Growth  & Exit Strategies | Valuations | Commercial Real Estate
Growth & Exit Strategies | Valuations | Commercial Real Estate
Transform Your Business with the Exit in Mind

8 Key Drivers of "Sellability"

Get Your Value Builder Score
  • Financial Performance
    • Know the Quality of the reporting of your Top Line Revenue and Bottom Line Profit
  • Growth Potential
    • Buyers are not buying past performance, they are buying your future stream of revenue and profits
  • Switzerland Structure
    • Independent of:  concentrated customer set,  any 1 employee, or on any one supplier
  • Valuation "See-saw"
    • At time of sale, the buyer is funding the purchase of the business AND the working capital needed to run the business
    • To be more valuable, a business needs to be generating "faster" cash (faster receivables, slower supplier payments, etc)
  • Hierarchy of Recurring Revenue (lowest to highest). The more you have the more value for your company
    • Consumables
    • Sunk money consumable 
    • Subscription revenue
    • Sunk money subscription
    • Auto-renewal in perpetuity until cancelled by customer
    • Contract revenue to buy in the future
  • Monopoly of Control
    • Control over how you price your product or service
    • Differentiated proposition: Market Dominating Position/ Unique Selling Proposition
  • Customer Satisfaction
    • Net promoter score - How likely will customers recommend you
  • Hub & Spoke
    • How dependent is your company on YOU? 
    • Upgrade your "YOU" Operating System to be less dependent on you! 
    • Written SOPs