Know Your Score and Name Your Price - Article

Article on: GBI provides a snapshot of how world class food and retail companies measure their operational improvements in order to command a premium price with a potential buyer.

“In God we trust, everything else we measure"

- Chief Operating Officer of UPS Delivery Service

In this post, we will show a basic yet standard industry Balanced Scorecard which is used to measure and monitor improvements in operations. By showing a positive improvement in operations year after year, an owner can better show the value of the organisation to potential Private Equity or High Net Worth buyers so that you can command a premium multiple of EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization).

By operating at full potential, maximum value can be earned when selling. Earlier we asked the question “Do you think potential purchasers of your business want to buy a car that doesn’t run properly?” Food and retail owners have to make sure their car is running like a well-oiled machine before a buyer is going to want to pay top dollar for it.....

Click on the title to read the rest of the artcile. This article was published the 'Restaurant Magazine' August 2009.