The Snapshot Business Valuation
The Snapshot Business Valuation is a comprehensive 25-30 page valuation which will give your company a tool to use at pre-determined intervals to measure your progress in maximizing the valuation of your company and increasing shareholder wealth.
Initially it is meant to provide a starting point from which to gauge the ongoing efforts to increase the value of the company over an extended period of time. The Valuation Snapshot is an objective view by an independent 3rd party who has done millions of valuations.
And just like a physical or financial checkup, a valuation checkup needs to be performed on a regular basis to assure the strategic decisions of the management team continue to add value to the company. We recommend every six months if your anticipated transaction is less than five years out or annually at a minimum if your transaction is out further than five years.
The Baseline Snapshot Business Valuation and subsequent Snapshot Valuations will address the following items and compares your performance against those of other companies in your industry:
a. Valuations based on:
- Equity Value
- Asset Sale Value
- Enterprise Value
- Liquidation Value
b. KPI’s compared to your industry:
- Return On Equity
- Receivables Conversion
- Inventory Turnover
- Fixed Asset Turnover
- Debt to Equity
- Interest Coverage
- ash to Debt
- Income to Revenue
- Cash Flow to Revenue
- Receivables to Income
- Inventory to Income,
- Fixed Assets to Income
- Total Debt to Income
You already know how to fix the KPI issues you have, the value is to let you clearly know where you stand versus other companies in your industry.
These valuations, done over a period of years will give you a measurable method of determining your success in implementing the Valuation Driven Strategy.
You can find a more detailed explanation here. It can also be purchased separately.
The most convincing track record any company can have for any purpose is an improvement in the business valuation and Invest-Ability Index™ metrics along with documentation showing what was accomplished for each.