Presilium Private Wealth

BV 18 - Revenue Isn't The Same As Value


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Most business owners measure success the same way they did in year one: revenue. But when it comes to what your company is actually worth, buyers care far more about reliable cash flow and predictability than top-line sales.

In this episode of Building Value, Brook breaks down why two companies can produce the same revenue and still have dramatically different enterprise values—and what you can do about it. You’ll learn the key metrics that create stability, reduce risk, and increase your options as an owner: recurring vs. one-time revenue, gross margin consistency, and customer retention.

In this episode:

  • Revenue is a vanity metric if cash flow is inconsistent.
  • Buyers reward businesses with predictable income and lower risk.
  • Two companies can have identical revenue and totally different valuations.
  • Track recurring revenue vs. one-time revenue to understand stability.
  • Gross margin consistency is a signal of control and operational discipline.
  • Customer retention drives repeatability and smoother cash flow.
  • Internal scorecards help you manage the business—not just run it.
  • Clarity in metrics helps you course-correct before problems compound.
  • Better metrics = more options (growth, hiring, pricing, exit, etc.).

If you want more clarity, better decision-making, and a business that’s easier to operate (and potentially easier to sell), this episode lays out the practical steps to start tracking what matters.

#BusinessValue #CashFlow #Entrepreneurship #BusinessGrowth #BusinessMetrics

Connect With Brook: Brook Hart, CFP®, CEPA®

President & CCO, Presilium Private Wealth

Email: [email protected]

LinkedIn: linkedin.com/in/brook-hart Meet Brook: https://www.presiliumpw.com/team_member/brook-hart-cfp/

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This Video is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product or services.

The content of this Video is provided solely for your personal use and shall not be deemed to provide access to any particular transaction or investment opportunity. Presilium Private Wealth does not intend the information in this Video to be investment advice, and the information presented in this Presentation should not be relied upon to make an investment decision.

Any third-party information contained herein was prepared by sources deemed to be reliable but is not guaranteed. Investment advisory services are offered through Presilium Private Wealth, a SEC Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser or investment adviser representative has attained a particular level of skill or ability. Additional information about Presilium Private Wealth is also available on the SEC’s website at www.adviserinfo.sec.gov.

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Presilium Private WealthBy Jerry Davidse