The Sellability Score Report™ is a system designed to assess how attractive your business might be to potential buyers. This assessment can be crucial for business owners who are considering selling their business or simply want to understand its current market position and potential value.

The report is generated based on an online questionnaire that typically takes about 13 minutes to complete. Once filled out, it provides a score out of 100, reflecting the business’s sellability. This score is calculated using an algorithm that considers multiple variables concerning the business's operational, financial, and market conditions. The key factors evaluated include financial performance, growth potential, customer satisfaction, and several others which are critical to potential buyers​.

The Sellability Score Report™ includes an in-depth analysis, usually extending to a detailed 26-page document, which outlines your results and elaborates on the eight key drivers of sellability. These drivers encompass aspects such as recurring revenue, customer diversification, competitive advantage (monopoly control), and the strength of the management team among others. Addressing these factors can significantly enhance a company's attractiveness to buyers, potentially commanding a premium price in the market​​.

Moreover, the report not only helps in evaluating the current sellability and today's business estimate of value but also serves as a guide for improving these key aspects. For business owners not immediately looking to sell, it provides insights that can help in strategic planning and operational improvements, ultimately aligning the business for better future value.

If you're interested, click the link below and you will have instant access to complete the questionnaire to get your personalized report. This tool is especially recommended for those nearing business transition phases or aiming to understand how to enhance their company's market value over time.

For the Business Estimate of Value, no financial documents will be requested, you will enter estimated high level numbers into our online tool such as top and bottom-line numbers and any add backs. The tool will step you through the process in detail.

How Are Companies Valued?

Discounted Cash Flow Method (DCF): In this method, the acquirer “buys” future income discounted for risk. The discount rate is influenced by internal factors (e.g., dependency on the owner) and external market factors (overall industry stability/growth, interest rates).

Market Comparables (“Comps”) & Rules of Thumb: In this method, the acquirer arrives at a value by comparing a business with companies of a similar size and industry that have sold recently. Rules of thumb have developed over time to provide a close approximation for certain industries.

Liquidation Value: This is usually a worst-case scenario and involves the hypothetical value of the business if it were to be closed and all assets liquidated.

Our Method

Our Estimate of Value makes use of the first two methods by comparing industry standard data sources of over 50,000 market transactions along with Rules of Thumb for hundreds of NAICS codes to determine an average market price. Your Sellability Score is used to measure soft risks and therefore where you will likely land on the range of value typically found among similar businesses in your industry. While we always show an estimate of value, higher-scoring businesses can command strategic prices that may go significantly higher than estimated, while lower scores may indicate that the business is not sellable beyond its liquidation value. While a valuation may sometimes include inventory, usually the business is sold on a debt-free, cash-free basis, meaning the seller would assume any cash or debts as well as non-direct assets (i.e., real estate).

Limitations of Model

The estimate of value in this report is based on information derived from your Sellability Score questionnaire. It assumes the information provided to be accurate and complete. This Estimate of Value is for information purposes only and should not replace a formal Opinion of Value. A business is only worth what someone will pay for it, and therefore the market will ultimately be the most accurate reflection of the value of your company.

If and when you are Ready to go to Market

We will conduct a formal Opinion of Value, we call it Market Price Analysis. At that point we will request financial documents so we can help you maximize the value of your business by recasting your financials, we can discuss those details during our 1:1 consultation.

Drs. Leilani and Fernando are award-winning Certified M&A Advisors and Licensed Business Brokers, as well as peer-reviewed published authors. They partnered with John Warrillow through The Value Builder System™ in contributing to fulfill his vision of creating one million sellable companies by 2050.

Known as the Broker Doctor Team, this husband-and-wife duo owns, operates, and leads multiple offices of First Choice Business Brokers (FCBB). They and their agents assist clients in building valuable companies and facilitate the buying or selling of businesses when clients are ready. Their professional backgrounds and shared personal history provide them with a unique level of experience and understanding for their clients.

Qualifications

Drs. Leilani and Fernando completed their MBAs and Doctorates together, aiming to continue growing, serving their community, and delivering exceptional service to anyone seeking a career change. This could be through acquiring their first business, expanding an existing one, or planning an exit strategy. Their shared family values, passion for life, culture, and growth enable them to fully comprehend the importance of their clients' success.

