50 Point Audit
1. Increasing Top Line Revenue
Revenue is increasing
2. Steady or growing Earnings as % of Revenue
Earnings increasing
3. Controlled and Lean SGA
List of all SGA expenses
4. Maximized Direct Cost Utilization
Direct Cost expenses
5. Balanced Payroll ratios
Payroll expenses
6. Receiveables
data on receivables
7. Payables
8. Upward Trending Book Value
9. Books in good order
10. Debt Distribution on Balance Sheet
11. Bad Debt
12. Assumable loans
13. Leveragable unincumbered assets
14. Intra Family Loans
15. Positive Return on Capital Invested
16. Use of Line of Credit for Operating Expenses
17. Pricing of Goods/Services at least in line with COLA
1. Employee Benefits lean but not austere
2. Limited and/or controlled Nepotism
3. Low employee turnover
4. High Employee Morale
5. Contracts/Non-Competes Key Employees
6. Steady supply of skilled labor in the local market
7. Regular Employee Performance Review System in Place
8. Written and Current Human Resources/Training Manual
9. Key Knowledge Distributed to Top Management
1. Written and Current Operations Manual
1. Written and Current QA Manual
2. Service or Product Diversibility
3. Stable and Able Management
4. Sound Service or Product that is in Demand
5. Cash Reserves
6. Expanding Industry
7. Increasing Marketshare
8. Scalability/Expandability
9. Unique Selling Proposition and/or IP
10. New/Modern Equipment
11. Efficient Operational Processes
12. Ability to achieve at least 15% annual growth rate
13. No actual or threated Litigation
14. Market rates on Leases and Loans
15. Physical Appearance of plant, offices in clean condition
16. Robust and formalized Marketing and Sales program
17. Diverse spread of client revenue
18. Low product return rate, <3%
19. Inventory Organization and Turnover
20. Profits reinvested into growth
21. Stable and Understandable Regulatory controls on company
22. Efficient Distribution of Services/Products process
23. Efficient and Up to Date IT Systems and Use