How Much Is Your Business Worth If You Sold It Today?
This is a question that most business owners think about at one time or another. I recently brought a new tool into my organization that can tell you how much your business is worth with an investment of 15 minutes of your time. Meet Value Builder.
What Is Value Builder?
If you aren’t much for reading, then click on the video below. There is also more information just below the video:
The Value Builder System™ is a statistically proven methodology designed to improve the value of a privately held business. At the core of the system is The Value Builder Score™, an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers acquirers take into consideration when buying companies.
What’s The Score?
The Value Builder Score™ gives a comprehensive assessment of the “Sellability” of your business, whether you want to sell next year or just to know that you’re building a valuable asset for the future. After analyzing more than 52,000+ businesses, analysts at The Value Builder System™ have discovered that companies with a Value Builder Score of 90+ received offers that are 7.1 times higher than the average-scoring business.
What Is The Value Builder Score Based On?
After analyzing more than 52,000+ businesses, The Value Builder System™ has discovered getting these eight factors right can lead to acquisition offers that are more than twice the industry average. Those 8 Factors are:
- Financial Performance
Your history of producing revenue and profit combined with the professionalism of your
- Growth Potential
Your likelihood to grow your business in the future and at what rate.
- Switzerland Structure
How dependent your business is on any one employee, customer or supplier.
- Valuation Teeter Totter
Whether your business is a cash suck or a cash spigot.
- Recurring Revenue
The proportion and quality of automatic, annuity-based revenue you collect each month.
- Monopoly Control
How well differentiated your business is from competitors in your industry.
- Customer Satisfaction
The likelihood that your customers will re-purchase and also refer you.
- Hub & Spoke
How your business would perform if you were unexpectedly unable to work
What If The Sale Price Is Lower Than I Expected?
Unfortunately, this happens quite often. Business owners typically value their business on factors that buyers may not be interested in. Value Builder is a proven algorithm utilizing real time data.
If the sales price of value of your business is not what you had in mind, then there are a multiple of ways we can work together to help you get to the number you have in mind. However while you may think you can just sell it now, the Value Builder data says it takes approximately 5 years to sell a business on average.
In the graphic, you can see the average score is 59. You can increase your score over time. The higher the Value Builder Score, the higher the sales price. The Value Builder companies who get scores of 90+ get almost 2x the sales price of a company with a score of 59.
By finding out the value of your business now, you can systemically work toward building the value in your business and build a foundation that you know will deliver the selling price you have in mind.
Gary Holt Is A Certified Value Builder™
Gary recognized the true “value” of the Value Builder system as it answers the most pressing question most business owners have, What is my business worth?
Are you interested in finding out…you just need 15 minutes, click on the button.
Once you are completed, you will be provided with a short-summary of your Value Builder Score. This will likely make you curious as to how you can improve your score.
With your results, you can schedule a 1-2 hour review with Gary to analyze the details of your results and look for ways to increase the value of your business to get you the sales number you are looking for.