< PreviousA PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 40 MAY | JUNE 2019 t h e v a l u e e x a m i n e r We note that there are nine ‘High Priority’ value drivers. How are these relevant to planning—what needs to be done? Here is an outline of Toplift’s comprehensive growth plan: 1. Write the Strategic Plan to reach two million dollars net revenues in eighteen months—use information from Company Overview value driver (includes Mission). Toplift may also need to change their business model, see below 2. Holding the senior team accountable for executing the plan—best practices from the management team value driver 3. Moving from a commoditized service to a value- based service, at industry or better margins—Margin value driver. Note this operational gear meshes with Product Differentiation, and with Toplift’s business model in Company Overview 4. Differentiating Toplift’s services so the company can compete on value rather than price—Product Differentiation value driver 5. Hiring the extra professionals needed to generate additional revenues—HR value driver 6. Creating and deploying a marketing plan to generate new client leads, and a sales plan/process to convert prospects into clients—Sales and Marketing value driver. This may be highest priority value driver, but cannot be strengthened in a vacuum (value drivers are gears in an engine)6 6 According to data from CoreValue, lack of a proven and documented Sales and Marketing process is the largest single detractor to value. This value driver is a prime example of subject-specific consulting which is delivered in a silo, 7. Ensuring existing clients remain in the fold while converting them to value-based services—Recurring Revenues value driver; impacts Sales and Marketing 8. Ensuring Toplift’s services are offered into a large market—Market Size value driver. Note that creating strength in this area might require re-designing/ diversifying services, see Product Differentiation 9. Being able to deliver the engagements won by sales to new and existing clients—Operations value driver; since Toplift’s services are people-based (selling expertise), this also impacts HR One can immediately see the benefit of comprehensive planning, as compared to traditional subject matter consulting. Subject matter consulting, e.g., bringing in an HR guru, falls short because it strengthens one value driver in a silo. Comprehensive planning considers each value driver as a gear, connected to the other gears in the engine. Through comprehensive planning, the client gains holistic control of the entire operation. Planning delivers efficiency and ultimately, success: companies enacting a comprehensive plan have a proven record of generating an average of 21.63 percent revenue growth.7 The strategy-centric planning required to grow revenues differs in complexity from the transaction-centric planning to grow equity value and to prepare a company for sale. with little or no consideration to the comprehensive business needs. 7 See: Virginia Domestic Markets Expansion Program, flippingbook.com/view/887165/A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES t h e v a l u e e x a m i n e r MAY | JUNE 2019 41 RECAP •Eighty percent of CEOs want or need to grow revenues and value •Clients benefit from growth planning due to the efficient deployment of expertise and capital delivered by the planning process—maximizing engagement ROI •The business advisor is the architect, delivering a blueprint for growth; the business advisor can also act as a peer to the CEO, helping to manage plan execution • Growth engagements include defining a clear goal, analyzing the client’s value drivers, and delivering a plan to strengthen weak drivers •There are standardized methodologies, technology, and training that support the business advisor winning growth planning engagements and delivering client growth results George Sandmann is a veteran of six start- up and growth companies in technology and manufacturing. He brings this experience to his work, helping advisors win and deliver growth engagements with privately held middle market companies. Mr. Sandmann is a frequent speaker at NACVA and CTI events, notably leading “Drive Growth: the Business Advisor Boot Camp,” a two day Executive MBA level course. E-mail: VE Why They Write: continued from page 33 Why do I Write? I write: • E-mails every day mainly to reach out to prospects, current clients, and co-workers •Articles for our firm newsletters and blogs to communicate an idea or to explore a trending topic •For marketing purposes to continue to make a name for myself, and make my presence, specialty, and skills