Increasing the value of your business

Understanding the 8 Drivers of Company Value and how they impact your Value Builder score can be key to building a more valuable company. Most business owners and many business buyers consider the financial performance component to be the most important, but that is not always the case. Even businesses that rank high in financial performance, may not be as valuable as they could be, or may even suffer dramatically if one or more of the other value drivers are lacking in performance.

8 Drivers of Company Value
Financial Performance

Your history of producing revenue and profit combined with the professionalism of your record keeping.

Growth Potential

Your likelihood to grow your business in the future and at what rate.

Switzerland Structure

How dependent your business is on any one employee, customer or supplier.

Valuation Teeter Totter

Whether your business is a cash suck or a cash spigot.

Recurring Revenue

The proportion and quality of automatic, annuity-based revenue you collect each month.

Monopoly Control

How well differentiated your business is from competitors in your industry.

Customer Satisfaction

The likelihood that your customers will re-purchase and also refer you.

Hub & Spoke

How your business would perform if you were unexpectedly unable to work for a period of three months.

Do you want to own a more valuable business?

Whether you are thinking about selling your business now, have plans to sell your business in the future or even if you would just like to build a more valuable business, knowing the value is an important first step. Contact a Broker at Truforte Business Group to get a business valuation.