73: Triple Your Company’s Value in 3-5 years with Ken Sanginario
Design Development
Expertise in Turnaround Management and Value Growth Strategy
Ken Sangenario shares his journey from CPA to consultant specializing in value growth, offering insights on turnaround management, business valuation, and M&A advisory to help companies double or triple their value in a few years.
Ken Sanginario is the founder of Corporate Value Metrics and the architect behind the Value Opportunity Profile and the Certified Value Growth Advisor program. With an extensive career spanning over four decades, Ken began as a CPA before transitioning into the corporate world as a controller and CFO. He has a profound background in turnaround management, business valuation, and M&A advisory. Ken's expertise lies in guiding companies through periods of distress, identifying business gaps, and creating value growth strategies that significantly enhance enterprise value.
Episode Summary:
In this captivating episode of "Design Development," host Rens Hayes engages with Ken Sanginario, a seasoned business transformation expert, to dissect the complex world of value growth and company turnarounds. Ken shares his profound insights on improving enterprise value, shaping high-powered organizations, and leading them out of the brink of extinction.
The conversation gravitates towards Ken's exceptional programs: the Value Opportunity Profile (VOP) and the Certified Value Growth Advisor (CVGA). These initiatives have been instrumental in providing a structured approach for business leaders and advisors to diagnose company health across multiple areas, spot weaknesses, and craft precise roadmaps to success.
Listeners gain a wealth of knowledge from Ken's experiences, learning the importance of objective analysis, the significance of intrinsic value, and the art of turning potential company failures into opportunities for growth.
Key Takeaways:
- Company Balance: Understanding and balancing the eight core functional areas of a business is essential for growth and increasing enterprise value.
- Business Risk: Ken emphasizes the relationship between quality and risk, illustrating how underdeveloped areas contribute to company-specific risk, inversely affecting value.
- Intrinsic Value: Ken debunks the fallacy of EBITDA multiples and champions the concept of building companies for peak performance to achieve maximum intrinsic value, regardless of transaction value.
- Preparation for Transition: Ken advises business owners to begin planning an ownership transition three to five years in advance to ensure a successful and value-driven outcome.
- Lifelong Learning: Both the podcast host and Ken advocate for ongoing business education to fill gaps, maintain objectivity, and identify opportunities within an organization.
Notable Quotes:
- "Virtually all private companies are underperforming." - Ken Sanginario
- "Revenue and profitability are not inputs, they are outputs." - Ken Sanginario
- "Most private companies could double or triple the value of the companies over a three to five year doub
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Our goal is to help people in the industry identify opportunities for growth by sharing the journey of top performers. There is no one path. Success isn't a straight line. There is something to learn from everyone's story. Let's go!
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