known •Texts every day to communicate with friends and family •To help my children with their school work •To give feedback to others •Valuation reports for compliance and litigation purposes •To organize my thoughts before I deliver a speech or a presentation •To convey a thought and to speak my mind •And tweet to express my opinion and oppose or agree to other political opinions •To capture a moment and memorialize my experience, my emotions, my adventures, and my journeys •In the hope of changing the world Finally, I write to connect to the awesome NACVA community of valuers and beyond! Angela Sadang, MBA, CFA, ASA I am a compulsive writer. I write because I love to teach, to provoke deep thought, to crusade for truth and for fresh perspectives. I enjoy exploring new territory via writing and then putting it out for consideration by the reader. I write because I want my clients to really understand their own companies and what makes them valuable or detracts from value. I write to give something to others that may be beneficial to them—and to engage them in a form of dialogue. I have been given so much over my lifetime by great writers of all sorts. I guess my own writing is a way of giving back something in thanks. It is demanding work to write well, but the satisfaction of real craftsmanship and a good gift to be given, is a reward in itself. Sarah von Helfenstein, MBA, CVA , Founder and CEO, Value Analytics & Design, LLCA PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 42 MAY | JUNE 2019 t h e v a l u e e x a m i n e r I hope you enjoyed last issue’s interview with Stephen Kirkland. Our interview series continues, with this issue featuring Joseph Emanuele. Since 2005, Joe has followed a winding path: from large firm, to own firm, from large firm, to own firm. His current solo practice recently broke the one-year anniversary so I thought it would be a good time to check in with him. By the way, Joe has a great LinkedIn headline: “I provide the reliable financial analysis attorneys need to serve their clients better.” SNAPSHOT: My credentials: CPA, CFA, ASA, CFE I’m located in: Laguna Niguel, CA On my own (this time) since: January 2018 Name of my firm and website url: Emanuele Forensic and Valuation Services Rod: So, the BVFLS profession isn’t exactly a calling. Tell us about your background and how you got to where you are today. Joe: I was working in investment management and studying for the CFA exams. Some of the CFA readings were chapters from a Shannon Pratt book. Soon after, I met someone who worked in a CPA firm that did BV/Lit work, and she had a copy of Pratt’s book on her desk. I liked the idea of doing BV work from within a CPA firm, so I started working toward becoming a CPA. The rest, as they say, is history. Rod: What was your first year like and what would have made it better? Joe: I did get off to a slow start. I brought in some nice engagements very early, but litigation cases rarely go according to the schedule we would like. As the cases dragged on for various legal maneuverings, I wasn’t performing any services in the lulls and wasn’t bringing in any cash flow. Luckily, I had enough smaller assignments that paid the bills until some bigger cases kicked in, but I should have put more effort into filling my pipeline before going out on my own. Rod: Did you have a formal (or even semi-formal) business plan? Joe: No formal plan at all. I bought a computer and an Office 365 subscription. My daily routine didn’t change; I just didn’t have the paycheck. Rod: How did you first attract clients and how did that strategy evolve? Joe: I was a member of Provisors, a networking group, for several years. And while I was no longer a member when I went out on my own, the contacts I had made in that group over the previous years helped me get going. Currently, I am much more focused in my networking and concentrate on attorney and CPA networking events. My favorites are events put on by the Orange County Bar Association and Orange County Chapter of the California CPA Society. Most of my work is referred to me by attorneys and other CPAs. Rod: What kinds of engagements did you start with? Joe: My first year was a mix. I did some divorce valuations, a few small M&A consulting assignments, and those slow- moving litigation cases I mentioned. I was surprised that I INTERVIEW: JOSEPH EMANUELE Joseph Emanuele PRACTICE MANAGEMENT PRACTICING SOLO "Practicing Solo” features interviews with our industry’s new and seasoned sole practitioners. If you are itching to join the solo ranks, or striving to be more efficient and effective in your established one-person firm, this