Scorecard - Scoring and Valuation Model
Originally published: 15/03/2020 21:33
Last version published: 12/04/2020 16:58
Publication number: ELQ-15241-2
View all versions & Certificate
certified

Scorecard - Scoring and Valuation Model

Scorecard / scoring model to help valuation, target assessment and visually see strengths and weaknesses of a business

Description
This best practice scoring model will allow you to grade a company or a project over 25 attributes broken down in 5 categories (you can of course modify the model and increase that number if you'd like).
Every attributes is assessed and given a value that you can personalise (eg. market size => 100k, 500k, 2m, 5m >10m) and each category is correlated to a grade (by default, from -2 up to +2)

Once you have decided on all your attributes and personalised their value, I have also included a column where you will select the respective weight you believe of each attribute should have in the total grade. For instance if you think that revenue growth should have twice as much importance as number of product types, then you can choose a weight of 1 for product type and 2 for revenue growth.

The model will then automatically generate a Grade bridge showing the impact of each attribute to the overall grade. To make it more visual and clear, the bridge shows the grade on a scale of -100 to + 100 which allows to clearly see the negative impact of the attributes with weak values.

The model also includes a spider web chart showing strengths and weaknesses of the target by category.
Finally in the last section, in the case where you want to use the scorecard to value a company, the overall grade allows you to narrow down the multiple (of revenue, ebitda etc.) you want to use based on the range you provide.

This Best Practice includes
1 excel file with 4 tabs

Acquire business license for $5.00

Add to cart

Add to bookmarks

Discuss

Further information

Help rationalise the assessment of a project or business based on several criteria and a customisable grading system. Help investor narrow down their valuation multiple based on their assessment of the target

If you are looking for a good way to rationalize your thoughts on a company or a project and want to combine the different pieces of information you have and turn it into a grading system.


5.0 / 5 (1 votes)

please wait...