Velocity Value Growth is an extension of Velocity Profit Enhancement and a precursor to leaving a greater legacy. When valuing a business, consider an arithmetic approach:
FACTOR A x FACTOR B = Value of a Business
Factor A: A function or derivative of profitability
Factor B: A multiplier of the value determined by industry and quality of company
The sales multiple (multiplier) in Factor B stems from business value drivers. Following a comprehensive assessment of a business’ current status in relation to these drivers, we establish the areas for improvement. Closing the value gap will have the greatest impact on the attractiveness and readiness of the business for growth, acquisition, or sale, thus maximizing legacy opportunities.