A founder’s guide to maximizing proceeds

How to increase your business’ value and prepare for sale at a premium

How much did your home increase in value last year?  Depending on where you live, it may have gone up by 15% or more.  How much did your stock portfolio increase over the last 12 months? By way of a benchmark, the Dow Jones Industrial Average increased by around 25% over the last year.  

Now consider what portion of your wealth is tied to the stock or housing market, and compare that to the equity you have tied up in your business. If you’re like most business owners, most of your wealth is tied up in your company. Increasing the value of your largest asset can have a much faster impact on your overall financial picture than a bump in the stock market or the value of your home.  

Let us introduce you to a statistically proven way to increase the value of your business by an average of 71% using a scoring methodology tied to eight key value drivers.  Through an analysis of 6,955 businesses, we’ve discovered that companies that achieve a Bond Value Score of 80+ out of a possible 100 points receive offers to buy their business that are 71% higher than what the average industry peer company receives.   The eight proven value attributes that drive the value of your company are: 

  1. Financial Performance: your history of producing revenue and profit combined with the professionalism of your record keeping. 
  1. Growth Potential: your likelihood to grow your business in the future and at what rate. 
  1. Concentration Risk Mitigation: how dependent your business is on any one employee, customer or supplier. 
  1. Cashflow Optimization: whether your business is a cash suck or a cash spigot. 
  1. Recurring Revenue: the proportion and quality of automatic, annuity-based revenue you collect each month. 
  1. Competitive Advantage: how well differentiated your business is from competitors in your industry. 
  1. Customer Satisfaction: the likelihood that your customers will re-purchase and also refer you. 
  1. Hub & Spoke: how your business would perform if you were unexpectedly unable to work for a period of three months. 

When companies hit a Bond Growth score of 80 or more something very special happens. They receive a bona fide offer from our capital group to acquire the business.  Why would we help grow a business before we acquire / invest in it you ask? Simple, we are not in the business of investing in “fixer-uppers”, we invest in well run small businesses that have their act together and we are more than happy to pay a premium for something that is built to last.     

Get your Bond Value Score now and you will be able to track your overall score along with your performance on the eight key drivers of company value. Like a pilot working his instrument panel, you can quickly zero in on which of the eight drivers is dragging down your value the most and then take corrective action.