Value Building Score

Is it Too Late to Put your Business For Sale?

What Positioning Strategies Could You Use Before Transmitting/Exiting your Business? “If we keep doing what we’re doing, we’re going to keep getting what we’re getting.”– Stephen Covey If you put your business for sale when you want to exit the chances that you get what you want for it are very slim. You should start Read More

Can Your Business Thrive Without You?

Factor 8: Contributing to Your Company’s Sellability Hub & Spot This factor measures the extent to which your business can thrive without you. To be valuable to an acquirer, your business must be able to succeed and grow without you at the hub of all activities and your employees mere spokes that cannot operate independently Read More

Why Measuring Customer Service Performances Helps Increasing the Value of Your Business?

This attribute measures both the extent to which your customers are satisfied and your ability to assess customer satisfaction in a consistent and rigorous way, which is very important to acquirers. In the video below, John Warrillow, the founder of The Sellability Score and the author of Built to Sell: Creating a Business That Can Read More

Is Your Business Really Unique & Meaningful?

Warren Buffett is famous for investing in companies with a protective ‘moat’ around them. The deeper and wider the moat, the harder it is for competitors to compete. In addition, an enduring competitive advantage also gives an owner more control over pricing, which increases both profitability and cash flow. In the video below, John Warrillow, Read More

Factor 5: Contributing to Your Company’s Sellability Recurring Revenue

One of the biggest factors in determining the value of your company is the extent to which an acquirer can see where your sales will come from in the future. If you´re in a business that must start from scratch each month, the value of your company will be lower than if you can pinpoint Read More

Factor 4: Contributing to Your Company’s Sellability The Valuation See-saw

The Valuation See-saw reflects the impact your cash flow and profitability have on the value of your company. Imagine a playground see-saw that can move in only two directions: when one end goes down, the other must go up. The same is true of the value of your company as it relates to your cash Read More

Factor 3: Contributing to Your Company’s Sellability The Switzerland Structure

A business´s sellability requires that the business not be overly reliant on any one customer, employee or supplier. The name ‘The Switzerland Structure’ was inspired by Switzerland´s focus on neutrality. The country has not declared a state of war since 1847 (it never entered the World Wars or the Iraq war), opted out of joining Read More

Factor 2: Contributing to Your Company’s Sellability Growth Potential

Acquirers typically pay the most for businesses with the potential to grow. In rare cases, an acquiring company may even buy a business that scores high on Growth Potential but low on other attributes, because the acquirer sees a way to leverage some of its own assets to help the business grow much more quickly Read More

Factor 1 Contributing to Your Company’s Sellability: Financial Performance

Specifically, the size of your turnover along with your past and expected profitability. A financial acquirer sees buying a business as paying today for a stream of profits in the future, which is why companies are generally bought and sold using a multiple of earnings. But focusing on your multiple is a little bit like Read More

Why You Should Be Working Less,Not More, If You Want to Sell Your Business Someday…

Discover How to Spend Less Time in Your Business and Enjoy More Freedom, All While Building an Asset You Can Sell Down the Road Many people make the mistake of thinking they need to put in 80 hours a week year after year if they’re going to build a business that someone will want to Read More