WTF? / Part 6 / 6.5
What is enterprise value?

Enterprise value

THE 30-SECOND ANSWER

Enterprise value is what the whole business is worth to a buyer, independent of who owns it or how it is financed.

In plain English

Buyers pay for provable, transferable earnings. Clean books, documented processes, supplier relationships held by the company and staff who can run without you all raise it.

Income that cannot be proven is worth nothing in a sale, however real it was.

Example

Two businesses earn the same. The one with audited statements and written SOPs sells for materially more.

Why it matters

Everything Blueprint teaches about legitimacy shows up here, at the end, as price.

COMMON MISTAKERunning a business for years on numbers only the owner understands.

YOU'RE APPROACHING THE EDGE OF THE PUBLIC BLUEPRINT.

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