Welcome to BxAdvisors

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EMAIL US

mstorm@bxadvisors.com

PHONE NUMBER

(925) 817-7020

OPEN HOURS

9AM - 5PM PST / Mon - Fri

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EMAIL US

info@bxadvisors.com

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
Positioning for an Exit

Identifying Drivers for Creating Maximum Value at Exit

Positioning for an Exit

 

Exceptional business exits are as much about what you do before you actually sell your business than it about what you sell your business for. If you are a golfer, how far you drive the ball down the fairway is about power created by using the proper techniques in your backswing and follow through. If you are a gardener, the amount, size, and taste of your garden veggies depend a lot on how you prepare the soil, the proper watering, and the time you harvest your veggies. Doing the right things at the right time determines the type of outcome you get. 

 

Building and selling a business has the same cause and effect outcomes that a golfer or gardener experiences if they don’t use the right techniques. Experience had proven that if entrepreneurs don’t do the right things at the right time when planning the sale of their business, they are leaving to chance and roll the dice putting decades, if not a lifetime, of hard work at risk. 

 

Be smart and begin to think about and put into motion a plan to position your business for sale so when the time comes you are ready. If you do this, statistics show that you can put as much as twice as much in your pocket from the sale of your business when you sell than if you don’t do the right things in position your business for an exit. The time spent in beginning to plan for an exit is one of the best investments you can make today to ensure that you put more money in your pocket tomorrow.

 

 

Learn More About How to Creating Enterprise Value

 

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