As a tax professional, bookkeeper, or business advisor, you know the numbers tell a story. But sometimes, even the best financials don’t translate to the best outcomes—especially when it’s time to sell a business.
That’s why it’s critical to go beyond the books and help clients understand what buyers are really looking for.
A Cautionary Tale: $19 Million in Revenue, But a Modest Multiple
Sean McAuliffe ran a strong company. His car key fob distribution business brought in nearly $19 million in annual revenue. Margins were healthy. Growth was steady. He had even created a proprietary brand—Keyless to Go—and registered his products with the FCC. On the surface, everything looked solid.
So why did Sean only get about 4x EBITDA when he sold his company—a relatively low multiple for a business of that size?
Dependency.
His business depended heavily on overseas suppliers for manufacturing. He didn’t control the factories. He didn’t own the supply chain. And that made buyers nervous.
The Lesson: Revenue Is Good—But Resilience Is Better
No matter how impressive your top line is, dependency kills valuation. Whether it’s over-reliance on a single supplier, customer, or key employee, any bottleneck reduces a business’s appeal to potential buyers.
That’s where The Switzerland Structure, one of the eight drivers of business value measured by The Value Builder System™, comes into play. It evaluates how dependent a business is on any one stakeholder. Buyers pay more for companies that have independence built in.
As a trusted advisor, you can help your clients identify these hidden weaknesses—and fix them before they become deal-breakers.
The Flip Side: Why Monopoly Control Pays
Now contrast Sean’s story with businesses that own their product, brand, or delivery model. These companies have what we call Monopoly Control—and according to data from more than 80,000 businesses evaluated by Value Builder, they’re 40% more likely to receive acquisition offers.
Monopoly Control doesn’t mean being the only player in the market. It means having something that buyers can’t easily replicate or replace, like:
- Proprietary products or services
- Exclusive contracts or distribution rights
- In-house production or manufacturing
- A defensible brand with loyal customers
- Intellectual property or technology ownership
In short, when your client controls their customer experience end to end, they create a business that’s more attractive—and more valuable.
How You Can Help Your Clients Increase Their Valuation
As a Universal Accounting-trained professional, you’re uniquely positioned to go beyond compliance and offer strategic consulting. Here’s how you can help clients build a more valuable, sellable business:
1. Conduct a Dependency Audit
Help your clients assess risk areas: Are they overly reliant on one vendor, employee, or client? Could that relationship collapse or shift? If yes, start planning for diversification.
2. Encourage Supply Chain Control
Even if full vertical integration isn’t feasible, look for ways to gain more control—exclusive agreements, backup suppliers, or even exploring private labeling or in-house production options.
3. Advocate for Brand Ownership
Support your clients in building brand equity: trademarks, customer data ownership, and direct customer relationships all boost value in the eyes of buyers.
4. Educate on What Drives Valuation
Your clients might think it’s all about profit. You can show them how independence, consistency, and proprietary advantages affect their exit multiple just as much as financials.
5. Introduce Value Builder Consulting
Use tools like the Value Builder Score™ to quantify your clients’ strengths and weaknesses and help them create a roadmap toward a more valuable business.
Final Thought: Don’t Just Report the Numbers—Help Clients Improve Them
Sean McAuliffe built a strong business. He executed well, and his sale still created life-changing wealth. But with more control over key parts of the business, he likely could have walked away with much more.
As a bookkeeper, tax preparer, or business advisor, your role doesn’t stop at recording history. You can help clients create a future where they capture the full value of what they’ve built.
Call to Action:
Want to help your clients increase their business value before they sell—and earn more for your advisory services in the process?
Call 435-344-2060 to speak with a Universal Accounting Advisor about becoming a certified Profit and Growth Expert. Learn how you can guide your clients to stronger businesses, higher multiples, and better exits.