column offers you practical advice, steeped in experience from the trenches, that can move you forward. By Rod P. Burkert, CPA, ABV, CVA, MBA /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES t h e v a l u e e x a m i n e r MAY | JUNE 2019 43 didn’t get a gift or estate valuation assignment until late in my first year. Rod: Do you practice in a specialized niche today? Joe: Not really. I have a lot of experience valuing wineries in California, but there isn’t enough volume in that area for me to make that a focus of my practice. My favorite assignments are litigation cases with a business valuation focus. Rod: What has been your best marketing tactic? Joe: I do everything I can to get on the radar of local attorneys and CPAs. The results are not always immediate, but the efforts pay off over time. I try to attend as many networking events as I can and then arrange some lunches or coffee meetings with people I meet. Things snowball at a certain point. Lately, I’ve been getting referrals from people I have never met. Having your name mentioned favorably at a law firm can be far more valuable than going out shaking hands. Rod: How do you price your work? Joe: I will set a fixed fee for a valuation report based on my experience with similar companies. At some point, I think we all know about how long a project should take. On top of that, there are the market pressures on pricing, so I know my fee must fall within a certain range. For litigation work, I charge by the hour, but I give an estimate of what the fees could be if the case follows a typical pattern. Rod: How do you differentiate yourself from larger firms? Joe: Most clients and attorneys like the idea that I am the one doing the work. That model may limit the size of the engagements that I can take on, but I don’t ever have to explain to someone that a staff member did something, and not me. Rod: Do you work from a home office or an “office” office? Why? Joe: I work from a home office. At first, this was primarily to reduce costs but I’m still here. I like having the ability to work when I want and take a few hours away from the desk when necessary. Rod: What is your current mobile device? Joe: I use an iPhone and iPad. Rod: Describe your current computer/workstation set up. Joe: I have a Lenovo ThinkPad with two twenty-seven inch monitors. I believe multiple, large monitors are a must. I know people who do great work on a laptop alone. I can’t do that. For printing and scanning, I have an obsolete multi- function HP printer that I need to replace very soon! Rod: Besides your phone and computer, what apps, gadgets, or tools can’t you work without? Joe: Just the basics for me. Most of my time is spent with Microsoft Office applications. I am starting to experiment a little bit with Oracle’s Crystal Ball. I also have a VOIP phone system that allows me to receive calls through my computer no matter where I am. It also comes with an iPhone app, so I always have access to calls and messages. Rod: What do you listen to while you work? Joe: Usually, nothing. If what I am working on doesn’t require absolute focus, I will listen to talk radio through iHeart Radio on my TV or music through Apple Music. Rod: How do you keep track of what you have to do? Joe: My calendar is a big part of that, but I also keep an Excel spreadsheet that is like a dashboard of all my engagements. I can see who hasn’t sent their engagement letter or retainer, keep track of trial dates, accounts receivable, etc. Rod: What are your best-cost saving ideas? Joe: Be careful with subscriptions. It may make more sense to pay for some items on a per-use basis. Those expenses can get out of control very fast if you are not doing the volume to justify the cost. Rod: Early bird or night owl—what’s your sleep routine? Joe: If I push outside of a normal workday, it would usually be into the night. I find it easy to put in two to three hours in the evening. Usually, I’m sleeping from 11:00 p.m. to 6:00 a.m. Rod: Do you have liability insurance? Joe: In my first year, I was insured through the AICPA affinity program. For my next year, I will be using CAMICO. Rod: Do you have any office/admin staff? Joe: No, it’s just me. My son will help me with some shredding now and then. Rod: Do you have a support group to call on? Joe: Yes. I can call on pretty much everyone I have ever worked with (and have several times this year). Also, I am a member of our California CPA Society Litigation Section. I know I can call many of the other members if I come up against something unusual.A PROFESSIONAL DEVELOPMENT JOURNAL for the CONSULTING DISCIPLINES 44 MAY | JUNE 2019 t h e v a