Categories
Sales Growth

Recurring revenue as a valuation-driver

Businesses with a high repeat client base tend to have higher valuations. As the entrepreneur is contemplating a sale, the measurement – and implementation of a strategy to maximize the value of repeat clients is therefore an important activity prior to finalizing a valuation and going to market. Depending on the type of business, a […]

Categories
Acquisitions

Assessing the relative value of a target

Once a target has been identified, and well before the go/no-go decision is made, a relative assessment of the target’s value has to be made. Generally, that’ll involve a consideration of the business on its perceived merits, but consideration needs to be given to competitive strategy as well. This worksheet will give you what you […]

Categories
Acquisitions

Is the business getting fair market share?

Is the business realizing its fair market share? The power in knowing – even estimating – this information, is in identifying opportunities for growth by product line, as well as (for acquisitions) identifying correct pricing for a business. The worksheet below is a simple way for to calculate market share, based on total customers (not […]

Categories
Sales Growth

Distribution & JV’s

The ability to sell more can very often depend on the size and engagement of your distribution channels. Strategic decisions include size of the channel, geographic coverage, targeting, sales and marketing capability, and more. How effective are your current distribution channels? Are you missing certain profitable geographic segments? How engaged are your channel partners? We […]

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Acquisitions Not for Profits

The limits of organic growth

An acquisition is a method of strategic growth. As such, its reasonable to factor organic growth – the ‘steady as she goes’ approach into the discussion, and assess best-case scenarios for growth. Would selling more help you significantly? Would increasing your average selling price help? The answer of course is that each will help…but the […]

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Not for Profits Sales Growth

Recurring revenue programs

Companies with a higher share of recurring revenue tend to have higher valuations. Our Stratum Five group our clients maximize their potential, by developing high-value, client-centric recurring revenue businesses and business models. We have expertise with recurring revenue business models including: Retainer/contract fees Interest Insurance Subscription/memberships Licensing Acquisitions Partnerships and JV’s Every model improves client-engagement, […]

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Acquisitions

Will the acquisition work?

Considering an acquisition? This typology of successful acquisitions will arm you with the confidence to continue with the plan, or search for an alternate target (“Yes” responses indicate greater likelihood for success).

Categories
Acquisitions

Assessing viability of multiple options

When you’re faced with the situation of having too many options, the best way to plot the path forward is to assess the net present value (NPV) of the cash generated of each option under consideration. By determining the NPV of the various options, executives get the truest insight into the impact of each project/path, […]

Categories
Acquisitions Sales Growth

Can growth be achieved in the target company?

Because the whole point of an acquisition is the accretive growth, the ability of the target company to not just maintain, but grow, will be a critical factor in the final go/no-go decision. The Sales Team Productivity Planner helps prospective acquirers envision growth strategies prior to the acquisition, to arrive at a reasonable offer. …run […]

Categories
Sales Growth

Are we clear on our buyer?

One of the most consequential decisions that your team can make is deciding ‘who is our buyer?’…the target market. It’s important to get right, but you’rer not dead-in-the-water if you don’t get it quite right…it’s always changeable (it just costs more money). Here’s a framework to help Boards and managers zero-in on the most profitable […]