This graph of real client results in the last 12 months, clearly shows three key things: the valuation determined by our software algorithm (all Employee Ownership and Advisory clients are valued annually), the value potential - our software also calculates the potential value (what the business could be or should be worth) if all recommendations identified by the Business Insights Report were implemented, and finally the actual sale price.
The message here is: Value acceleration works. Clients are successfully exiting at or near (and in one case way above) the value potential as a result of concentrating on maximising the equity value of the business.
Over the past year, our clients have seen strong sale outcomes; several deals with strategic buyers (listed companies, private equity, and major industry players) closed above their latest valuations, with some approaching the value potential we had identified earlier. These aren’t fortunate breaks; they’re the result of deliberate preparation, positioning, and process. Internally tracked comparisons show sale prices exceeding the last Business Insights Report (BIR) valuations in multiple cases, precisely the pattern you expect when buyers can see and believe the upside they’ll capture post‑acquisition.
When a strategic buyer evaluates your business, they aren’t paying for last year’s numbers, they’re paying for clarity and confidence in forward performance, risk, and synergy capture. That starts with a defensible baseline valuation built from clean data, normalised earnings, and risk‑adjusted multiples. Our valuation work and templates insist on rigorous inputs and methodical normalisation to ensure the figure is credible and repeatable - exactly the kind of discipline that gets a buyer comfortable with paying a premium for certainty.
Capitaliz is the engine behind this certainty. It operationalises the journey from current value to potential value, and keeps everyone accountable to the initiatives that move the needle.
Business Insights Report (BIR): Your single source of truth for valuation, risk, benchmarking, and recommended actions. It’s delivered through a structured workflow, onboarding, data review, and client workshops to align priorities and timelines, then locked for execution.
Dynamic tracking and revaluation: By maintaining the BIR and conducting regular strategic reviews, owners track actions monthly and revalue quarterly as financials update, so improvements show up in the valuation, not just the management meeting.
Value Potential Index (VPI™): Capitaliz quantifies the upside a buyer can capture - synergies, operational improvements, scalable growth - using a proprietary dataset and hundreds of thousands of economic and industry data points to calibrate risk and multiples. This is what allows sellers to justify a premium with confidence.
Value potential isn’t guesswork; it’s a modeled, risk‑adjusted projection of the extra value that can be unlocked by closing profit gaps, improving revenue quality, enhancing capital efficiency, and executing a strategic exit plan. Capitaliz’s VPI™ ties those improvements to appropriate multiples and shows how the enterprise value trends as initiatives land.
While every business is different, the levers that consistently attract strategic buyers tend to cluster in five areas. Capitaliz helps you measure, prioritise, and implement each:
Profitability & Margin Expansion
Strategic buyers pay for earnings they can scale. Capitaliz surfaces profit gaps and benchmarking insights, then builds the action plan to close them, so your EBIT and NOPAT translate into a higher, defensible valuation.
Revenue Quality & Recurrence
Predictable cash flows command better multiples. Through BIR diagnostics and implementation roadmaps, you’ll identify opportunities to lift recurring revenue, improve pricing power, and reduce churn, raising the attractiveness and exit readiness of the business.
Capital Efficiency & Asset Utilisation
Buyers value businesses that convert assets into revenue efficiently. Capitaliz tracks ROCE, asset turnover, working capital absorption, and debt coverage, giving you concrete targets to improve before you go to market.
Risk Reduction & Governance
Concentration risk, key‑person dependence, and process gaps kill deals or push prices down. Our risk audits and de‑risking programs convert soft risks into resolved, documented improvements buyers can verify in diligence.
Scalability & Integration Readiness
Strategic buyers pay premiums for businesses that integrate cleanly. Capitaliz’s implementation plans drive systems, data hygiene, and operating cadence so the buyer’s synergy model looks achievable, not aspirational.
Our strongest results come from clients who maintain their Business Insights Report and commit to annual strategic reviews. The cadence is simple but powerful:
The payoff? When a buyer enters the process, you can evidence value creation, de‑risked operations, and scalable growth, exactly the story that converts interest into a premium offer. Recent internal analyses linking BIR values to sale outcomes reflect that pattern: clarity plus momentum equals better prices.
Defensible valuation anchored in normalised earnings and risk‑adjusted multiples - no surprises in diligence.
Documented improvements across profitability, capital efficiency, and governance - mapped to KPIs buyers already use.
Quantified upside via VPI™ that demonstrates how earnings and multiples expand post‑deal - so you can justify premium pricing.
Execution rhythm that keeps improvements visible and auditable (monthly tracking; quarterly revaluations; annual reviews).
If you’re considering a sale in the next 12–24 months, start by establishing your real, defensible value, then use Capitaliz to identify and execute the levers that raise attractiveness to strategic buyers. You can book a demo to see how Capitaliz’s Business Insights Report and Value Potential workflows would apply to your business.