VALUE DRIVER NUMBER 2 OF 8: GROWTH POTENTIAL

02.03.24 04:12 PM By John Kearney

VALUE DRIVER NUMBER 2 OF 8: GROWTH POTENTIAL

Hello, this is Jack Kearney, Managing Director of Trinitas Business Valuations.

The second key driver of your company’s value and sellability is GROWTH POTENTIAL.  When you think about your business, do you want it valued on what you have done in the past?  You are proud of what you have done in the past, that’s normal. You have won association or trade group awards, for example, or you have a business that has prospered for 20 or more years, or you are recognized by your customers for your reliability. Whatever it is that you think you have accomplished in the past. The hard truth of it is that, when a buyer comes in, they are not buying the past, they are not buying what you have done. They are only buying one thing.  They are buying a future stream of profits and cash flow. What is this business going to do in the future? For you, it is the end of the game, it is the finishing line, for them it is the starting line. It is a different frame of mind, so for them, they want to understand, what can your business do in the future when you are no longer running the business? So to drive up your score on Growth Potential, you really want to make the case and focus on what is the future potential of your business? Can it operate in a different market? Let’s say that you have been successful in Dallas Fort Worth, is it possible to scale your business into Houston, Phoenix, and Chicago? Could you cross-sell or up-sell additional products and services to your existing customers? Are there ways that this could work in different cultural markets, for example. All the ways that you could significantly scale up the business. The answers to those questions are going to drive up your score for Growth Potential. 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™). 

ARE YOU READY?
IS YOUR BUSINESS READY?