market multiple and overall enterprise value.

During our initial sessions, we calculate a baseline valuation range using realistic industry multiples and your current financial performance. The delta between this baseline and your target exit number represents your Value Gap. Once we have defined this number, we break down the operational deficiencies that are holding your value back, such as high customer concentration, owner dependency, or undocumented processes.

We then translate these deficiencies into specific quarterly Rocks. For example, if your Value Gap is driven by the fact that you, the owner, manage all key client relationships, we set a Rock to transition those accounts to another seat on the Accountability Chart. We measure our progress by tracking the completion of these value-building tasks and monitoring your financial Scorecard. This practical approach ensures that we are systematically closing your Value Gaps and driving up your business valuation through daily operational discipline, without the need for constant, expensive outside assessments.