Dr. Fernando Acosta holds a Doctor of Management degree in Organizational Leadership with a specialization in Information Systems & Technology, a Master of Business Administration with a specialization in Marketing, and a Master of Science in Information Management. Similarly, Dr. Leilani Felix-Acosta holds a Doctor of Business Administration degree with an emphasis in eCommerce and a Master of Business Administration with a specialization in International Business. Both are Certified Mergers & Acquisitions Professionals and active, contributing members of the International Business Broker Association (IBBA) and Mergers and Acquisition (M&A) Source, where they are innovators in the industry. Additionally, Dr. Fernando is serving as the Vice Chair of the Arizona Business Brokers Association (AZBBA) and is a Certified Business Intermediary (CBI).

Community

The Broker Doctor Team is highly engaged and actively involved in the community. They are members of various organizations, including Arizona Business Brokers Association (AZBBA), Texas Association of Business Brokers (TABB), Arizona Entrepreneurs, KNOW Women, National Society of Leadership and Success, International Honor Society in Business (Delta Mu Delta), the Golden Key International Honour Society, and professional organizations such as the International Business Brokers Association (IBBA) and M&A Source. The team is dedicated to building relationships and positively impacting their community through their involvement and membership in these organizations.

John Warrillow is the Founder and CEO of The Value Builder System™, a sales and marketing software for business advisors to find, win and keep their best clients. It combines tools and ready-made content for accountants, brokers, consultants, and financial advisors who focus on helping owners protect, grow and realize the value of their business. 

John is the author of the bestselling book, Built to Sell: Creating a Business That Can Thrive Without You, which was recognized by Forbes, Inc., & Fortune magazines as one of the best business books. Built to Sell has been translated into 12 languages. John’s next book, The Automatic Customer: Creating a Subscription Business in Any Industry, was released by Random House in February 2015 and has since been translated into eight languages. In 2021, John released The Art of Selling Your Business: Winning Strategies & Secret Hacks for Exiting on Top. This completes the trilogy of books which teach business owners how to build, accelerate, and harvest the value of their company.

As the host of Built to Sell Radio, John has interviewed hundreds of founders about their exit. Forbes ranked John’s podcast as one of the ten best podcasts for business owners.

Before founding The Value Builder System™, John started and exited four companies. John's vision is to help create 1 million sellable companies by 2050.

Founded in 1994 by Jeff and Linda Nyman, First Choice Business Brokers has grown to become one of the nation’s most trusted business sales specialists. We have listed and managed the sale of over $12.5 billion in businesses. We’re thrilled to bring our decades of experience to business buyers and sellers.

Media Appearances/Features

First Choice Business Brokers has been ranked top 500 in “Entrepreneur's 44th annual Franchise 500” in 2023! We are thrilled to be part of this prestigious list and to celebrate the hard work and success of all the great brands that make up this year's ranking. In recent years, First Choice Business Brokers has been featured in Forbes, Inc., and Yahoo Finance.

Our Mission & Values

First Choice Business Brokers is a team of experienced, licensed professionals who specialize in buying and selling businesses. We understand that the process of buying and selling a business is unique and should not be compared to purchasing or selling a home. We are dedicated to providing our clients with the best selection of businesses and individualized attention. Our goal is to assist entrepreneurs in achieving their desired lifestyle through the buying or selling of businesses. We utilize innovative and creative systems to empower our clients to create and build their future through business. We are a world leader in the business sales industry and are committed to continuing to innovate in this field. We have undergone extensive training, becoming experts in business evaluation, marketing, and negotiations to satisfy buyers and sellers alike.

Once payment is received, you will instantly have access to The Sellability Score questionnaire, you can fill it out right away or do it later (you will also receive an email with a direct link to the questionnaire in case you want to finish or complete it later).

Step 1: Answer all the questions as best and as honest as you can, the answers will impact the value of your business. You will instantly receive a copy of your Sellability Score Report as an email attachment.

Step 2: Once you get your Sellability Score, you will be asked if you want a Business Estimate of Value, you will have the option to get the estimate of value now or do it later.

Step 3: Once you complete the estimate of value questions you will have the option to schedule a 1:1 session with Drs. Leilani & Fernando to review and discuss strategies based on your Sellability Score Report™ and Business Estimate of Value.