If you're a managed service provider (MSP) that expects to participate in mergers or acquisitions, here's an interesting point from Manage to Win CEO David Russell: Don't just show potential suitors and investors your financials. Be sure to tout your employees, and show suitors your documented HR processes (without releasing confidential employee info). Here's why.
During the HTG Peer Group summit in Dallas, Russell made the case that well-kept HR records and information that touts your staff talent can actually increase your company's valuation/sale price. Clearly articulate:
- Your employee retention rates: Communicate that you hire, retain and promote the region's best talent. Back up those claims with documentation.
- Your HR processes: How often are employees evaluated? How are they evaluated? And how do you deal with underperforming staff members?
- Company goal setting: Show the suitor how you set annual business goals, and measure employees against those goals.
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