The Valuation You Don’t See
Courts and buyers don’t reward narratives; they reward predictable cash. The most persuasive valuation work converts risk stories into numbers—then shows how you’ll reduce those risks in the next few weeks. A simple four-week grid is often enough to demonstrate momentum.
Translate risk → numbers
If customer concentration is high, price it in the multiple and show a counter-measure plan (e.g., top-10 renewal timing and floors). If property is special-use, treat it as integral and avoid internal rent double-count. If AR > 60 is heavy, show the interest cost and put cadence on it. Each risk should appear in discount/cap rates, multiples, or explicit sensitivities.
Run a four-week grid
Week 1: pricing hygiene (realized vs list by rep/SKU).
Week 2: AR > 60 (dispute codes, top 10 past-due).
Week 3: customer durability (renewal calendar, floors/ceilings, termination terms).
Week 4: risk-pricing alignment (do discount/cap/multiples reflect reality?).
Keep it visual. One owner per lever. One metric each. Review weekly. Rotate levers if stuck—but keep the cadence.
Why this changes valuation
Predictable cash earns better multiples because the buyer’s risk is lower and integration is easier. In litigation, this approach improves credibility—your model isn’t asking to be believed; it’s showing how risks are being managed.
Call to action
Ask for my four-week findings→actions template: sanjay@sankulinc.com (subject “GRID”).
About Sanjay: Sanjay Kulkarni, CBV, CFA, CPA (CA-I),
C.Dir, is a Toronto-based Chartered Business Valuator and Fractional CFO with
25+ years of experience helping privately owned businesses, PE/VC, and
family-law matters across Canada. Email: sanjay@sankulinc.com · Sites: SankulInc.com
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