Revenue Optimization for Business Valuation
Revenue metrics are critical to optimizing business values. For businesses that are sold using a multiple of revenue, every lost dollar in the sale causes damage to the exit price. Business owners may not realize that there are hidden factors that can damage sales, and ultimately lower the exit value. Conversely, there are also hidden factors that can significantly support a positive sale story. Through a revenue optimization assessment process, we protect the real value of your business.
Why would a business owner want to conduct a revenue optimization review?
Business owners sell for many reasons: finally, a time to retire and enjoy life; a need to liquidate the business due to a family dispute or divorce; or to sell to a buyer at a reasonable price. But the business owner must know what the true value of his business is before he signs over the lease and gives the key to the new owner.
Who benefits from a revenue optimization assessment?
The primary beneficiary would be the business owner. However, there are actually three beneficiaries of a revenue optimization assessment when a business gets sold. These are:
- The business owner who wants to maximize his or her exit value.
- The potential buyer (angel investor, investment banker, or VC) who wants to minimize the price that he pays.
- A family member, partner, or another party who may be in dispute with the owner, and who wants to minimize the price that they pay (or conversely, maximize their ownership share of the business).
Each of these conflicting interests can be addressed through a revenue assessment. Our Revenue Optimization Assessment approach evaluates revenue potential in a systematic and independent manner.
- We assess overall financial performance in the absolute and relative to peer group performance.
- We employ a variety of tools to estimate prospects for growth, forecast volume, and share.
- We profile relevant products, brands, and services to assess your competitive position.
- We combine our findings to provide an unbiased estimate of revenue potential.
- We are available to work with you on an ongoing retainer basis to provide guidance and market intelligence for the business.
How much is a revenue optimization assessment worth vs. the final business value?
Will an independent revenue optimization assessment improve your chances of getting the price you deserve for your business or, alternatively, reduce your risk for exploitation by other parties? Let’s have a conversation about what this could do for you and why this is important.