COMPASS Human Capital Advisors Email Format
Business Consulting and ServicesTexas, United States0-1 Employees
THE BUSINESS TRANSITION CHALLENGE- Across all industries, business founders, owners, and senior leaders face business transitions on their business journey- 1) acquiring a business or business unit, 2) growing and scaling their business, 3) reducing business dependency on the founder/owner, and 4) exiting the business through a sale or succession. But many lower middle market businesses ($10-$100 million) struggle with business transitions. Business studies stated only half of business owners/leaders feel prepared for their next transition. And, as a result, 70% of businesses fail to sell when listed, and 70% of mergers fall short within two years because they were not ready. HUMAN CAPITAL READINESS- Through our work at COMPASS, we’ve identified six human capital elements that strongly influence business owner success or, with their absence, create transition risk. In many industries, strengthening human capital readiness typically delivers a 3×–10× valuation lift in 1–3 years. Research also shows: * Leadership investment yields 2.5× higher profit per employee and 50%+ better retention. * Private equity pays 25–40% higher multiples for companies with leadership continuity and owner-independence. * Reducing owner dependency can increase value by up to 71%. THE TAKEAWAY Investing in human capital readiness before a transition is one of the highest-ROI moves a private business owner/leader can make as it offers exceptional value, reduced risk, and greater optionality. SELF-ASSESSMENT- Learn if you’re ready for your next business transition by taking our Complimentary COMPASS Human Capital Readiness Self-Assessment™. BOOK A CONSULTATION- Partner with COMPASS Human Capital Advisors to navigate your business journey transitions with human capital readiness by scheduling an introductory call through the Book An Appointment link above.