“We didn’t know how to value the digital piece of the business, and we lost the deal because we couldn’t make a strong enough bid.” Does your team have a strong digital valuation framework?
Deals have become increasingly competitive, with an ever-increasing number of bidders involved in every transaction.
Surveys are an extraordinarily valuable tool for generating deep customer insights quickly. They work as standalone efforts and even better when integrated with macro data, externally generated data and internally generated data. Like all good things, a little process and preparation helps you go faster and deeper to generate insights. By understanding that the entire process is what generates insights and not just the survey itself, you’ll ensure the output is meaningful and impactful.
In today’s environment, what is consulting worth? What is the value of commercial due diligence from a strategy consulting firm? Are consultants worth less or more to private equity investors than they were ten or fifteen years ago? Under what circumstances is consulting worth more, or worth less? At Stax, we can provide quantitative answers to such questions.
2016 has gotten off to a slow start for dealmakers. The first quarter of the year saw private equity deals overall drop by 30% year-to-date according to PitchBook. While higher valuations have been attributed to driving the volume of deals — specifically in technology — down, that does not mean that competition has slowed.
Whether you regard time as a steady continuum or stretchable elastic, as Einstein theorized, we all know that time is money. We often see organizations spend a lot of money without saving time, when they could have spent the same money, saved a lot of time and effort, and reached their growth goals much more quickly.
What I’ve learned from the last two recessions and working with some of the best investors in the world, is that information is far from perfect, and one can get a huge information advantage, and there is value in learning how to move fast. Whether this market is similar or different for technical reasons, I won’t argue. But there is no do doubt about this: In today’s environment, we can get far more information, far faster, than any of the last go-arounds.
Based on 20 years of experience advising on the buy side of commercial due diligence and helping companies increase profits, here are six ways we see to increase exit value. These generally take just four weeks to six months to complete, and most have a significant ROI within three to six months if you choose not to sell.