Grow Your Company’s Value with TEVO® Score
Get Your Free TEVO Score
Every CEO will at one time or another ask the question, “What’s my company worth, and how can I grow that value?” The TEVO® Score helps answer this question.
What is a TEVO® Score?
Think Zillow or your FICO score but for private companies.
TEVO® stands for Total Enterprise Value Opportunity. TEVO® Score measures the viability of your company and provides an objective, third-party value score. With that score, and the methodology behind it, you can learn what to do to grow the value faster.
Just as monitoring your personal credit score (FICO) reveals how your actions help or hurt your credit score, your TEVO® Score measures your company’s viability and reveals how to make your company worth more. It uses a predictive analytics engine blending financial and non-financial data to measure the gap between your company’s present and potential value.
The TEVO® score has the same scale as your credit score and, like FICO, it is comprised of 5 weighted factors:
- Financial Analysis – The strength and reliability of the numbers
- Business Systems and Processes – Infrastructure and the ability to deliver
- Base Business – The diversification of customers and sales force
- Management Team – Reliance on the Founder/CEO and overall strength of the leadership
- Opportunities – Growth, margin, integration and expansion
A TEVO® Score is the only standardized way to determine your company’s multiple and will be used by institutions to make decisions about your company (i.e. banks, lenders, insurance underwriters, etc).
What can you do to improve your TEVO® Score?
Since your TEVO® Score gives you insight into your company’s past, present, and future, you can use it as an opportunity to analyze future opportunities to increase company value. You need to look at where the company is going, and make that visible to outsiders looking at your business for investments, partnerships, potential buyers, etc.
How does your TEVO® Score help maximize your business valuation?
You can’t maximize your business value if it is unknown! Your TEVO® Score provides a standard way to make your multiple known and through that, the market value of your business known. This tool provides you the knowledge of your current valuation, potential future valuation, and the opportunity gap in-between. When you increase the understanding of your business and know the factors that impact your multiple, you are able to take the necessary actions to maximize your valuation.
We Can Help
If your business is ready to learn its market value and TEVO® Score, we can help. The first step is collecting the data needed to develop your score. You can do that via this form or by contacting us at office@ceotoceo.biz or (925) 829-8190.
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).