Value Builder
Value Builder System
We use a step-by-step process designed to remove you personally from your business, driving up its value and giving you back control over your time.
Whether you want to sell for a premium—or just know that you could—The Value Builder System will ensure you’ve got all of the options for the business and life you deserve.
Typical Owners
1. Prioritize growing revenue
2. Use proximity as their competitive advantage (e.g., “We’re the local provider”)
3. Sell lots of things to a few customers
4. Find themselves in the weeds of all business operations (their company is too dependent on them)
5. Strive for satisfied customers
6. Use a transactional business model
7. Treat their business like a piggy bank
8. Shares equity too liberally
Value Builders
1. Emphasize growing value
2. Offer a product or service with a durable competitive advantage
3. Sell a few things to lots of customers
4. Build companies that could thrive without them
5. Strive for customers who will refer and purchase again
6. Focus on creating recurring revenue streams
7. Obsess over how their company creates cash
8. Protects their equity
Calculate your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) is a measure of profitability that excludes expense items that are determined by your financing strategies (interest) and tax strategies (taxes, depreciation, and amortization).
Let's figure out what your EBITDA was last year.
| Last Year | |
|---|---|
| Pre-tax Profit (Or Loss) | $100 |
| Interest Costs | $0 |
| Depreciation | $0 |
| Amortization | $0 |
| Addbacks | $0 |
| Adjusted EBITDA | $100 |
Adjusted EBITDA
The Overlooked Owner eBook
How do you determine the value of your business?
You might think this involves an in-depth look at your books, sizing up the market, and many other types of quantitative analysis.
But a study of 1,511 companies uncovered an often-omitted factor when assessing company value—the business owner.
