What is the value of your company?

Written by Dr. Nolan Duck

Dr. Nolan Duck is a Board Certified Broker with the Texas Association of Business Brokers (TABB) and a licensed Commercial Real Estate Broker with the Texas Real Estate Commission. Nolan is also a Certified Value Builder, Certified Exit Planning Advisor and member of the Alliance of Merger & Acquisition Advisors. As a business coach, author and public speaker, Nolan enjoys sharing advice and consulting with business owners seeking to grow, expand or exit.

What is the value of your company?

Oct 15, 2019 | Value Builder

What’s Your Company Value?

If you’re like a lot of business owners, you assume the value of your company will be determined by your industry and its size.

While size matters, there are actually eight other factors that impact the value of your company more than your industry.  In fact, after analyzing more than 40,000 businesses, The Value Builder System™ has discovered getting these eight factors can lead to acquisition offers that are more than twice the industry average.What’s Your Company Value

The eight factors that impact company value:

  1. Financial Performance: Your history of producing revenue and profit combined with the professionalism of your record keeping.
  2. Growth Potential: Your likelihood to grow your business in the future and at what rate.
  3. Switzerland Structure: How dependent your business is on any one employee, customer or supplier.
  4. Valuation Teeter Totter: Whether your business is a cash suck or a cash spigot.
  5. Recurring Revenue: The proportion and quality of automatic, annuity-based revenue you collect each month.
  6. Monopoly Control: How well differentiated your business is from competitors in your industry.
  7. Customer Satisfaction: The likelihood that your customers will re-purchase and also refer you.
  8. Hub & Spoke: How your business would perform if you were unexpectedly unable to work for a period of three months.

Likewise, we have seen examples of companies getting less than half the industry average multiple because of a weakness in one or more of these eight areas.

To see how your company scores, you can complete the ValueBuilder Questionnaire and get a report on how you’re doing in each area.

Next, contact us and we will set up a free consultation, a $500 value.

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801 E Campbell Rd, #250L
Richardson, Texas 75081
(972) 200-0991

3350 Silver Oaks
Abilene, TX 79606
(325) 244-6300

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