Business value is the sum of the values created by various strategic initiatives. The aggregation of these values is equal to the value of the business.
Our proprietary valuation model helps business owners create more valuable businesses. These tools are used to determine the value of the contribution from strategic initiatives such as improving inventory management, collecting receivables faster, increasing the level of net investment, and determining the return on investment (ROI) on social media campaigns.
When applying our model, business owners immediately realize actions taken to increase revenue, and even after tax profit, may not lead to an increase in business value, and in some cases actually result in a decrease in business value.
Employing our model reduces the likelihood that business owners and management will pursue strategies, and take actions that destroy, rather then enhance, the value of the business. Our model sets down procedures that help businesses understand the options available to create competitive advantage and maximize the value of the business.