– valuation drivers –

Scare the Bear Capital
Valuation Drivers

1. Leadership Team Structure and Development
Investors buy contracts, people and solutions but they pay a premium for a well balanced, well trained leadership team that can best position them for success

2. Financial Systems and Processes
Private equity firms are money managers and your way of communicating in their language is through your financial system and the business metrics. Does your financial system communicate in their language?

3. Incentive Compensation Programs
Your investor values deferred compensation, equity compensation and other incentive programs to align goals. Do you? Prove it!

4. Growth Strategy AFTER Exit
The decision to pay you a premium for your business relies on what type of premium your PE investor can get in THEIR exit. How clear is this path?

5. Banking Relationships
O.P.M. …. (Other Peoples Money). The firm on the other side of the table has perfected this approach. Do you understand how to take advantage of OPM? Show your buyers!

6. Talent Acquisition Capabilities
The war for talent is real and how your recruit today may not be scalable. Creating a capability of recruiting top talent is a corporate skill that makes your business more valuable. How scalable is your TA function?

7. M&A Experience and Process
Experience always demands a premium. What is your M&A story and how can you improve it?

8. Entrepreneurial Growth Story
How you got started, your passion for growth and success and how that resonates throughout your firm matters. Acquirers want to invest in people and leadership. Tell your story

9. Marketing and Branding
How does the outside world perceive you? Small? A start up? Or on the verge of taking on the largest companies and clients in your industry?

10. Innovation Capabilities
How much do you invest in making your firm different? How is that showing up in your strategy?

11. Intentional Culture (and proactive actions)
Being acquired is tough on a team. Investors know that is a risk. What repeatable actions have you implemented to strengthen your culture? This will mitigate risk and make it easier for the investor to stretch on valuation

12. Business Development Pipeline Presentation
All good businesses have a robust BD pipeline. Does your pipeline tell the story of the company you are or the company you want to be?