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
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TPP specializes in Fractional Senior Management to scale 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.
