This is the second in a three-part series detailing a business assessment. Check back for an article describing the business assessment deliverables. Or if you’d like to have the entire white paper emailed to you, just drop a note to email@example.com.
A business assessment is a valuable tool to guide business owners to increase the value of their company. To read a more thorough description, see our previous article What Is a Business Assessment? Part 1 of 3.
When considering whether to have an assessment done, owners often wonder what exactly is involved in the process. To answer those questions, we’ve detailed the assessment process below.
What is the Process? In general, a business assessment takes about 4-6 weeks to complete depending on the type of approach you chose. Below are the basic steps in completing a business assessment.
- Data collection: The initial phase of every business assessment is collecting data. This data typically includes basic financial data, select operational statistics, customer satisfaction scores, quality of care data and other management reports.
- Research: The evaluator will review the data collected and conduct their industry research. The industry research helps validate or direct later decisions about the company’s direction. This industry information is critical. If the evaluator does not have industry experience or access to industry data, decisions about the direction of the company are being made in a vacuum. We’ve seen generic business assessments applied to healthcare companies, and the deliverables are useless. Read our article, Realities in Healthcare, to get a better understanding of the nuances of healthcare as it relates to growth initiatives.
- Interviews: The evaluator will then conduct interviews with those employees selected by the business owner. The owner may be the only interviewee or there may be dozens of employees selected. A key point at this juncture is that the interview questions should be customized based on the data collected and research from the industry. While there are standard questions, every company and every healthcare segment is different, and generic questionnaires are ineffective.
- Evaluation: The evaluator will analyze each segment of the business and determine if it is contributing to or detracting from the value of the company. Every evaluator has a different approach, but Wyatt Matas breaks our evaluations down into 9 categories.
- Valuation (Optional): Concurrent to the interview, the company may choose to have a valuation completed. This helps benchmark the company’s current status, especially if the company plans to exit in the future. (See articles on valuing a healthcare company.) Adding this data point to a business assessment enhances an executive’s insight into how the market perceives their company and how far off they are from their long term financial goals.
- Exit Strategy Review (Optional): For business owners looking to exit within 2-5 years, Wyatt Matas has an extra layer of review we preform to ensure the owner is fully prepared at the appropriate time.
- Report and Presentation: While there may be follow up calls and preliminary reports, the final step is to present the findings. Reports may be presented to the leadership team and/or Boards of Directors.
To make sure we are climbing the right mountain, it is helpful to use a business assessment tool to evaluate your direction, benchmark your current status and map out a plan for the current environment. If you think a business assessment is right for you, email firstname.lastname@example.org for more information.