"Frameworks bring insights. And insights bring freedom."
Adam Kreek
Founded Built for Hard
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Beyond Multiples: 6 Proven Frameworks to Diagnose & Drive Enterprise Value
posted in Business Coaching
Adam Kreek
Most business owners assume valuation is just EBITDA × multiple. That’s like calling a symphony “just a bunch of notes.” Let’s look deeper.
Beyond the Multiple: 6 Enterprise Value Frameworks Every Business Coach Should Know
You know me — I hate frameworks for the sake of frameworks. But here’s the truth: enterprise value is a multi-dimensional story. If you only use financials + multiples, you miss the hidden levers and the internal misalignments that shrink value. Over time, I’ve tested and seen success with several systems. In this post, I’ll unpack seven of the most battle-tested valuation / diagnostic frameworks you can borrow, adapt, or combine to guide your clients toward true value—not just sticker price.
I’ll also link to primary sources so you can dig deeper.
1. Value Builder System (John Warrillow / Built to Sell)
Overview:
The Value Builder System is a methodology and platform built around 8 core drivers of value (e.g. recurring revenue, customer concentration, scalable systems, etc.). It produces a Value Builder Score (0–100), benchmarks against peers, and gives a roadmap to improve. The Value Builder System™
Why it matters to you as a coach:
- It gives your clients a clean, digestible way to see “how sellable” their business is today.
- Because the system is widely used, you can benchmark vs. broad industry data.
- It’s packaged (software + training) so you don’t have to build your own survey tool from scratch.
Caveats / watch-outs:
- It can become a “checklist game” if not anchored to deep qualitative coaching.
- Some value drivers may not translate cleanly in highly niche or regulated industries.
- You’ll need to localize or interpret scores for your client’s market context.
Link: Value Builder System
2. EPI’s Value Acceleration Methodology™ (Exit Planning Institute)
Overview:
EPI’s Value Acceleration Methodology (VAM) is a full exit-planning backbone. Its core premise: exit strategy is business strategy. It weaves business, personal, and financial goals into one roadmap, and operates through three “gates” (Discover, Prepare, Decide).
They emphasize that exit readiness is not a future event—you should build value now, not just near the end.
Why it matters to you as a coach:
- It forces you (and your client) to integrate who the owner is / wants to become with what the business is / needs to become.
- The gate structure lends itself well to 90-day sprint rhythms (which aligns with how you love to coach).
- Because it’s well-documented, many professional advisors and CEPA®s use it, giving you credibility via alignment.
Caveats / watch-outs:
- Because it’s broad, sometimes the “business value levers” within VAM stay abstract unless supported by nitty-gritty diagnostics.
- The rhythm and cadence demands discipline (you’ll need to hold clients accountable to execution).
- Not every owner is psychologically ready to think about exit—even if you push them there, they may resist.
Link: EPI – Value Acceleration Methodology
3. PREScore™ & Owner Dependence Index (Warrillow / Built to Sell Inc.)
Overview:
These are companion measures to Value Builder:
- PREScore™ (Personal Readiness to Exit Score): gauges how mentally, emotionally, and financially prepared an owner is to exit.
- Owner Dependence Index (ODI): measures how much the business depends on the owner’s direct involvement (i.e. how “founder-centric” the business is).
Together, they highlight risks in selling: if the owner is burnt out or too embedded, the valuation multiples will get hit.
Why it matters to you as a coach:
- It gives you a surface to talk about the human side of value — not every value destroyer is financial.
- You can use PREScore and ODI as “soft levers” to build confidence, time, and autonomy en route to a sale.
- Helps you calibrate your strategy: pushing someone to scale when they’re emotionally unready is a recipe for failure.
Caveats / watch-outs:
- These are more qualitative than quantitative; you’ll need narrative and coaching to bring meaning to the numbers.
- As with all “soft” metrics, clients may dismiss or resist the results—so be ready to lead with empathy.
Here are some providers who offer PREScore assessments:
And ODI Assessments:
4. EOS Organizational Checkup (Entrepreneurial Operating System)
Overview:
EOS (Entrepreneurial Operating System) includes a “Checkup” diagnostic—about 20 questions across six core components: Vision, People, Data, Issues, Process, Traction. It measures organizational health, clarity, and execution discipline.
