Get Paid First

Most owners assume growth is the goal. More customers. More revenue. More staff.
And they’re right. Buyers do reward growth. But they pay a premium for companies that grow while keeping a positive cash flow cycle.

More than 80,000 business owners have completed their Value Builder Score Report, offering a window into how they think about money inside their companies. One of the questions on the intake questionnaire asks owners to “Select the statement that best describes your cash needs,” with four options:

1. We regularly or occasionally raise or borrow money.

2. We keep excess cash as a rainy-day fund.

3. We distribute excess cash to shareholders.

4. Unsure.

The results reveal something telling; Owners who maintain excess cash receive acquisition offers that are, on average, 25% higher than those who don’t. It’s a reminder that cash creates confidence and buyers pay a premium for businesses that show it.

That’s a lesson Stan Markuze learned when he co-founded Joyride Auto, a marketplace for impounded vehicles.

Before Joyride, buying auctioned cars was painfully outdated. Every other Wednesday, a few local dealers would gather in a parking lot to bid on abandoned cars. Stan and his partners moved the process online and, more importantly, re-engineered how the money flowed.

Each car sold for about $1,000. Joyride added a 15% buyer’s fee, charged up front. The tow yard got paid later, when the buyer collected the car. Joyride got its cut immediately.

No inventory. No receivables. No waiting.

Within two years, the company was generating millions in revenue with fewer than twenty employees. When a private equity firm acquired Joyride, they paid roughly seven times annual revenue — thanks to its positive cash flow cycle.

By collecting before delivering, Stan was able to fund growth from profits instead of investors, keeping more of his equity until the exit.

Why Buyers Love Positive Cash Flow

A business with a positive cash flow cycle collects money before it spends it.
That means faster cash conversion, less capital at risk, and the freedom to grow without taking on debt or dilution.

Buyers prize these businesses because they can scale without sucking up cash. The faster a company turns sales into money in the bank, the higher its valuation.

For your own personalised Value Builder assessment simply follow this link:

https://score.valuebuildersystem.com/business-performance-uk/ron-maycock

or get in touch to discuss how to optimise your business value.