Demo Craft Brewing Co.

1. 02 What your company is worth
2. 03 Executive summary
3. 04 The Integrity Gap
4. 05 What your people say
5. 06 The market and the offer
6. 07 Customers and sales
7. 08 The people
8. 09 The operation
9. 10 The finances and the record
10. 11 The owner and the exit
11. 12 What we checked
12. 13 What you take home
13. 14 The work that raises your value
14. 15 Methodology, scope, and limiting conditions
15. 16 Appendix: the full driver register

What this number is. Enterprise value is the estimated value of the business before cash, debt, working capital adjustments, transaction fees, and taxes. Exhibit 5 shows the proceeds, before taxes, from a sale at this value. Evidence confidence combines, on a 0 to 100 scale, the quality of the earnings basis, how many drivers the assessments cover, the share of cross-checks passed, and the Individual assessment composite. It is not the probability that the estimate is correct.

• The Market Read estimates enterprise value at $2,016,000; after the workforce evidence adjusts the scores it covers, the Organizational Read estimates $2,000,858 (see Exhibit 1).
• The Integrity Gap is $15,142, the amount the workforce evidence lowers the estimate.
• Workforce evidence covered 10 of 23 drivers. None drew a diligence flag. Of the covered drivers, Workforce Quality, Operational Excellence, and Systems / Infrastructure are worth watching. The full register is Exhibit 6.
• Strongest positions: Succession Planning (4.0), Revenue Quality (4.0), Market Position (4.0).
• Weakest positions: Systems / Infrastructure (2.9), Workforce Quality (3.0), Operational Excellence (3.0).
• Assessment priorities, in order: Systems / Infrastructure · Workforce Quality · Operational Excellence · Sales Effectiveness · Customer Relationship Depth. The agenda near the close of this report states the work for each.

1. Systems / Infrastructure, reading 2.9, worth watching. The next anchor: Processes, measurements, and communication run on documented systems a competent outsider could operate. Worked in the operation section.
2. Workforce Quality, reading 3.0, worth watching. The next anchor: Every key seat has skill, tenure, documented training behind it, and a bench developing underneath. Worked in the people section.
3. Operational Excellence, reading 3.0, worth watching. The next anchor: Flow is measured, waste is hunted deliberately, overtime is exceptional, and margins benchmark at or above the industry. Worked in the operation section.
4. Sales Effectiveness, reading 3.3. The next anchor: A documented process with tracked stages, known acquisition cost, and multiple producers closes business predictably without the owner. Worked in the customers and sales section.
5. Customer Relationship Depth, reading 3.3. The next anchor: Every key account trusts multiple people here, ownership is institutional, and expansions are earned across the team. Worked in the customers and sales section.

We walk this agenda with you in the debrief session. Bring a pen, and mark up the working questions under each driver.

What was reviewed. The leadership account was taken in a coached scoring session against anchored 1-to-5 criteria — every score requires the owner’s words as its basis before it saves. Workforce evidence comes from the Six Dimensions assessments, including 12 confidential responses to the organization assessment on this engagement; individual responses never leave the assessment platform, this report only ever sees de-identified aggregates, and any cohort smaller than five people is suppressed entirely. Financial figures rest on the evidence of record at the report date.

How the evidence is weighed. Where workforce evidence crosses a driver, it corroborates or challenges the leadership account, and how much it moves the number depends on how many answered and how closely they agree — a divided or thin sample carries less than solid, well-sampled agreement. Evidence older than six months no longer counts toward the conclusion.

Flags. A driver is worth watching when the workforce evidence and the leadership account differ by 0.75 or more on the 1-to-5 scale, and it draws a diligence flag at 1.5 or more. The comparison uses unrounded scores, so two readings printed to one decimal can appear to differ by slightly more or less than a threshold.

Approaches considered. The conclusion is a market-basis valuation: earnings on the stated basis, adjusted by the scored value drivers. Where the record carries the evidence for them, two independent checks test it: the asset floor, what the tangible assets alone are worth, and debt-service coverage, whether the earnings can carry the debt a buyer would borrow. When earnings do not support a market multiple, the engagement values the business through normalized scenarios and the asset floor instead, and this report says so. No other approach is silently relied on.

Read the analyses as a whole. The two reads, the driver readings, the workforce distributions, and the cross-checks support the conclusion together. Selecting portions of this report without the rest could create a misleading or incomplete view of the valuation.

What this report is, and is not. This is a business valuation for exit planning, prepared by Rich in Thought. It is not an audit, not an appraisal performed under USPAP, not a fairness or solvency opinion, not an offer, and not investment advice. It is the number the evidence supports today, a map of where that evidence is strong and where it is thin, and the agenda that follows from it.

Limiting conditions. The conclusion rests on the evidence of record and the confidential workforce responses gathered for this engagement as of the report date, is prepared solely for the company and its advisors for planning purposes, and should not be used for any other purpose or by any other party. If any stated input proves untrue in any material respect, the conclusion cannot be relied upon. Rich in Thought has no obligation to update this report for events after the report date.

What each driver measures

Revenue Quality

Walk me through how money actually comes in the door. When a month starts, how much of it is already spoken for?

Market Position

Describe your market in your own words. Who buys, who competes, and where is it all heading?

Competitive Advantage

When you win a deal, why do you win it? Tell me about the last three wins.

Customer Concentration

Take your top three customers. What share of revenue do they carry together?

Brand Strength

If I asked your market to name the best company at what you do, how often would they say your name?

Product / Innovation

Put your product line next to the best in your industry. Where does it lead, and where does it lag?

Barriers to Entry

How hard is it, honestly, for someone new to do what you do?

Sales Effectiveness

Walk me through how a stranger becomes a customer here, step by step.

Customer Satisfaction

How do you know, with evidence, that your customers are happy?

Customer Relationship Depth

Pick your five most important accounts. Who inside your company, besides you, does each of them trust?

Workforce Quality

Tell me about the team. If you stepped into any seat tomorrow, would the standard rise or fall?

Innovation Culture

When someone on the floor sees a better way, what happens to that idea?

Leadership

Does your team know where this company is going and how you intend to get there? How would I verify that without asking you?

Cultural Health

Describe the feel of this place on an ordinary Tuesday. Do people bring effort you never asked for?

Operational Excellence

Follow one order through the shop from entry to delivery. Where does it wait, and where does it get touched twice?

Technology Leverage

Where does technology carry weight in this business, and where do people still push what a system should?

Systems / Infrastructure

If you and your leadership left for ninety days, what would the written playbook cover, and what would collapse?

Facilities

Walk me through your physical footprint: condition, capacity, and the lease or deed behind it.

Legal / Compliance

Where could a lawyer hurt this company today? Walk me through anything open or unsettled.

Financial Health

If we opened your financials right now, what story would they tell about the last three years?

Owner Dependency

Take a real two week vacation, phone off. What happens here?

Succession Planning

For each key seat, including yours, who steps in tomorrow and who is being built for it long term?

Exit Readiness

If a serious buyer called Monday, how long until you could hand them a complete, current data room?

Notes: the glossary line is each driver’s opening session question — what the instrument actually asks. The anchor criteria sit in each driver’s section.