In building a business, you should build an asset. Growing and building a business should not be confused to growing a business to a sellable company. John Warrillow explains the importance of building a sellable company.
The Sellability Score is a way to look at your company through the lens of a buyer. What was a buyer looking at when they look at your business, because that’s the ultimate acid test for a company. Is it sellable, even if you wanna sell it in a year, or twenty years, would someone come along and buy your business today, and if so, for how much, that’s really the essence of a sellable company. For a business owner to go home at night and know that they’re building an asset, they are building something that is more valuable today than it was yesterday. That’s something precious, we really wanna deliver that with the sellability score.
Our vision on the sellability score is to help create a million sellable companies, by the end of 2050, I think we feel passionate about that because in a little way we see ourselves as Robinhood.
A lot of business owners grow and build a business but confused I think about growing a business with building a sellable company because a business that’s necessarily big doesn’t really mean that it’s sellable. Could be highly dependent on one customer for example, could be dependent on a couple of employees, if that’s the case, it’s not really sellable. So our goal is to really help business owners understand what it takes to build a sellable company.
The other side of that coin is if they do build a sellable company, they’re gonna face a mercenary buyer, on the other side of the table. Maybe a private equity firm buyer, a strategic buyer who does this all day long, and they take a very clinical view of buying a company; they’re taking a cold-hearted view of buying your life support. We wanna level the playing field, we wanna make sure that business owners have the knowledge they need to make sure they can fight back against the mercenary buyers who make take advantage of their relative naivety.
Remember Sully, the guy who flew the airplane and landed on the Hudson River? He never had the chance to rehearse. He’s done everything there’s to do in the airplane, yet, he never landed a plane in the Hudson River. In a lot of ways, business owners are on the same boat, We’ve never had the chance to sell a company in many cases, so we really wanna make sure that you’ve got all the knowledge you need to have a successful…
Find Out More Of the Sellability Test:
- Sellability Score: Why Your Score Matters
- Sellability Driver 1: Financial Performance
- Sellability Driver 2: Growth Potential
- Sellability Driver 3: Switzerland Structure
- Sellability Driver 4: The Valuation Teeter Totter
- Sellability Driver 5: The Hierarchy of Recurring Revenue
- Sellability Driver 6: The Monopoly Control
- Sellability Driver 7: Customer Satisfaction
- Sellability Driver 8: Hub & Spoke