New Video Series – The Saleability Test

New Video Series – The Saleability Test

We’ve produced a series of videos in small bite sized chunks to allow you to digest some or all of the ideas surrounding the Saleability Test. The essence of the test is to determine the company’s exposure to dependency. Buyers/investors don’t like dependency. It can be dependency on the owner, one customer, a supplier, a coder, a geographic region or a product. Dependency kills deals. The Saleability Test is a scorecard measuring 15 criteria that influence the value placed on businesses by buyers. Low scores can indicate that a deal is just not possible. Improving your scores on these criteria will make your business significantly more valuable over time. Each test asks the reader to agree with the assertion listed by awarding a scale of five down to zero, with five being in total agreement with the assertion. Now you have a template to grow shareholder value!

Here are the videos with links:

An Introduction to the Saleability Test

Test #1 – Your compelling story and results you achieve for customers are clear

Test #2 – Industry peers see you as top 5 in the industry

Test #3 – You possess the highest margins in the industry

Test #4 – Your sales and profits are growing at 25%

Test #5 – No one customer accounts for more than 5% of sales

Test #6 – The 3 year horizon of your sector shows a healthy future

Test #7 – Legacy products DON’T dominate sales and profits

Test #8 – Your top 10 managers are regarded as world class

Test #9 – The business is NOT dependent on the owner

Test #10 – Staff morale and engagement is high

Test #11 – Current full year profits and sales forecast are ahead of last year

Test #12 – Your business model delivers a sustainable annuity stream of income

Test #13 – Your accounts are audited annually by a recognized CPA firm

Test #14 – All legal, employment, IP, tax contracts and filings are in good order

Test #15 – You produce significant annual EBITDA

Conclusions

Please feel free to share.

All videos are posted to our new landing page here.

TPP is an operational consultancy that scales businesses organically and by acquisition. Every client team consists of one or more partners with successful C-Suite track records. Our biggest added value? We align effort with strategy. Scaling is not the same as sales growth. There’s more to it than that.

 

 

 

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