In helping business owners accelerate their value, we often utilize a powerful software tool called the Value Builder System. Then, when it comes closer to selling, we act as your “financial quarterback” to coordinate with your other advisors. But the fun part is growing the business even beyond what you’ve already done.
The team at Value Builder System have tracked over 40,000 companies that used their software. Those that scored higher got a better price for the sale of their business. This should make intuitive sense to you. Two of your competitors, each with roughly the same earnings, could have sold at much different prices. Sure, in part, there could have been a more eager buyer or better negotiation involved. But that only explains a minor part of it. What really drives value are the intangibles that describe your business.
If you haven’t yet gotten your score yet, you can take the 13-minute, VBS questionnaire.
I like the Value Builder System because I am a statistician. I like a large pool of sample sizes, and 40,000 is a number that gives me confidence. But I get that some of this may be new to you, so before I run through the components of the Value Builder System, I’ll put up the measurables that you are very aware of, because the software’s language might be a bit different, but it covers familiar topics.
You’ll see how prioritizing things you already are aware of can either defend or increase you value. And this, too, you know intuitively. Too much reliance on a single customer or employee is a problem, and if we don’t adapt to new end markets or demographic changes then we’ll lose market share. The quality of continuing education for your management is of utmost importance for sustainability, as is differentiation for growth.