Outcomes
What the owner is building toward. Outcomes are read from the families above them rather than worked on directly.
The elements
The four elements of outcomes
The outcomes the other six families produce: enterprise value, optionality, freedom, and legacy.
33 · J1
Enterprise Value
What the market will pay for the company as a whole.
What the assay measures
Current defensible enterprise value from normalized earnings and an evidence-based multiple, for the operating business, with real estate always valued separately, relative to the owner’s target.
34 · J2
Optionality
The freedom to sell, hold, or hand off on the owner’s terms.
What the assay measures
Number of viable paths open to the owner today (sell, recapitalize, hold, hand off) that meet the owner’s income and timing needs.
35 · J3
Freedom
A business that runs, and pays, without the owner.
What the assay measures
Owner hours per week required by the business, and the share of income that continues in the owner’s absence.
36 · J4
Legacy
What outlasts the transaction: people, brand, community.
What the assay measures
Documented plans for the people, brand, and community commitments the owner wants to survive the transaction.
How it is scored
Derived from the families that feed it
Outcomes are derived. Enterprise Value, Optionality, Freedom, and Legacy are read from the families that feed them and are not worked on directly.
Where it is worked
Where FNDRS works on outcomes
Each element is worked at a stage of the journey, and most sit in one of the six pillars of value. Here is where the outcomes elements land.
The stages
Prepare, position, market, negotiate, and transact so the outcome is the best risk-adjusted one for the owner. Or hold, from a position of strength.
Go to market and the M&A processConvert concentrated business equity into an intentional personal balance sheet: tax, estate, insurance, investment, and the life after.
Post-exit planning
The pillars
Preparation is leverage. A company that can answer a buyer's first twenty questions on day one closes faster, at the agreed price, with nothing surfacing in diligence that was not already disclosed.
Read the pillarEnterprise value is not the number that matters. What you keep is, and what you do with it. This pillar is scored for the owner, not the buyer.
Read the pillar
The families
Seven families, one table
The table reads left to right in the order value is created: what you start with, the engine, the multiple, the discount, the transfer, what you keep, and what all of it is for.
What you get
The outcomes the other six families produce: enterprise value, optionality, freedom, and legacy.
See where your outcomes elements stand
The exit score is the first assay: fifteen minutes, six pillars, and a first read on the elements that matter most.