TEVO® Frequently Asked Questions

How is my score calculated?

TEVO® Score measures approximately 55 components within 5 key areas of business: Financial Analysis, Business Systems & Processes, Base Business, Management Team and Growth & Opportunities.  Each of the 55 components and the 5 areas is weighted, giving you a true customized value for YOUR company. InfoVera uses a proprietary algorithm that customized this predictive analytical tool. By using your company’s NAICS code(s) and the size of your company, the TEVO® Score platform alters the weighting of each of the components (and therefore the 5 areas) to create a true fit to more precisely value your business. 

Why does my score matter?

The most important factor in knowing and tracking your TEVO® Score is that it is a direct indicator of your company’s multiple. By improving your TEVO® Score, you are also, by definition, improving your company’s worth. By making such improvements in your business, you also make your company more efficient, more viable and more self-sustaining. 

What is EBITDA?

EBITDA is a measure that represents a company’s total Earnings Before Interest Taxes Depreciation and Amortization are subtracted out. It is a performance measure widely used in buying, selling or otherwise valuing a small- and mid-market company. 

What is TEVO®?

TEVO® (Total Enterprise Value Opportunity) Score measures a company’s ‘going concern’ and is a direct indicator of the multiple used to value that company. Similar to how FICO measures a person’s credit worthiness, the TEVO® Score measures a company’s viability. Your company’s TEVO® Score directly indicates your company’s multiple and therefore determines your current company’s value. And TEVO® Score is the best benchmarking tool for growing company value. TEVO Score spans 5 key performance indicators: Financial Analysis, Business Systems & Processes, Base Business, Management Team and Growth & Opportunities. Most other scoring platforms only score based on the financial analysis, but with TEVO® Score, that leaves a lot of a company’s value story out of the picture. Scores are issued by InfoVera, a market value reporting agency.

How do I find my NAICS Code?

There are two easy ways to find your NAICS code. You can find your code in the upper left hand corner of the first page of your company's tax return or visit https://www.naics.com/naics-search-results. Here you will be able to put in keywords to help you find your Industry code. Some companies may have more than one NAICS code. In this case, it is necessary to know what percentage of your business revenue represents. For example, a restaurant with a bakery inside of the same location could be: Restaurant 722511 for 75% and Bakery 311812 for 25%.

How can I redo my score if my numbers have changed or are incorrect?

Contact Toby Gilman at tgilman@pmbhd.com or by phone at 512.583.2906 to see about getting a new TEVO® report.