Franne McNeal breaks down financial performance into three parts: revenue, profit margins, and the credibility of your numbers. An external audit is a simple way to prove your financials can withstand buyer scrutiny and boost your company's valuation.
Hi, I'm Franne McNeal, and there are 8 key drivers that drive the scalability of a company. The first one is financial performance. Financial performance is easy to understand and very difficult to deliver. Your financial performance is made up of 3 things, 2 obvious and 1 hidden. The first 2 are your top-line revenue and your bottom-line profit. The 3rd hidden element is the quality of the reporting of those numbers. So to drive up your business value score, you should focus on your top line, your bottom line, and consider investing in an audit or some way to make sure those numbers are defendable. Why an audit? Well, because a buyer is going to come in and say, great, you've got these numbers, but how defendable are they? And what third party has come in to really scrutinize those numbers. Investing in an audit is one simple way to improve your financial performance.
