The 8 Drivers of Company Value

Written By Janet Bailey

Your Value Builder Score is calculated through analysis of your business’s performance on eight factors that drive the value of your business. Along with your score, you will see a result on all eight of the value drivers and the average score among companies in your industry.

8 Drivers of Company Value infographic

Want to take your Value Builder Score and find out how valuable your company is?

You might also be interested in:

Featured
How to Double Your Chances of a Premium Acquisition Offer
How to Double Your Chances of a Premium Acquisition Offer

Value Builder Analytics, drawing on proprietary data from over 80,000 business owners, found that companies that can run without the owner for at least three months are twice as likely to receive an acquisition offer above 6x EBITDA.

3 Ways to Get Your Employees to Sell More
3 Ways to Get Your Employees to Sell More

Who does the selling inside your business? If you’re involved, your business will be less valuable than if you weren’t. Investors and acquirers are reluctant to invest in a business where the owner is the rainmaker of the company.

Why Imperfections in Your Business Don’t Make It Unsellable
Why Imperfections in Your Business Don’t Make It Unsellable

For business owners considering their endgame, learning what makes a company valuable can feel overwhelming. Buyers prioritize factors like recurring revenue, a differentiated product or service, and a leadership team that operates independently from the owner. If a business doesn’t check every box, it can seem as though selling is perpetually just out of reach.

Growth vs. Value
Growth vs. Value

We live in a business world where growth is worshipped. Entrepreneurs measure themselves by how many people they employ. Many founders dream about making lists whose sole criterion is revenue growth.

However, if your endgame is to sell your business to a strategic acquirer one day, indiscriminate revenue growth may not result in a commensurate spike in your company’s value; in some cases, it may even detract from it.

Janet Bailey
Previous

Successful Planning Starts Much Earlier Than You Think
Next

Winning Teams and the CEPA Advantage