How to interpret the report Overall Score driven by a weighted algorithm made up of 32 questions in a total of 8 categories: 1.Financial Performance 2.Growth

How to interpret the report

• Overall Score driven by a weighted algorithm made up of 32 questions in a total of 8 categories:

1. Financial Performance2. Growth Potential3. The Switzerland Structure4. The Valuation Teeter Totter (i.e. See Saw)5. The Hierarchy of Recurring Revenue6. The Monopoly Control7. Customer Satisfaction8. Hub & Spoke

Copyright © 2013 The Sellability Score. Strictly Confidential


• The Financial Performance section is driven by the answers to the following questions:• Q. “In the next 12 months, do you expect your revenue (i.e. sales / turnover) to:”• Q. “Approximately what was your Earnings Before Interest Taxes Depreciation

and Amortization margin (EBITDA or sometimes referred to as profit before tax) in your last complete financial year.

• Q. “What was your company’s annual revenue (i.e. sales / turnover) last year? • Q. When comparing your most recently completed financial year with the

previous year, was your revenue (i.e. sales / turnover)• Q. “Which of the following best describes your approach to financial record

keeping”



• The Growth Potetial section is driven by the answers to the following questions:• Q. “Would you say that your industry is:”• Q. “Thinking about the market share for the products / services that you sell, do

you sell to:”• Q. “Which of the following best describes the typical level of customization which

you offer your customers?”• Q. “Which of the following best describes your business model?”• Q.“Which of the following best describes the possibility of your company selling

more to your existing customers?”


How to interpret the report…continued

• The Growth Potential ...continued:• Q. “If customers were lined up at your door to buy, would you find delivering

FIVE times the current volume of what you sell:”• Q. “Would replicating your business to serve a new geographical area be:”• Q. “Please estimate your influence by calculating the total number of people who

have opted in to receive information from you and/or your company in the form of signing up for your website (e.g. e-newsletter, email mailing list or blog), Twitter "Followers", Facebook "Fans", RSS subscribers or people who have added you to their Google Plus "circles“.



• The Switzerland Structure section is driven by the answers to the following questions:• Q. “What percentage of your overall revenue did your largest customer

represent last year?”• Q. “Which of the following best describes the potential impact of losing your

largest customer. Would your business:”• Q. Please think of the person who contributes the most to each of the

following areas of your business. How easy or difficult would it be to replace them?

• Employee• Customer• SupplierCopyright © 2013 The Sellability Score. Strictly Confidential


• The Valuation Teeter –Totter section is driven by the answers to the following questions:• Q. “How do you typically get paid by your customers:”• Q. “What is your typical gross profit margin? Gross profit margin is defined as

the proportion (percentage) of money left over from turnover after accounting for the cost of goods sold. (For example, if your company sells a product for $200 and it costs your business $80 to buy the raw materials to make your product then your gross profit would be $120 and your gross profit margin would be 60%).”

• Q. “Please select which of the following statements best describes your cash needs:” Copyright © 2013 The Sellability Score. Strictly Confidential


• The Hierarchy Of Recurring Revenue section is driven by the answers to the following questions:• Q. “What percentage of your sales/revenue (i.e. turnover) is “recurring”,

meaning you will have this revenue again next year without having to generate new demand through advertising or marketing:”



• The Monopoly Control section is driven by the answers to the following questions:• Q. “And which of the following best describes the exclusivity of your business

to your customers:”



• The Customer Satisfaction section is driven by the answers to the following questions:• Q. “Please estimate the percentage of your customers who are VERY

SATISFIED with the services/products which your company provides:”• Q.“How often, if at all, do your existing customers refer your company to

their friends and colleagues:”• Q. “In the last 12 months, what proportion of your customers complained in

writing (e.g. email, letter, submission to your website, etc.)?”



• The Hub & Spoke is driven by the answers to the following questions:• Q. “Which of the following best describes your management team?”• Q. Which of the following best describes your company's personal

relationship with its customers?• Q. What percentage of your company’s revenue (i.e. sales / turnover) is

undertaken personally by you or you fellow equity holders?• Q. How would your business perform if you were out of action for 3 months

and unable to work? Would it:


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How to interpret the report Overall Score driven by a weighted algorithm made up of 32 questions in a total of 8 categories: 1.Financial Performance 2.Growth