Welcome to BxAdvisors

PHONE NUMBER

(925) 817-7020

OPEN HOURS

9AM - 5PM PST / Mon - Fri

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PHONE NUMBER

(925) 817-7020

OPEN HOURS

9AM - 5PM PST / Mon - Fri

  • HOME
        • Welcome to BxAdvisors

        • MISSION STATEMENT

          To assist business owners in maximizing their business value by turning their hard work and dreams into reality by strategically planned exits.
    • FAQ

      A: Increasing the value of a business is not magic. Value creation is simply focusing on what a buyer is expecting to see when investigation a business they may wish to buy. If the proper steps have been taken and the business has been structure to satisfy the key value drivers a buyer is wants in a business, the valuation formula is a relatively easy calculation. However, if the key drivers are not present when a buyer begins their due diligence the buyer may not proceed to the offer stage or if an offer is made, it will be a much lower price than the seller is expecting
      A: The value drivers are: Financial metrics that are easily verifiable. Customer base that is not concentrated with a relatively few customers. Supplier and product diversification. Monopoly pricing control. Personnel depth. Organizational structure. Red or Blue Ocean strategy Types of revenue
      A:  A red ocean is a very competitive market where products and services are commoditized. A blue ocean is a market environment where margins are high because there is little direct competition. A red ocean can be migrated to a blue ocean by finding niche markets.
      A:  Not all revenue is valued the same. Revenue that is dependent on a single large customer is valued less than revenue from a thousand smaller customers. Review that is reoccurring is valued more than revenue that is dependent ongoing advertising and marketing expenditures. High margin long-term contract revenue is valued higher than almost any other type of revenue.
      A: The value builder score is the weighted score from an in depth 35 question assessment that delves into the details of how a business owner has built his business and what his attitudes are on organizational, personnel, and financial structures in the business. The score is a numerical rating of how much improvement there is to be made to maximize the value of the business. For example, a score of 50 will have an exit value of X. A score of 85 will have an exit value of X + .7X, or a project increased exit value of 170% of X.
      A:  Using proven process and methods, the value of business can systematically be increased over time with the active participation of the owner and the management team of the business.
      A:  Engagements are dependent on the Value Builder Score. The lower the score the higher the engagement because the amount of work to increase the score is more. However, in all cases, the return on the investment is multiple times more than the engagement cost, sometime as much as 100 times more. Most of our clients view our engagement as an investment not an expense. Also, this investment direct benefits the owner in the form of a capital gain vs. ordinary income.
      A:  Engagement are not less than one year and often as long as four or five years, depending on the exit window, the size of the business, and the amount of work that needs to be done.
      A:  Most engagements are done remotely. One on one / face to face engagements are also common, depending the specific needs of the business owner. Group engagement are also common and less expensive and generally result in the same benefit. A large number of our clients elect a self-determined model which is done on a self-paced model.
Client Login Portal
  • HOME
        • Welcome to BxAdvisors

        • MISSION STATEMENT

          To assist business owners in maximizing their business value by turning their hard work and dreams into reality by strategically planned exits.
    • FAQ

      A: Increasing the value of a business is not magic. Value creation is simply focusing on what a buyer is expecting to see when investigation a business they may wish to buy. If the proper steps have been taken and the business has been structure to satisfy the key value drivers a buyer is wants in a business, the valuation formula is a relatively easy calculation. However, if the key drivers are not present when a buyer begins their due diligence the buyer may not proceed to the offer stage or if an offer is made, it will be a much lower price than the seller is expecting
      A: The value drivers are: Financial metrics that are easily verifiable. Customer base that is not concentrated with a relatively few customers. Supplier and product diversification. Monopoly pricing control. Personnel depth. Organizational structure. Red or Blue Ocean strategy Types of revenue
      A:  A red ocean is a very competitive market where products and services are commoditized. A blue ocean is a market environment where margins are high because there is little direct competition. A red ocean can be migrated to a blue ocean by finding niche markets.
      A:  Not all revenue is valued the same. Revenue that is dependent on a single large customer is valued less than revenue from a thousand smaller customers. Review that is reoccurring is valued more than revenue that is dependent ongoing advertising and marketing expenditures. High margin long-term contract revenue is valued higher than almost any other type of revenue.
      A: The value builder score is the weighted score from an in depth 35 question assessment that delves into the details of how a business owner has built his business and what his attitudes are on organizational, personnel, and financial structures in the business. The score is a numerical rating of how much improvement there is to be made to maximize the value of the business. For example, a score of 50 will have an exit value of X. A score of 85 will have an exit value of X + .7X, or a project increased exit value of 170% of X.
      A:  Using proven process and methods, the value of business can systematically be increased over time with the active participation of the owner and the management team of the business.
      A:  Engagements are dependent on the Value Builder Score. The lower the score the higher the engagement because the amount of work to increase the score is more. However, in all cases, the return on the investment is multiple times more than the engagement cost, sometime as much as 100 times more. Most of our clients view our engagement as an investment not an expense. Also, this investment direct benefits the owner in the form of a capital gain vs. ordinary income.
      A:  Engagement are not less than one year and often as long as four or five years, depending on the exit window, the size of the business, and the amount of work that needs to be done.
      A:  Most engagements are done remotely. One on one / face to face engagements are also common, depending the specific needs of the business owner. Group engagement are also common and less expensive and generally result in the same benefit. A large number of our clients elect a self-determined model which is done on a self-paced model.
Client Login Portal
Maximizing Business Value

Maximizing Business Valuation Is as Much of an Art as It Is a Science.

Maximizing Business Valuation Is as Much of an Art as It Is a Science.

 

Increasing business value is as much an art as it is a science. Today more than ever entrepreneurs launch or buy businesses with the ultimate objective that at some point in time they will sell their business to capitalize on their hard work and the value they’ve created.

 

Sadly, most entrepreneurs fail to adequately plan for the sale and their eventual exit from their business. This isn’t because they aren’t smart enough, but because they are so focused on building and running their business that they put little thought into planning and positioning their business for an eventual successful and profitable exit.

 

Often unexpected events trigger the necessity for an early unplanned business exit. Since these anticipated events can’t be planned business value isn’t always maximized. The good news is that with the proper forethought and planning, most of the impact from these unanticipated situations can be minimized and the loss of value is minimal. The bad news is without planning for unanticipated events or simply not planning at all, the likelihood of a value simply evaporating into thin air is a real possibility when it comes time to exit the business.

 

Successful exits don’t happen by chance but are carefully orchestrated strategies executed over a period of years that can literally create hundreds of thousands and many cases millions of dollars of value as a business is prepared and positioned for an exit.

 

Since exit planning is a relatively new specialty in business consulting, many entrepreneurs aren’t even aware that this type of strategy is available. BxAdvisors works with entrepreneurs to develop well thought out strategies along with the tactics necessary to put into motion a plan that will position a business for a successful and profitable exit at some point in the future. 

 

Don’t let chance be your strategy for monetizing decades, and sometimes, a lifetime of hard work that you put into building your business. Take the time to begin thinking about how and when you are going to eventually exit your business. 

   

Learn About Positioning for an Exit

 
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