How the Business Analytics Report, "BAR" Sets The Bar For Every Business.

So a termite walks into a bar, hops up on a stool and says, “Is the bar…tender here?”

EXIT IQ’s Business Analytics Report (BAR) – A Comprehensive Business Valuation Tool

The Business Analytics Report (BAR) by EXIT IQ is an in-depth business valuation tool designed to assess a company's financial health, strengths, and weaknesses. It provides a holistic view of a business by integrating financial data, credit analysis, benchmarking insights, and non-financial evaluations. The BAR serves as a critical resource for business owners looking to enhance value, attract investors, or prepare for a potential sale.

How the Business is Graded

EXIT IQ’s BAR evaluates the business across seven critical areas:

Business Insights – Assesses overall business performance and market positioning.
Financial – Analyzes financial health, profitability, and stability.
Credit – Evaluates creditworthiness and financial risk.
Benchmark – Compares the business to industry peers.
Foundation – Examines operational strength and internal efficiencies.
Environmental, Social, and Governance (ESG) – Reviews sustainability and corporate responsibility.
Strategic Growth – Identifies long-term growth potential and expansion opportunities.

Detailed Business Analysis Provided in the BAR

1. Financial Analysis

A detailed breakdown of financial performance, including:

Original Financials – Raw financial statements as reported.
Addbacks – Adjustments to reflect true earnings potential.
Normalized Profit & Loss (P&L) – Adjusted financials for clearer comparison.
Finance Balance Sheet – A review of financial liabilities and assets.
Operations Balance Sheet – Analysis of operational assets and liabilities.
Trend Analysis – Identifies patterns and forecasts future performance.
Financial Ratios – Key metrics such as liquidity, solvency, and profitability.
Breakeven Analysis – Determines the sales level needed to cover costs.

2. Cash Flow Analysis

Revenue to Cash Analysis – Examines how efficiently revenue converts to cash flow.
Free Cash Flow – Measures the cash available after operational expenses.

3. Sustainable Growth Analysis

Sustainable Growth Rate (SGR) – Assesses the company’s ability to grow without external financing.

4. Credit Assessment

Credit Risk Scorecard – A scoring system evaluating credit risk.
Credit Risk Ratios – Measures financial stability and borrowing capacity.

5. Benchmarking Analysis

Industry at a Glance Statistics – Overview of industry trends and key metrics.
Local and International Benchmarking Firms – Compares financial and operational metrics against top competitors.

6. Profit Gap Analysis

Profit Gap Analysis – Identifies gaps in profitability and potential areas for improvement.

7. Non-Financial KPI Results

Foundation Scorecard & Ratios – Evaluates business infrastructure and efficiency.
Strategic Growth Scorecard & Ratios – Assesses future growth potential and risks.

8. Non-Financial Commentary

Many business evaluations focus solely on financials, but non-financial factors are equally crucial in determining business value, attractiveness to investors, and overall risk. These qualitative insights provide:

Operational Efficiency Metrics – Evaluates workflows and productivity.
Management & Leadership Evaluation – Assesses leadership strength and succession planning.
Market Positioning & Competitive Edge – Analyzes differentiation within the industry.
Customer & Supplier Relationships – Examines business relationships and stability.

Conclusion

EXIT IQ’s Business Analytics Report (BAR) is an essential tool for business owners looking to understand their company’s value, identify areas for improvement, and prepare for growth or sale. By combining financial analysis with strategic insights, credit evaluation, and non-financial factors, the BAR provides a 360-degree view of a business’s health and future potential.

EXIT IQ