A Great Metric Could Mean A High Company Valuation
As a company owner or CEO, ask yourself this question – if today you announced to your customers that your business is closing its doors and no longer available to accept new orders, how many minutes, hours, days, weeks, months or years would it take them to find a replacement for what they have been purchasing from you?
Your Shut the Door metric is low if the answer to this question is minutes, hours, days or weeks. Your metric will increase if your answer is months or even years. And generally, the higher your Shut the Door metric, the greater your company value in the eyes of a potential acquirer. This is because acquiring your business would come with a strong predictability of future revenues, and acquirers place great value on this as they determine what to pay to acquire your company.
Give us a call and we can help you get this critical metric in place for your company and we can also help you with ideas for how you can increase this metric for your business.