How to Increase Your Shareholder/Ownership Valuation

If you are like most closely-held or private corporations, your most valuable asset is your shareholder/ownership valuation. This multiple of your EBITDA (or profit margins) is what investors and/or potential buyers are most interested in.

Even if your company isn’t currently for sale, you know how important it is to keep your valuation up. This important business metric is used in stockholder buybacks, banking negotiations, and your personal wealth assessments.

The most effective way to improve your valuation is to stop the existing Financial Leakage that resides inside your current business model. It’s the single most important business objective you can accomplish in short order this year.

Think about it this way: If your firm currently has $200,000 of Financial Leakage (the hidden costs related to productivity and operational inefficiencies when you experience a claim or loss) and your valuation multiple is 5x your EBITDA*...

You’re leaving $1,000,000 of Shareholder/Ownership Valuation on the table.

How to Increase Your Shareholder/Ownership Valuation

To prevent this valuation loss, you should immediately:

  1. Quantify the Financial Leakage currently inside your risk financing and risk control program. This is a finite, quantifiable, and controllable expense that is keeping you from maximizing your valuation multiple.
  2. Recapture as much Financial Leakage as possible. This has been an impossible endeavor until recently, as that true leakage amount was difficult to pinpoint. Now (with the proper analytic tools), we can assess your Financial Leakage AND (more importantly) create a plan to help you recapture it.

As Analytic Brokers™, we are uniquely qualified to help you reduce your Financial Leakage and improve your Shareholder/Ownership Valuation. When that Leakage returns to your business in the form of improved EBITDA or profits, your Valuation will move upward.

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