As a business owner, one of your goals is to maximize your multiple and to do this you must know your company’s market value. But how do you acquire this information? We recently sponsored a seminar with InfoVera™ that focused on Total Enterprise Value Opportunity (TEVO) for business owners. InfoVera is a Market Value Reporting Agency and was founded to help businesses realize their company’s market value.
Through InfoVera, a company can learn their TEVO Score. InfoVera Co-Founder, Sandy Burton explains, “First and foremost, a business owner should always know the value of their biggest asset and what factors will improve or decrease it. And it starts with answering the question “what’s my multiple?” The TEVO Score is the simplest and most straightforward mechanism to answer that question.”
What is your TEVO Score and what does it say about your business?
Your TEVO Score is acquired through a predictive analytics engine and will quantify the opportunity gap between your company’s current and potential value and provide insight on how to increase value. After a business learns their TEVO Score, InfoVera can refer them to partner with companies such as Signature Analytics, to provide financial analysis services to help companies turn insights into actions.
The TEVO score has the same scale as your credit score and, like FICO, it is comprised of 5 weighted factors:
- Financial Analysis
- Business System and Processes
- Base Business
- Management Team
What can you do to improve your TEVO Score?
Since your TEVO Score gives you insight into your company’s past, present, and future, you can use it as an opportunity to analyze future opportunities to increase company value. You need to look at where the company is going, and make that visible to outsiders looking at your business for investments, partnerships, potential buyers, etc. Signature Analytics can assist in improving your TEVO Score by providing the actionable financial analysis you need to strengthen business systems and processes, diversify customers and sales force, strengthen the management team, and look for opportunities for growth, increased margins, integration, and expansion!
How does your TEVO Score help maximize your business valuation?
You can’t maximize your business value if it is unknown! Your TEVO Score provides a standard way to make your multiple known and through that, the market value of your business known. This tool provides you the knowledge of your current valuation, potential future valuation, and the opportunity gap in-between. When you increase the understanding of your business and know the factors that impact your multiple, you are able to take the necessary actions to maximize your valuation.
We Can Help
If your business is ready to learn its market value and TEVO Score, contact InfoVera. They can provide your company’s TEVO score at no charge or with additional information develop your Marketability Assessment which will validate your score and provide areas of focus for you to improve your market value. To improve your TEVO Score, contact Signature Analytics! Our goal is to provide the highest quality accounting and finance expertise so you can make the best possible decisions for your business based on accurate accounting and financial analysis!