Every Business Has a Transferable Value Score. Do You Know Yours?

Let’s face it, without creating growth a business cannot survive. Without creating value a business owner cannot exit.
TAKE the ASSESSMENT
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“Our team created this assessment to empower business owners and their teams to understand what truly drives company value, and to know what steps and tactics to take to maximize that value now and at the future exit.”

PATRICK UNGASHICK
Author, Speaker and CEO of NAVIX Consultants

What is Transferable Value?

Increasing revenue and profits will take you and your company far, but growth alone will not lead to a successful exit.At exit, your future buyers (or successors) will focus not only how much your company did, but also how your company did it.

Consider these two sample companies of the same size and in the same industry: Which one presents more value?

Widget Company A

($20MM REVENUE / $2MM EBITDA)

• Large portion of sales from one or two key customers

• Day-to-day operations run by the company owners

• No written growth goals or measurement against financial targets

• Company is people-dependent without formal process

Widget Company B

($20MM REVENUE / $2MM EBITDA)

• Sales through a diversified customer base

• Day-to-day operations run by a professional management team

• Day-to-day operations run by a professional management team

• Company follow sustainable and scalable written process

Company B has characteristics that will make it easier, less risky, and less expensive for a future buyer to acquire and scale that company, or a future successor to assume its leadership. We call these characteristics a company’s Transferable Value. For business owners to happily exit one day in the future, they and their teams must create Transferable Value.

What Business Owners Are Saying

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“It is easy to imagine that every potential seller wants to maximize their return in the selling of their business. It is also easy to believe that few recognize how much hard work is involved. The Transferable Value Score allows the seller to frame the opportunity in the right light. My advice for another CEO would be–don’t waste the opportunity.”

Allen Cryer
CEO/Owner - Specialty Machine

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“The NAVIX Transferable Value Score assessment was a real eye-opener. I understand now why it should be done early in the exit planning cycle. It showed weaknesses in our organization that were going to impede progress on and prospects for a successful exit. Thanks to the NAVIX Transferable Value assessment, we were able to jump on our deficiencies soon enough to keep our exit plan on the timetable we needed. This is a must-do exercise for a successful exit.“

Tim Hays
President - Metsch Refractories, Inc.

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“We have been using the Transferable Value Score since 2012. It has proved to be a very valuable strategic tool. I use it as an “alarm clock” as the basis for metrics we benchmark against. “What gets measured, gets improved”, right? It helped us identify opportunities to stress for our long-term improvements.”

Steve Talan
CEO/Owner - Talan Products Inc

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“When my partner and I first began thinking about expanding our medical device business and partnering with a private equity firm, one of the first questions we needed to nail down was how much we were worth to our future partners? We needed to know what we did that added and detracted value and then set up a process to address those value drivers and make sure we’d get credit when we partnered with PE. The Transferable Value Score did just that and was a huge asset to us.”

Shawn Regan
CEO/Owner - Rhythm Link

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“I’ve been impressed with the Transferable Value Score assessment tool for several years now. It’s been invaluable in help my executive team continuously prepare our total organization to deliver maximum value. Transferrable Value ultimately helps build alignment with my team.”

John Rowady
CEO/Owner - Revolution World

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“Business owners and leadership teams are faced with endless decisions. The Transferable Value Score assesses all aspects of the business and provides a roadmap that says, “dig here first.” This makes decisions about where to focus resources when and why easy. It eliminates blind spots, takes the emotion out of decision making and puts expediency and focus in. Use these findings to build your strategic plan, create transferable value, increase organizational health, and be ready for exit on your own terms.”

Lisa Dugan
Executive Coach and Vistage Chair - Vistage Inc.

Why Create Transferable Value?

  • Maximize company value
  • Increase performance
  • Build effective leadership
  • Improve succession planning
  • Reduce owner dependency
  • Achieve a successful exit
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Explore the 7 Drivers of Transferable Value

  • Owner Independence

    A business that is dependent on its owner(s) presents risk, both today and in the long term if the dependency continues. In contrast, a business with a high level of owner independency is potentially a more stable and valuable organization.

  • Financial Clarity

    Financial statements and results that are readable, credible, and formatted consistent with business norms increase value because current lenders or investors, and future buyers or successors, likely have less concern about inaccurate or indefensible data.

  • Compelling Plan

    Credible strategies and tactics to propel business growth over the next three to five years show employees and third parties (customers, lenders, investors, strategic partners, etc.) not only that the business has a bright future, but also that the company's leaders know how to plan and execute at a high level.

  • Managed Risks

    Diversified revenue across a wide customer base, with little vulnerability to market or geographic concentration, increases business value for it creates a stronger and less risky platform to build upon.

  • Sustainable Brand

    Creating and implementing a compelling reputation strategy can increase business value. To enhance value, the company's intangible reputation must be made tangible in a portfolio of intellectual property (IP) assets. A compelling IP portfolio can enhance the company’s competitive position and growth potential, and reduce risk that the brand, products, or services can be undermined by competitors.

  • Scalable Systems

    Businesses that have the ability to scale faster and to a greater volume, without compromising efficiency and profitability are more valuable because of their greater potential for growth.

  • Top-Notch Team

    A management/leadership team with a clear, proven track record of leading the company, independent of the business owner(s), enhances business value by providing strong, continuous leadership for the organization.

TAKE the ASSESSMENT
The Transferable Value Score, with its 80 assessment questions organized into 7 Value Drivers, shows business owners and leaders how to increase company value today and at the future exit. Raising your company’s Transferable Value Score is the path to achieving your exit goals, such as maximizing company value, exiting on your own terms, and building a sustained business legacy.

Interested in Bringing the Transferable Value Score Assessment to Your Company?

The Transferable Value Score assessment shows leadership and management teams how to maximize company value. TVS is used by company teams to guide long-term planning for future exit events, to assist in succession planning, or to help identify and align around important business improvement opportunities.

Contact us to learn more about engaging your team in the Transferable Value Score assessment.