Score the 44 speed bumps buyers look for. You get a value range from your own numbers, and a plan to raise it before you sell.
Filled in with a sample HVAC company.
1. Barriers to Entry
It's hard for a new competitor to take my customers.
2. Branding
Customers could say in one sentence who we are and who we serve.
3. Business Name
Our name would still work for a new owner, and it looks good when you search it online.
4. Intellectual Property
We have a written list of what the business owns, and our name and logo are protected.
5. Being #1
We're #1 at something specific, and we can prove it with a number.
6. Certifications, Awards, Recognition
The business (not just me) has current awards, certifications, or recognition.
7. One Plus One Can Equal Three
A similar business could buy mine, and it would make their company worth a lot more.
8. Outside Advisory Team
I have outside advisors I meet with regularly, like a CPA, attorney, or mentor.
9. Train Tracks
We're keeping up with where our industry is headed.
10. Second Tier Management
I have leaders who run their areas and make real decisions without me.
11. Staff Retention
My key people would stay if the business was sold.
12. Brain Drain
How we sell and serve customers is written down, not just in people's heads.
13. Curb Appeal
Our equipment, systems, and workspace look well cared for.
14. Family Members
Family roles in the business are clear, and we've talked about what happens after a sale. (No family here? Answer Yes.)
15. Noise
We have written, tested ways to handle distractions and conflict quickly and for good.
16. Web Content
Our website is up to date and is about the company, not just me.
17. Customer Concentration
No single customer is more than 10% of our sales.
18. Customer Relationships
Customers would stay if I left. They know my team, not just me.
19. Product and Industry Concentration
Our sales are spread across several products or services and customer types.
20. Sticky
Customers come back for more than price, like contracts, service plans, or memberships.
21. Buggy Whip Factor
What we sell will still be needed 10 years from now.
22. IT Infrastructure
Our key software and systems are written down, backed up, and protected.
23. Financial Ratios and Metrics
I know how our numbers compare to others in our industry, and we're at or above average.
24. Inventory Turns and Gross Margins
We move our inventory, stock, or product quickly. (No inventory? Answer Yes.)
25. Financial Statements
We get monthly financial reports, and a CPA reviews or audits them each year.
26. Reputation of Your CPA Firm
Our CPA firm knows our industry and is respected by bankers.
27. Capitalize on the Trends
Our sales and profit have gone up over the last 3 years.
28. Trusting the Inventory
Our inventory count is accurate, with no old stock sitting around. (No inventory? Answer Yes.)
29. Equipment Leases
Every equipment lease is listed, and we know which ones a new owner can take over. (No leases? Answer Yes.)
30. Investment Needed
Our equipment and technology are up to date. No big upgrades are being put off.
31. Unreported Cash and Barter
Every dollar the business earns goes through the books.
32. Discretionary Expenses
Our books have very few personal or one-time expenses in them.
33. Legal Entity and Taxation
I know what taxes I'd owe if I sold, and I've planned for it with my CPA.
34. Licenses and Permits
All our licenses and permits are current and easy to find.
35. Real Estate Leases
Our building lease can move to a new owner, and I'm not personally on the hook. (Own the building? Answer Yes.)
36. To Patent or Not to Patent
Anything special about how we work is protected or written down as a trade secret.
37. Legislation
We know the rules and laws that affect our industry, and we keep up with changes.
38. Why?
I can say in one honest sentence why I'd sell.
39. What's Next?
I know exactly what I'll do after I sell.
40. Time Kills Deals
Our contracts, permits, and records are organized and could be handed over this week.
41. It's Not About You
When I talk about our wins, I say "we" more than "I".
42. Enhance the Presentation
If I were a buyer, I'd buy this business today, as it is.
43. Grow Your Revenues
Sales are growing, and someone besides me is in charge of growing them.
44. Find Your Pony
I can name the 3 best things about this business, and customers and buyers hear them.
$598,596 to $739,442
44 of 44 speed bumps answered. Owner's earnings $360,000. About 1.96x.
Hot buyer interest. One of the most sought-after small business types right now. About two dozen private equity groups are buying HVAC, plumbing, and electrical companies to roll them up.
Your value depends a lot on you. Buyers often pay less, or pay part of the price over time, when the owner is the business. The owner questions (Second Tier Management, Brain Drain, Customer Relationships, It's Not About You, Grow Your Revenues) are the fastest way to raise this number.
If the weak answers move to Mostly, the range goes to about $902,536. The Built to Run path is about $944,300.
12. Brain Drain — No. Write down how you sell and serve customers first. Then take a week off and see what breaks.
40. Time Kills Deals — No. Build a simple data room: documents, contracts, permits, and financials in one place.
4. Intellectual Property — Not really. Make a written list of everything the business owns, and register your name and marks.
6. Certifications, Awards, Recognition — Not really. Go after one current certification or award in the company's name this year.
8. Outside Advisory Team — Not really. Build your exit team now: CPA, attorney, wealth advisor, and a broker who knows your industry.
10. Second Tier Management — Not really. Put one leader in charge of each area, with a number and real decision rights.
16. Web Content — Not really. Update your About page and services so they match the business today, without centering on you.
17. Customer Concentration — Not really. Get no customer above 10% of sales, or put long contracts in place with the big ones.
1. Owner's earnings = profit + what you pay yourself + one-time or personal costs the business paid (add-backs). 2. We start from what businesses like yours sold for (BizBuySell averages, or our own range), then set a low and a high multiple. Smaller businesses get a lower range, bigger ones a higher one. 3. Your answers set where you land in that range. Only "Yes" earns full credit. The five owner questions count extra: if the business depends on you, you land lower. 4. Value = owner's earnings × your multiple. We show a range of 85% to 105% of that number, and we lean low on purpose. 5. The lift is the same math again with the answers moved up: "Built to Run" moves every speed bump it works on to Yes. Questions marked N/A are left out.
Joey Zoccali works with owners who are still the bottleneck. Thirty minutes. Bring this result.