Advisory
Overview
With over 50 years of business experience, TMV Business Group’s Advisory Services specialize in the areas of Leadership, Finance, Marketing, and Operations.
We help a diverse range of clients with a diverse range of needs. Our goal is to work closely with the business owners and management teams to build strategies that can be executed successfully across key areas of an organization to increase performance metrics and brand value.
Our advisory services specialize in companies with revenues up to $20 million, and who have a goal to increase sales, improve profit margins, and enhance shareholder value. We are confident that TMV Business Group Advisors can make a significant impact on your business.
Process
Business Profitability Assessment
Our advisory approach begins with a comprehensive review of your business to identify gaps and weaknesses. We then work with our clients to implement strategies that drive value, are scalable, and are sustainable in the long-term.
TMV Business Group’s advisory services are designed to assist business owners from early stage growth businesses to those that are considering exiting their business in the next 12 – 24 months.
The Most Important Number for Your Business
As our clients work to achieve top market value for their businesses, there is a need for solid data on the true state of the business. While financial statements can reveal a lot, we wanted to provide our clients a more actionable and complete picture of a company’s worth as they plan for an exit or seek additional financing.
To that end, we offer all of our clients the opportunity to receive additional insight provided by a Total Enterprise Value Opportunity (TEVO®) Score. The score shows them where they are in terms of value and performance, where they could be and how to get there through increased performance and reduced risk.
A TEVO® Score uses a predictive analytics engine blending financial and non-financial data to quantify the opportunity gap between a company’s current and potential value. The scores are issued by InfoVera, a market value reporting agency.
Learn Your Market Value
The TEVO® Score helps business owners understand the market value of their company by indicating the current and potential multiple, which is the estimated enterprise value based on revenue or EBITDA. Once they have a good understanding of the value of their company—and the language to discuss it—business owners gain confidence and control in business interactions and negotiations, strengthening their position and widening their options. Increased knowledge of their companies helps owners better evaluate options available to them, enabling them to focus on those with the highest return to the business, and freeing up time consumed by lower priorities.
Improve Business Performance
The TEVO® Score is calculated using 55 different performance triggers comparing similar businesses in five key areas of business performance. Similar to a FICO score for personal finances, business owners can see exactly how they score in each of these areas and how those scores compare to their industry peers. The score allows an owner to target specific ways to improve business performance and ultimately company value.
Five Key Indicators
The TEVO® Score is a standardized way to value private companies using a multiple as an indication of what an owner can potentially sell the business for today. Better scores across these key performance indicators will maximize a multiple within an industry range. The score spans five key performance indicators:
- Financial Analysis: Strength and reliability of your numbers
- Business Systems and Processes: Infrastructure and the ability to deliver
- Base Business: Diversification of customers and sales force
- Management Team: Reliance on the owner and overall strength of leadership
- Opportunities: Growth, margin, integration and expansion
FAQs
Frequently Asked Questions
Advisory Frequently Asked Questions
If you run a business, then it’s probably safe to say yes. In fact, you may require more than one business plan: one for raising capital and one for running your business. The former is a compact, easily digested strategic document that is designed to persuade potential investors to show interest in your business. The latter is a more detailed document serving as a day-to-day roadmap, detailing the tactics supporting your overall strategy. The former needs to be an attractive document that sells; the latter can be a collection of spreadsheets, lists, research summaries, and other documents stuffed in a binder that you refer to and update on a regular basis.
You’ve worked in your industries for years so we’re not going to pretend to know about your industry than you do. However, we take pride in our ability to learn the fundamentals of virtually any industry or technology quickly. Some of the markets we’ve worked with include retail, technology, manufacturing, healthcare, aviation, insurance, and professional services. Having said that, we believe that the value we bring to the table is not industry expertise — which you already possess in abundance — but rather an understanding of what grows businesses and what investors like to see in a potential opportunity.
The sooner the better. The ideal time to develop an Exit Strategy for your business is when you start or purchase a business. However, industry statistics indicate that 85% of all business owners do not have a defined exit strategy although, on average 75% of their net worth is tied up in their business.
TEVO Frequently Asked Questions
TEVO® Score measures approximately 55 components within 5 key areas of business: Financial Analysis, Business Systems & Processes, Base Business, Management Team and Growth & Opportunities. Each of the 55 components and the 5 areas is weighted, giving you a true customized value for YOUR company. InfoVera uses a proprietary algorithm that customized this predictive analytical tool. By using your company’s NAICS code(s) and the size of your company, the TEVO® Score platform alters the weighting of each of the components (and therefore the 5 areas) to create a true fit to more precisely value your business.
The most important factor in knowing and tracking your TEVO® Score is that it is a direct indicator of your company’s multiple. By improving your TEVO® Score, you are also, by definition, improving your company’s worth. By making such improvements in your business, you also make your company more efficient, more viable and more self-sustaining.
EBITDA is a measure that represents a company’s total Earnings Before Interest Taxes Depreciation and Amortization are subtracted out. It is a performance measure widely used in buying, selling or otherwise valuing a small- and mid-market company.
TEVO® (Total Enterprise Value Opportunity) Score measures a company’s ‘going concern’ and is a direct indicator of the multiple used to value that company. Similar to how FICO measures a person’s credit worthiness, the TEVO® Score measures a company’s viability. Your company’s TEVO® Score directly indicates your company’s multiple and therefore determines your current company’s value. And TEVO® Score is the best benchmarking tool for growing company value. TEVO Score spans 5 key performance indicators: Financial Analysis, Business Systems & Processes, Base Business, Management Team and Growth & Opportunities. Most other scoring platforms only score based on the financial analysis, but with TEVO® Score, that leaves a lot of a company’s value story out of the picture. Scores are issued by InfoVera, a market value reporting agency.
There are two easy ways to find your NAICS code. You can find your code in the upper left hand corner of the first page of your company’s tax return or visit https://www.naics.com/naics-search-results. Here you will be able to put in keywords to help you find your Industry code. Some companies may have more than one NAICS code. In this case, it is necessary to know what percentage of your business revenue represents. For example, a restaurant with a bakery inside of the same location could be: Restaurant 722511 for 75% and Bakery 311812 for 25%.
