Q3 2015 Sellability Score Tracker Results- How Sellable Is Your Business?
The 3rd quarter 2015 Sellability Tracker showcases survey results based on business’s completing The Sellability Score Survey, an interactive tool offering a comprehensive assessment of the “Sellability” of a business. Completing the Sellability questionnaire gives you an overall Sellability Score out of 100, plus your score on the eight key drivers of Sellability, which are statistically proven to increase the value of your company.
The average offer multiple of earnings for owners completing the survey for Q3 2015 was 3.76. Below are a few Q3 highlights from a few of the 8 key drivers that have an affect on how Sellable a Business is and on Multiples of Earnings from buyer’s offers. How Sellable is your business?
Multiple of Earnings |
Q3 2015 Sellability Tracker Average is 3.76 |
3.99 | If your business is geographically scalable |
4.03 | Companies that offer little or no customization to their product or service get somewhat higher offers. |
Owner Relationship with customer |
|
2.92
4.52 |
Owner knows each customer by first name
Owner does not know customers personally and rarely gets involved in serving an individual customer. |
How Easy Would It Be To Accommodate 5 X Demand? |
|
2.94
4.56 |
Impossible
Very easy |
Businesses with recurring revenue > than 50% of total revenue get more offers and higher multiples. |
|
3.76
4.14 |
12.29% of surveyed received offers (average)
17.56% with recurring revenue > than 50% of revenue received offers |
Size matters |
|
2.86
3.67 4.42 5.10 |
< than 1m in Revenue
1-3m in Revenue 3-10m in Revenue 10m+ in Revenue |
Record Keeping |
|
2.37
3.42 4.59 |
Bring shoebox of receipts to CPA at years end
Use accounting software product like QuickBooks Review and Engage accounting audit in place |
Overall Sellability Score |
|
2.76
3.59 3.76 4.17 5.10 6.27 |
<50
50-60 Average 70-80 60-70 80+ |
The Sellability Score algorithm was developed using a quantitative survey of business owners and is continually refined, based on the thousands of business owners who get their score each quarter. Achieve a Sellability Score of 80+ and – based on research from thousands of test cases – your company will be worth 71% more than the average business. To learn more about how to improve the Value of Your Business visit Evobizsales.com or call Evolution Advisors in the Roseville/Sacramento area at 916-993-543.