l u e e x a m i n e r Rod: How do you stay technically current with changes in the profession? Joe: I get my required CPE through conferences, local classes, and webinars. To stay current takes more effort to find good content. Rod: What non-BVFLS book have you read most recently or want to get to, and why? Joe: I have Two Years Before the Mast on my nightstand, but I haven’t started it yet. The book was written by Richard Henry Dana, and since Dana Point is the next town over from mine, I thought I should read the book. Rod: How do you recharge? What do you do when you want to forget about work? Joe: I’m ten minutes from the beach, so a bike ride in that direction is always nice. If I have a couple of days, I like to head to the mountains for some fishing and camping. Rod: What practice areas do you think offer the most promise to someone going solo now? Joe: Anything related to litigation is more stressful, but that’s where a person can make a name for themselves and build a practice. The average fees are much higher than run of the mill valuation work, which makes the stress worthwhile. Rod: What is the best work/life advice you have ever received? Joe: Go out on my own. It takes a certain personality, but there is nothing better for me. Rod: Finish this sentence: If I knew then what I know now, I would… Joe: …have started in this field in my twenties rather than in my forties, as I did. There is a steep learning curve and no substitute for experience, but once you hit stride, the rewards can be great. That’s a wrap! Answers have been lightly edited. Do you have a Practicing Solo issue you would like me to address? E-mail me Rod Burkert, CPA, ABV, CVA, is a practice development coach who helps overwhelmed BVFLS professionals create more time, money, and freedom in their practices and their lives so they can create the experiences that matter most to them. For Rod, that experience is traveling full time in an RV with his wife and two dogs. What’s yours? VE I Want to Sell My Business I Need Estate Planning I'm Getting a Divorce Certified Valuation Analyst I'm Missing Out My Partnership is Dissolving Co-Sponsored by the National Association of Certified Valuators and Analysts® (NACVA®) Visit www.theCTI.com/BVTC or Call (800) 677-2009 Early registration discounts available. Dates and locations subject to change. Consultants' Training Institute® Business Valuation Certification and Training July 15–20, 2019 . . . . . . . . . . . . . . . . . . . . . . . . Ft . Lauderdale, FL July 29–August 3, 2019 . . . . . . . . . . . . . . . . . . . . . . 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BVTCad VE-MayJune.indd 15/30/19 2:56 PMI Want to Sell My Business I Need Estate Planning I'm Getting a Divorce Certified Valuation Analyst I'm Missing Out My Partnership is Dissolving Co-Sponsored by the National Association of Certified Valuators and Analysts® (NACVA®) Early registration discounts available. Dates and locations subject to change. Consultants' Training Institute® Business Valuation Certification and Training July 15–20, 2019 . . . . . . . . . . . . . . . . . . . . . . . . Ft . Lauderdale, FL July 29–August 3, 2019 . . . . . . . . . . . . . . . . . . . . . . San Diego, CA August 19–14, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chicago, IL September 9–14, 2019 . . . . . . . . . . . . . . . . . . . . . . . . Atlanta, GA September 23–28, 2019 . . . . . . . . . . . . . . . . . . . Philadelphia, PA October 21–26, 2019 . . . . . . . . . . . . . . . . . . . . . . . . Las Vegas, NV October 28–November 2, 2019 . . . . . . . . . . . . . . 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You really need to see for yourself how spectacular these databases are because I promise you, once you do, you will find yourself using KeyValueData on a regular basis, and not just for your valuation work, but for litigation, M&A, and business advisory services as well. Feel free to contact one of HQ’s Member/Client Services consultants if you want more information about EconAssist or any other KeyValueData level. Sincerely, Parnell Black, MBA, CPA, CVA Chief Executive Officer To learn more about each database and resource, and access EconAssist, visit the Member Portal on NACVA.com. Dear NACVA Member: We Have A Member Benefit You Won’t Believe (Worth Thousands) EconAssist includes the following databases: n Archived Industry and Metro Reports (1,100+ reports) n Federal & State Law Cases (2,200+ cases) n Conference Presentations (700+ presentations) n Compensation Data n S-1 Filings (68,000+ filings) n Expert Witness Profiler P.S. Take a look at KeyValueData’s other new service, which is