While not designed as a valuation tool, many coaches pair EOS with value frameworks because strong operational health supports better multiples.
Why it matters to you as a coach:
- If your client has chaos in leadership, process, or issues resolution, no valuation system will rescue them.
- EOS gives you a shorthand to see where the “leaks” are in execution and alignment.
- It’s already proven and adopted in many scaling firms—so clients may already know the language.
Caveats / watch-outs:
- EOS Checkup is quite generic—doesn’t dig into finances, market, or exit readiness.
- You’ll need to translate the health scores into value levers (e.g. “People” → management bench → risk discount).
- EOS’ discipline requirements (meeting rhythms, discipline) are a hurdle for many owners.
5. McKinsey 7-S Framework
Overview:
A classic in strategy and organizational theory: Strategy, Structure, Systems, Shared Values, Skills, Style, Staff. The 7-S model helps you evaluate internal alignment.
When you spot misalignment (e.g. strategy says “scale,” but systems don’t support scale; or shared values don’t match staff style), you uncover hidden value leaks.
Why it matters to you as a coach:
- As companies scale, many value destroyers are cultural or structural—not financial.
- It gives you a language to diagnose why a client’s “vision” isn’t translating into execution or value.
- You can layer 7-S as a “pre-phase” before more numeric valuation tools.
Caveats / watch-outs:
- 7-S is qualitative, academic—so to make it useful, you need to tie it to concrete metrics or action.
- Clients can resist discussing “style” or “shared values”—these are soft, touchy topics.
- Alone, 7-S won’t give you a value multiple or score. It’s diagnostic, not valuation.
6. Balanced Scorecard (Kaplan & Norton)
Overview:
Balanced Scorecard (BSC) is a performance-management tool. It tracks metrics across Financial, Customer, Internal Process, and Learning & Growth domains. The idea: performance in all of those areas drives long-term value.
While not always built for valuation, many firms integrate BSC metrics into their valuation narrative (e.g. strong internal process = lower risk = higher multiple).
Why it matters to you as a coach:
- It helps you tie strategic goals to operational execution and then to value.
- You can create a custom “Value Balanced Scorecard” for each client, linking strategic KPIs to value outcomes.
- Gives you a dashboard language to review progress, not just a one-time score.
Caveats / watch-outs:
- Too many KPIs kills focus—clients will drown in dashboards if you don’t prioritize.
- BSC is more mid-term execution than exit strategy—so pair it with a value framework.
- If client culture resists metrics, the BSC may sit unused.
Conclusion: Beyond the Multiple, Toward Maximum Value
Most business owners still think exit value is EBITDA × multiple. That’s like saying an Olympic gold medal is just worth the weight of gold it contains. True enterprise value isn’t locked in a spreadsheet—it’s built through systems, people, and strategy.
The truth is, maximizing enterprise value requires deliberate preparation. According to what we like to write on Values Driven Achievement, the businesses that command top multiples do three things well:
- They de-risk the deal by showing predictable cash flow, strong systems, and a management team that doesn’t depend on the owner.
- They highlight intangible assets—brand strength, intellectual property, customer loyalty—that buyers can’t easily replicate.
- They prepare early so the company is attractive and the owner is personally ready when opportunity knocks.
That’s why frameworks like the Value Builder System, the EPI Value Acceleration Methodology, PREScore™, EOS, 7-S, and the Balanced Scorecard matter. They give you structure, language, and a game plan for uncovering those hidden levers of value.
As a coach—or as an owner—you don’t have to use all of them. But you do need a framework to guide your growth, reduce risk, and align your business with the market’s definition of value.
Because here’s the deal: you’re not just selling a business. You’re creating freedom—for yourself, your family, and your team.
Enterprise value isn’t a number. It’s a story. And if you want the best ending, you’ve got to start writing it now.
Read more about building value in your business here.
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Adam Kreek and his team are on a mission to positively impact organizational cultures and leaders who make things happen.
He authored the bestselling business book, The Responsibility Ethic: 12 Strategies Exceptional People Use to Do the Work and Make Success Happen.
Want to increase your leadership achievement? Learn more about Kreek’s coaching here.
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