Deconstructing Your Trail Book's Value
This interactive dashboard translates complex valuation principles into an actionable tool. Explore the key quantitative and qualitative drivers that determine the true worth of your most valuable asset.
The Foundational Valuation Formula
Every valuation starts here. This simple equation is the market standard, but its power lies in the variables. Interact with the components below to understand their role.
Market Multiples: A Decade of Growth
Valuation multiples aren't static. Driven by industry consolidation and high demand, they have seen a powerful upward trend, making quality trail books an appreciating asset class.
Valuation Health Dashboard
A premium valuation is built on excellence across key metrics. Click on each driver below to explore the data and see how a 'Premium' book compares to an 'Average' one.
➔ Run-Off Rate
The core stability metric. Measures the natural decay of your loan book. Lower is significantly better.
➔ Net Book Growth
The litmus test for business health and momentum, after accounting for run-off.
➔ Risk Profile
Metrics like arrears, clawbacks, and loan seasoning that buyers scrutinize.
➔ Client Portfolio
The human asset. Demographics, location, and equity are key value drivers.
➔ Structural Integrity
How your book is constructed. Lender diversity is critical to de-risk your income.
➔ Operational Excellence
The non-negotiable factor. High-quality CRM data is the foundation of value.
Transaction Essentials
Independent Valuation
Essential for any formal transaction to establish a credible, defensible asking price.
Tax & Accounting
Understand the "Profit Emerging Basis" and how a non-deductible capital outlay impacts a buyer's offer.
Aggregator Approval
A critical first step. The sale is contingent on their consent. Engage early and maintain open communication.