“Why would one company be worth two or three times more than a similar company in the same industry?”
The secret to getting a premium over your industry’s standard multiple is to be able to look at your business through the lens of a buyer. Having analyzed the acquisition offers received by more than 17,000 businesses, we have discovered that there are eight factors that impact your company’s value in the eyes of an acquirer more than which industry you are in.
During this course you’ll learn how to:
- Increase your score on each of the eight drivers acquirers care about most.
- Maximize your company’s overall value.
- Find strategic buyers for your business.
- Structure your business like Jason Fried re-positioned Basecamp to maximize its value.
- Accelerate the pace of positive word-of-mouth for your business, using the same technique
as companies like Eventbrite, Intuit, Google and Apple.
- Boost your company’s cash flow in the same way Harley Davidson finances its business.
- Differentiate your business using the same methodology Warren Buffet looks for in the
companies in which he invests.
- Minimize your company’s reliance on your personal involvement using some of the strategies
Tim Ferriss used to reduce the time he spent in his business to just four hours a week.
“Is this a scam?”
No. The foundation of this course is a quantitative analysis of the 17,000 business owners who use The Value Builder SystemTM. The first step every entrepreneur takes when they start working with us is to get their Value Builder Score. We have analyzed more than 17,000 unique business- es and we’ve identified eight factors that contribute to getting higher than average offers.
To give you an idea of how much these eight factors impact the value of your company, let’s take a look at the numbers. The average Value Builder Score is 60 out of a possible 100.
And the average offer our users have received to buy their business is 3.8 times pre-tax profit.
But when we isolate the cohort of our users who achieved a Value Builder Score of 80 or above, the average offer is 6.3 times pre-tax profit—almost double that of the normal user.
“What will be my return on investment?”
Let’s imagine you have a business generating $200,000 in pre-tax profit with an average Value Builder Score (60 out of 100). Based on the statistics, we would expect your business to be worth around $710,000 ($200,000 x 3.55).
Now let’s imagine you take the Built to Sell online course, take action on the recommendations, and improve your Value Builder Score to 80 out of 100. Assuming your business is generating the same $200,000 in profit, we would now expect it to be worth around $1,220,000 ($200,000 x 6.1). You would increase the value of your business by $500,000 without changing your level of profitability.