What Gets Measured Gets Managed: Why You Must Measure Business Valuation
Peter Drucker famously said, “What gets measured gets managed.” It’s one of those truths that cuts through the noise. We apply it to sales, marketing, operations, and finance—so why not valuation?
Here’s the reality: If you don’t measure the value of your business, you can’t manage to it.
And if you can’t manage to it, you’re flying blind when it comes to the most important metric of all: what your business is actually worth.
You Manage What You Measure—So Start Measuring Value
Most business owners can tell you their revenue, gross margin, and net profit off the top of their head. But ask about enterprise value—and more often than not, you get a shrug.
That’s a massive problem.
Why? Because value is the one number that ultimately determines your freedom, your options, and your legacy.
If you wait until you’re ready to sell to find out what your business is worth, you’ve waited too long. You risk:
Being shocked by a low valuation
Missing out on strategic sale opportunities
Leaving wealth on the table for someone else to harvest
Valuation Is Not a Mystery—It’s a Metric
Business valuation isn’t just for the day you sell. It’s a strategic benchmark that you should monitor regularly. Why? Because it’s built from components you can control:
Value = EBITDA × Multiple
EBITDA reflects your earnings (real cash flow).
The Multiple reflects the perceived quality of your business—its attractiveness, readiness, and risk.
Both of these numbers are directly influenced by how well you operate your business. Which means you can manage to value—if you’re measuring it.
Why Businesses Get Blindsided
One of the most common regrets I hear from former business owners is this: “I wish I had spent more time preparing.”
That’s because over 50% of business exits are unplanned—triggered by death, disability, divorce, or disagreement. If you don’t know your value and aren’t actively improving it, you may be forced to exit at a fraction of what your business could be worth.
In fact, UBS research found that 81% of business owners who sold their business wish they had done more to prepare.
Measure → Accelerate → X________
At Value Creation Engines, we use a three-phase process to help owners proactively build value:
Measure You need a clear, accurate picture of your current valuation and your best-in-class potential. This becomes your strategic dashboard for value growth.
Accelerate Once you know the gaps, you can activate the Four Value Creation Engines—Revenue Growth, Process Optimization, Culture Development, and Strategic Innovation—to increase both profits and multiples.
X_________ = eXit, eXpand, or eXtend Whether you want to sell, acquire, or transition to a new generation of leadership, measuring value puts you in control of your future.
Final Thought
If you want to manage your business to value, you must begin by measuring it. Without a valuation benchmark, you’re guessing. And when it’s finally time to transition, you risk being surprised—and not in a good way.
What gets measured gets managed. So measure what matters most.
Learn more about how to get a market-based valuation that shows you the current and potential value of your business (along with what's standing in the way) at measure.valuecreationengines.com
Make it a habit. Update it quarterly. And use it as your North Star to drive toward the business—and the future—you truly want.
Originally published on Darrell Amy's LinkedIn.
