The fourth Value Driver deals with cash flow.  Do you remember when you were a kid, and you would go to the playground and you would be on a see saw or teeter totter? There is a light kid, and a heavier kid gets on and the light kid goes up. The same relationship exists between the way cash moves through your company, and its value.  This is the fourth driver of more valuable and sellable companies. Essentially, when a buyer comes and buys your business, they have actually got to write two checks. They write a check to you, the owner, that is obvious. They have to write a second check that a lot of people don’t really think about, and the second check is to fund your company’s working capital. That’s the money your business needs to operate the day you hand over the keys to the buyer. The deal is that the buyer has to write those two checks out of the same checkbook, so the more your company sucks up in the way of cash, the more cash your company needs to operate, the less they are going to be willing to buy your business. So, the way to improve your score on the VALUATION TEETER TOTTER is really to make sure that your business is generating cash. You know if you collect receivables, collect them faster. If you can extend your payable a little bit more, make sure that you are delaying your payments to the point where you are just generating more cash as a business. That is going to improve your score on the See Saw or Teeter Totter driver.  If you would like to learn more about your company’s cash flow 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™).