Business Valuation Quick Assessment

The value of your company is determined by the buyers of businesses in the marketplace, and their primary concern is the risk involved in buying a company.

To identify the risk in acquiring a company, the prospective buyer will analyze certain functional areas, or value drivers, of the company. How the buyer rates the value drivers of your company will be a major factor in determining its value.

In developing an exit strategy (whether the goal is to sell to another party or transfer to a family member), we must identify the core value drivers for your company and rate their impact on the value. Each value driver is broken down into its component parts so you can exactly determine the strengths and weaknesses of each value driver. This will help you zero in on what needs to be improved.

Valuing a business is mostly about Earnings & Risk. The higher the Earnings, the higher the value; the lower the Risk, the higher the value.

Expressed as an equation: Value = Earnings/Risk.

In the exit strategy coaching engagement, we'll be focusing on those business functions that drive value in your business and reduce risk.

In financial circles the degree of risk is represented as a percentage. This percentage is referred to as the Capitalization Rate (cap rate).

Assessment Instructions

There are 17 key valuation drivers in the next series of questions.

Each value driver has three options with a score of 0, 5 and 10. 10 is the highest score.

For a fair valuation for realistic expectations, be conservative in your answers.

After you answer all the questions and submit, you will receive an email with your response and your score and some suggestions for next steps.

1. Industry Rating *

2. Company Rating *

Product/Service Rating Note: If google/facebook reviews are a competing factor in your industry, Solid = 4.2 to 4.9+ star reviews and 5-10% of customer base leave reviews, Dominant = 4.9 stars with 20% or more. (20 reviews out of 100 customers).

3. Product/Service Rating *

4 Personnel Rating *

5 Competition Rating *

6 Company Annual Growth Rating *

7 Recurring Revenues *

8 Financial Presentation Rating *

9 Internal Systems Rating *

10 Customer Base Rating *

11 Lease Rating *

12 Supplier Rating *

13 Scalability Rating *

14. Operating Ratios Note: Examples include Gross Profit Margin (revenue-COGS), Current Ratio = Current Assets/Current Liabilities, Quick Ratio = (Cash + A/R)/Current Liabilities, Annual Growth Rate %. If you aren't sure where you line up, we can set up a review to compare.

14 Operating Ratios Rating *

15 Liquidity Ratios Rating *

16 Bankability Rating *

17 Intellectual Property Rating Note: Any IP, Patents, copyrights, trademarks, and special licenses (trade licenses) will transfer with the key employees and not be dependent on the owners.

17 Intellectual Property Rating *

I know that was a lot of answers, but this will give us good point to focus on where your company valuation is strong and areas that may need improvement to get your maximum return and protect your legacy. Click Submit to get your responses and your valuation score.

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