• By Achille Ekeu, MBA, CVA

Announcement: WVG Introduces DISCOVER & UNLOCK For Small Businesses


OVERVIEW

Private businesses are the engine of economic progress and prosperity. Yet, while a business may generate sufficient revenue to be considered profitable, its true value rests in the operational infrastructure established to efficiently generate those revenues and profits. The challenge for the business owner is how to measure that efficiency and effectiveness in a meaningful, standards-based way. The financial world currently uses a combination of static, backward-looking financial measures to assign ‘value’ to a business. These measures, while useful, are limited in scope: they only measure the company’s past performance; they are typically purpose-driven versus standards-driven; they don’t explain the underlying operational and market drivers of value; and they can’t reliably predict company performance and viability into the future.

WVG provides a single framework using proprietary algorithms to assign value ratings and identify risk based on a set of generally accepted business standards. When combined with financial data, these algorithms quantify enterprise value, potential enterprise value, and the value gap (difference between the two). Based on the value ratings, specific action items are assigned for each driver. These tasks can be prioritized to suit an individual business owner’s goals and objectives. The framework and many features within this software are currently in a patent process.

ASSESSMENT FRAMEWORK

Built on more than thirty years of ongoing research, benchmarked data from thousands of companies, and algorithms developed at MIT, this software is the trusted source for operational data and analytics. It offers a unique and easy-to-use solution to help businesses quantify value and improve performance across 18 drivers. Prior to developing this software, there were no software able to assess and improve the operations and market position of private companies.

So we researched dozens of valuation techniques and approaches, consulted with notable academics and service professionals, all while working with hundreds of companies, to eventually develop our unique framework. Tested and vetted in the marketplace for nearly 15 years, our assessment approach is exceedingly practical and well-suited for any small- to mid-sized for-profit enterprise. Half of the drivers probe the company’s operational integrity while the other half explore its market position and opportunity. Collectively, they offer an accurate and holistic picture of the company’s value and ability to perform.

APPROACH

There are two assessment levels in the software. The first level is called Discover. It requires setting up the company’s fundamentals (name, industry, basic financials, etc.) and answering one question for each of the 18 drivers. The questions reflect an ideal goal - the best practice to strive for - and prompt the user to select a response that best matches their company’s current status against that standard. Outputs include the value barometer, value gap estimate, critical drivers, estimated red flags compromising value and performance, and benchmarking against industry peers. A list of all questions asked with corresponding answers is also provided.

The second level of the software is called Unlock. Unlock consists of a Deep-Dive Analysis with an additional 3-10 questions across each of the 18 drivers. Unlock will revise and refine the Discover results, providing greater transparency into the business and more precise calculations of operational health, enterprise value and value gap. Once the assessment is complete, Unlock also opens up a robust set of outputs, reports and suggested tasks for improvement, which forms the basis for the Executable Growth Plan phase.

RESULTS

Once the Unlock assessment questions are answered, the software will instantly deliver a series of reports, tasks and tools, including:

  • Reports outlining the company's Rating, Enterprise Value, Value Gap, Red Flags and more.

  • Tasks designed to maximize operational excellence, market position, and company value.

  • A Workbook to revise answers and tackle even deeper assessment questions.

  • A Vault to store and organize documents which substantiate company status and value.

  • A projections tool to run simulations based on changes in margins, revenue, scores and value.

  • A Dashboard to manage improvements and track progress.

If you have 15 Minutes to DISCOVER the Key Growth Opportunities in Your Business click Here.

Achille Ekeu, MBA, CVA

President/CEO

The Washington Valuation Group (WVG)

Achille Ekeu is a Certified Valuation Analyst (CVA), Board Member of the National Association of Certified Valuators and Analysts (NACVA) and its State Chapter President in the MD-DC Chapter. He provides valuation services for Estate and Gift Tax, Purchase, Sale of business, Debt Financing, Buy-Sell Agreements, and Litigation Support in Divorce/Shareholders disputes cases. He can be contacted by phone at 240-274-9570 or by email at achille.ekeu@washingtonvaluation.com.

#BusinessValuation #BusinessAppraisal #Valuation #Appraisal

© 2020 by The Washington Valuation Group, LLC

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