How do you maximize the valuation of your organization? Certainly, the ability to remain profitable is an important consideration. Another equally important consideration, however, is profit margins. The processes and efficiencies in your organization can have a direct impact on profit margins, and many mobile organizations that manage expenses with traditional tools suffer from a similar set of circumstances that dramatically decrease them.
If your organization is using odometer readings or GPS-based systems to track mileage, for example, it should not be surprising to discover employee mileage rounding errors, overstated business mileage, or in some cases, outright fraud. With it’s new approach to mileage reimbursement, however, SureMileage from CompanyMileage provides an accurate, secure and scalable solution to expense and mileage management. The average CompanyMileage customer is already expected to save 20-30% on mileage reimbursement, which results in an immediate improvement on profits and profit margins. CompanyMileage can also play a crucial role in your organization’s exit strategy by providing the long-term benefit of increasing the valuation.
Recently, a CompanyMileage customer was sold to a public entity for eight times their earnings before interest, tax, depreciation and amortization (EBITDA). Their value at exit had increased in large part due to the efficiencies afforded to business operations through their partnership with CompanyMileage. In fact, this organization was able to utilize CompanyMileage products to reduce mileage costs by over $1,000,000 per year.
Consider your exit strategy. If your organization spends over $100,000 in mileage reimbursement annually and discovers a 20% savings from CompanyMileage, it can mean much more than a cost reduction of $20,000. As many organizations are regularly valued at 10x EBITA, for example, the efficiency from CompanyMileage can also increase your organization’s valuation by $200,000 on exit.
If your exit strategy requires higher profit margins, consider CompanyMileage next. A representative will be happy to provide a spend-and-process analysis to help uncover and resolve the inefficiencies in your mileage and expense reimbursement. To get started and discover more about SureMileage, request a one-on-one demo of CompanyMileage.