unlimited access to our CPE On-Demand library of over 700 pre-recorded webinars. These are now available to all subscribers for a nominal annual fee. A Valuable Resource 2.1.80.19(NACVA) EcoAsstSpd.indd 15/30/19 2:58 PMThe Leader in Valuation Data and Research (800) 246-2488 I (877) 727-4690 - FAX 5217 South State Street, Salt Lake City, UT 84107 www.KeyValueData.com I info@KeyValueData.com To express our deep gratitude to our membership, in 2015 we implemented a new member benefit which all members receive for free. That is an EconAssist™ subscription to KeyValueData® (bundle value of $845). EconAssist is the basic KeyValueData subscription and is one of the five KeyValueData subscription levels—EconAssist, Silver, Gold, Platinum, and Titanium. You really need to see for yourself how spectacular these databases are because I promise you, once you do, you will find yourself using KeyValueData on a regular basis, and not just for your valuation work, but for litigation, M&A, and business advisory services as well. Feel free to contact one of HQ’s Member/Client Services consultants if you want more information about EconAssist or any other KeyValueData level. Sincerely, Parnell Black, MBA, CPA, CVA Chief Executive Officer To learn more about each database and resource, and access EconAssist, visit the Member Portal on NACVA.com. Dear NACVA Member: We Have A Member Benefit You Won’t Believe (Worth Thousands) EconAssist includes the following databases: n Archived Industry and Metro Reports (1,100+ reports) n Federal & State Law Cases (2,200+ cases) n Conference Presentations (700+ presentations) n Compensation Data n S-1 Filings (68,000+ filings) n Expert Witness Profiler P.S. 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A Valuable Resource 2.1.80.19(NACVA) EcoAsstSpd.indd 15/30/19 2:58 PM Purchase a Database à la Carte or Bundle and Save À LA CARTE PRICE ValuSource Market Comps (Formerly IBA Market Data) (Downloads Per Year) $575 7 UnlimitedUnlimitedUnlimited BIZCOMPS® (Downloads Per Year) $569371010 Duff & Phelps Cost of Capital Navigator Basic (Downloads Per Year) $2953710 Unlimited Navigator Pro# IRS Corporate Ratios $275 RMA Valuation Edition (Includes 10 Years of RMA Data) $995 Duff & Phelps Cost of Capital Navigator Pro $595 Unlimited Pluris DLOM DatabaseTM $595 DoneDeals® $595 Mergerstat Review Premiums and Discounts $125 Mergerstat Review Price to Earnings Ratios $125 Guideline Public Company Database (Downloads Per Year) 710UnlimitedUnlimited National Economic Reports (Monthly and Quarterly Reports) Valuation Reports Library Around The Valuation World ® (AVW) (Monthly) Additional Fee for CPE Credit† Archived Industry and Metro Reports (1,100+ Reports) Business Valuation Articles (7,400+ Articles) Federal & State Law Cases (2,200+ Cases) Conference Presentations (700+ Presentations) Compensation Data S-1 Filings (68,000+ Filings) Expert Witness Profiler À La Carte Data Sources Discounts (Excludes Duff & Phelps) 5%10%15%N/A 15% Off Valuation Software Subscription TOTAL BUNDLE VALUE‡ $845$1,240$1,759$3,005$5,954 Through its five web-based annual subscription packages, KeyValueData® offers Internet-based access to thousands of dollars in essential valuation data, research, and tools—all for a single, low annual subscription fee.* SAVE 68% SAVE 60% SAVE 50% SAVE 53% SILVER GOLD PLATINUMTITANIUM Bundle Add-Ons (Additional Fee Required) First Research UnlimitedYearly / Monthly § $1,099 / NA $1,099 / $100 $1,044 / $95 $990 / $90$935 / $85 Unlimited CPE On-Demand WebinarsYearly / Monthly § $995 / NA$795 / $72$595 / $55$395 / $38$195 / $20 Surgent CPE: NASBA Qualified Self-Study CoursesYearly / Monthly § $240 / $20$240 / $20$240 / $20$240 / $20 Note: Prices are subject to change. * See website for details, conditions, and upgrading to unlimited BIZCOMPS. EconAssist is free with NACVA membership. † To receive CPE for attending this course, which awards bonus points for NACVA's recertification, there is an additional annual cost of $225. ‡ Bundle value is a composition based on established retail prices if purchased separately, what competitors charge for the data/service if we do not sell it separately, and estimates of what we would charge on data not found elsewhere if we did sell the data separately. § Requires annual commitment. # Silver, Gold, and Platinum multi-user contains a one-user license for the Duff & Phelps Cost of Capital Navigator Basic (limited downloads). Titanium multi-user contains a two-user license for the Duff & Phelps Cost of Capital Navigator Pro. Additional users must be added in the shopping cart. 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