Your Business is Worth More than You Think

When you’re on the ground, in the thick of running your business every day, you probably don’t give a whole heck of a lot of thought about how much it’s actually worth. Why would you? You’re busy taking care of clients, cleaning up homes and businesses and ensuring you’ve got happy employees. You’ve got enough going on.

But really, take a second and think about it. Do you know how much your restoration company is worth? If you were to put it up for sale today, what’s the practical number you’d be looking for? Remember, take your own emotion out of it – just a cold valuation of your business.

Tough isn’t it?

We know it’s a tough one. Putting a dollar amount on something that you’ve poured your every breath into for years isn’t easy. But someone buying your business is going to put a cold dollar amount on it. That’s why you need to bring in a professional, someone that can take your emotions and filter them through a lens of practicality.

That’s where we come in. Here, we’ll take a look at a few of the ways your business is way more valuable than you think and what you can do to think more critically about valuation.


Worth more than you think

So, what goes into value? It’s more than just the money that comes in the door as profit. Understanding your business’ value is a critical step to realizing that your business is likely worth a lot more than you think it is.

We can get it out of the way first. Of course, your business’ value is at least partially predicated on how much money you bring in. Enough said there.


Think about the equipment and the various vehicles you have in your fleet. When were they replaced last? Are they in good working order? Perhaps they’re more powerful than your competitors’ equipment. Moreover, how many spare parts do you have for your machinery. All of these things add to the value of your company.


Where are you in the country? Restoration companies in flood prone areas tend to be worth more than those in the desert. Don’t start expanding to get into a flood prone area however. One of the most common calls a restoration company receives is in response to fires, which can happen anywhere.


Are you the only game in town? Being the only restoration company in your area is a mixed blessing. Sure, it guarantees that you’re getting the call whenever disaster strikes. However, it may negatively impact the value of your company if a buyer isn’t able to expand your business. Still, guaranteed business is a huge value add for buyers.


Human Capital
Don’t forget about your employees. It can be difficult to put a value on your workers, but think about them as years of experience. If your workforce has a combined experience of eighty years, you better believe that you’re more valuable than someone with just ten. Consider also your front office staff and organization. Is everything tight?


If you own the property on which you’re housing an office or parking vehicles, your value can fly up. Simple as that.


Increasing value
You want more money – no harm there and absolutely warranted. You’ve built your restoration business from the ground up. You want top dollar – we want to deliver it. One of the best ways you can build value is by thinking about multipliers. Many business owners make the mistake of thinking about value only in terms of profit. Money in the door is important, but think carefully about the different things that make your business unique and thus, more appetizing for buyers.

You can read more about multipliers and the entire value builder system on our blog here.


The You Factor
Don’t forget about the you factor. You’ve built this business to be what it is. It’s worth a lot to you and you can rely that value to buyers. Still, you may need a hand with the complex areas around selling your business.

Call us. No obligation at all. We’d love to talk to you about increasing the value of your business.


Gokul Padmanabhan

Written by Gokul Padmanabhan

Gokul Padmanabhan has devoted the past 15 years to buying and selling businesses, much of that in the restoration industry. His partnership with Restoration Brokers of America strengthens his hands-on expertise with a national presence and infrastructure that is second to none.