Inside the engagement
This is how we stack Rocks with you. In your business and life.
This is what happens when an owner engages RockStack Advisors. The mechanics, not the philosophy.
The assessment, the execution system, the RockStack Engine, and the proof.
Start from where you are
Every engagement starts with the RockStack Assessment.
The RockStack Assessment is an honest read on where the business stands today
We spend some time asking and answering some questions and applying a common sense scoring approach. Together we produce a detailed report that covers three dimensions: personal readiness, financial readiness, and business readiness. With this assessment we can gauge where amongst the range of multiples your business would land. This assessment is the foundation for the work we do.
If the engagement is not a fit, the assessment is yours to keep.
As an option we can add a current Business Valuation. A business sale price is usually represented in multiples of EBITDA, yet most business owners don’t know how that number would be viewed by a buyer. We begin with three years of tax filing, and financials to identify a defensible EBITDA, recast the way a buyer would see it.
We don’t need both the Assessment and the Valuation to start the work, but the combination provides you with an honest read on where you are starting and annual re-assessment and re-valuation shows us proof of the progress we are making together.
The RockStack Assessment includes:
- Written personal, financial, and business readiness scores
- A current positioning within the range of multiples
- A prioritized action plan that flows straight into the first sprint
- An assessment of the execution system
The RockStack Valuation includes:
- Reclassified EBITDA and a revised reporting strategy
- Improved understanding of post-sale income requirement
- A current valuation and the specific levers that move it
Execution Matters
The Assessment becomes a plan before the first sprint.
You will come away from the RockStack assessment with a clear understanding of your current economic value and your readiness to exit. You will know what gaps need to be filled to achieve your goals.
This is important work. Before we get started there needs to be a robust execution system in place, so we don’t spin our wheels. Many of my clients use EOS or a similar system which is perfect. If we help you implement an execution system we leverage Ninety.io.
What's the minimum requirements of an Execution System
- Key deliverables (Rocks) that align with the larger important goals
- Rocks assigned to owners that are individually accountable
- a 90-day sprint cadence
- Intermediate milestone checkpoints to check status
- Metrics that measure the change in the expected outcomes
Learn more about
- EOS (Entrepreneurial Operating System)
- Ninety.io (SaaS 90-day system platform)
- RockStack Engine
The engine of the work
The work runs in ninety-day sprints.
Each sprint commits to a small number of Rocks. It is better to commit to two Rocks and complete two rocks than commit to five and miss three.
Typically, 3-5 Rocks on each of two tracks which run concurrently:
- The Business Track lowers the risk a buyer sees and expands economic value.
- The Personal Track helps the business owner prepare for wealth and the life that it brings
At RockStack Advisors, we will roll up our sleeves and work with you on the business track. On the personal track we will act as the general contractor, so the owner is not managing a roster of advisors.
Every sprint closes with one question: Keep growing, or prepare to exit?
The answer sets the next sprint.
What a Rock is
The Business Track
On the business track, a RockStack advisor works hand-in-hand with the business owner and their lead team to select the right Rocks, and then to execute, monitor, and close each 90-day sprint. The succession of those sprints are designed to eliminate the risk perceived by a potential buyer and increase the economic value of the company.
We work to close the value gap and to open choices to the business owner while they still own the company.
The Personal Track
On the personal and financial track, there is a core team of professional advisors that support the work. These may include a Financial Advisor, a CPA, a lawyer, and sometimes a family business advisor. If there are some gaps in the lineup we can help recruit the right advisors.
On this track we help the players on the field work as a team. We coach the team and coordinate concurrent paths for the business, and personal and financial sprints.
The Tracks Merge
When you are ready to pursue an exit, the work of these teams come together. As the transaction approaches, we’ll introduce you to additional transaction specific advisors that may have a place on the team: Investment bankers, ESOP advisors, M&A attorneys, etc.
On this track we continue to play the role of coach to the talent on the field. We help focus this team of professionals through the diligence process and help them work together to achieve a significant exit without regrets.
The proof
Every year, the business is measured.
Once a year, a RockStack assessment is re-run. We can also run a Valuation against current financials.
Sprint outcomes show the plan is moving. A re-assessment and a re-valuation show how the market values what the work produced. It is a number the owner can defend, and use as a basis for decisions.
Every week, progress is measured. Every year, the business is re-assessed.
Two paths, one framework
One framework. Two ways to run it.
Value Acceleration Groups
Value Acceleration Advisory
Book a first conversation. Thirty minutes, no pitch. We answer your questions and learn about you and your business. If it makes sense, we can talk about next steps and book an assessment meeting.
Take the Readiness Check. Twelve questions, about 5 minutes and get a rough idea of where you are. It’s not the RockStack Assessment, but it’s low investment and may surprise you.
Attend an Event with RockStack. Join other business owners and senior leaders as a guest of RockStack at events around the region. Some are purpose focused, some are educational, some are just for fun.