Key Employees: The Quarterbacks of Your Business
Super Bowl LI was played last night. The score was 28 to 3 late in the 3rd quarter. Judging by his body language on the sideline, the New England Patriots Quarterback gave up. He couldn’t hook up with his receivers, the backs were running into piles and the defense couldn’t stop the Falcons. To win the Super Bowl being 20 points down has only been done 3 times in the past 50 years. All seemed to have been lost at that point.
Then, A Key Employee (that same quarterback that gave up) went out there and just played. No we will not say his name. We all know what happened next.
The important thing here is that the Patriots Franchise is currently valued at $3.4 billion, second only to The Dallas Cowboys who are worth $4 billion. There is no doubt, judging by the plays last night that three or four players are key people to this organization and must be valued alongside of the business when valuing this franchise.
The same may be true with your company. Do you have an employee who knows all of your clients, brings in substantial revenue, or has a specific skill set that has been honed over time? Chances are you do. When it comes time to value your business be sure to check the valuation regarding the potential benefits and risks of your key employees and how that will affect your valuation.
Otherwise, congratulations to the Patriots for winning Super Bowl LI and congratulations on spectacular half-time performance by Lady Gaga.