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The Levers that Actually Move Company Value
The Value Builder Analytics team has analyzed data from more than 80,000 companies.
In our analysis, we found something interesting: owner-dependent businesses sell for about 2.9x earnings, while companies that can run without the founder earn closer to 3.9x – a 35% higher valuation.
That difference reflects one of the eight drivers of company value, Hub & Spoke, the degree to which a business depends on its owner.
If you advise business owner clients planning for growth or exit, understanding how these eight drivers affect valuation is essential.
That’s why we created The 8 Key Drivers of Company Value: A Playbook for Business Advisors. It’s a short guide that explains how acquirers assess what a business is worth, and how you can help owners strengthen the factors that drive their valuation.
Advisor News is brought to you by The Value Builder SystemTM, an exit-readiness platform that helps advisors start strategic conversations with business owners.