sellabilityscore.com.au
Based on the latest worldwide trends tracked from typical users of $1mil – $20mil in revenue businesses of the Sellability Score Tracker, reporting for Q1 2014, the following is highlighted:
The sale of a business demands higher offers when it is under management and of a larger size.
The average multiple for such beasts is 3.61.
To facilitate a premium for your business at sale time, these apply:
- operating in growth industry i.e. being in the “right place at right time”
- geographical scalability is an option
- less ongoing customisation is required i.e. there is a standard formula used for all clients
- size matters; the larger company the better = past $3mil in revenue gets better multiples
- under management, not run by owner
- growing companies i.e. showing a growth rate of 30% or more
- monopoly control is obvious i.e. what’s the barrier to entry, how is it actually unique
- score 80 or above
In the time we at Hurst Partners having been running the Sellability Score questionnaire, we are yet to see a score of 80 or above… seems like there’s a lot of work to be done to use your business as a saleable asset.
I’ll go more into detail for each of these over the next posts…
