VALUE DRIVER NUMBER 1 OF 8: FINANCIAL PERFORMANCE
VALUE DRIVER NUMBER 1 OF 8: FINANCIAL PERFORMANCE
Hello, this is Jack Kearney, Managing Director of Trinitas Business Valuations.
Our research has identified the 8 key drivers that impact the value and sellability of a company. The first key driver is not a surprise. It’s easy to understand, it’s actually very difficult to deliver. It’s your FINANCIAL PERFORMANCE. It is made up of, what’s your top-line revenue and how rapidly it is increasing, what’s your bottom-line profit, and what is your operating cash flow? The interesting thing about Financial Performance is that there is a second, hidden element to it, it’s not only what those numbers are, but the quality of the reporting of those numbers. To drive up your score, not only focus on your top line and bottom line, but also consider investing in your financial and managerial (or cost) accounting personnel and infrastructure to make sure that those numbers are as defendable as you can. A buyer is going to come in and say, great you have these numbers, but how defendable are they, and has a third party come in to really scrutinize these? Investing in a Review or an Audit by an independent CPA, for example, is one simple way to improve your score in Financial Performance. Go now to fill out The Value Builder Questionnaire™.
The Value Builder System™ is a statistically proven methodology designed to increase the value of a privately held business. The Value Builder Score™ is an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers that acquirers (investors or lenders) consider when buying (investing in or lending to) companies. The Value Builder Score™ gives a comprehensive assessment of the "Sellability" (“Investability” or Credit Worthiness) 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 71% higher than the average-scoring business. The Value Builder System™ is available exclusively through an experienced and authorized group of advisors, known as Certified Value Builders™, such as Trinitas Business Valuations. Click on one of the buttons below to discover whether you are ready to sell your business (The Value Builder Pre-Score™) or whether your business is ready to be sold for the best price, terms, & conditions (The Value Builder Score™).