- This value driver is a measure of stakeholder goodwill. It is measured in terms of growth rate, health, and awareness of the corporate image, mission, branding, etc.
Human Capital
- This value driver is an assessment of
an organizations human resources. It is measured in terms of management's
experience, ability, board and career development.
Intellectual Property(IP)
- This value driver is an assessment of
the depth and breath of the intellectual property of an organization. It is
measured in terms of Trademarks, Patents, Trade Secrets, and processes of
knowledge capture.
Customer Base
- This value driver is an assessment of
the customer base in terms of growth, sentiment, diversity, liquidity, and age
of base.
Product Integration
- This value driver is an assessment of
an organization's product and services portfolio. It is measured in terms of
vertical & horizontal alignment, manufacturing process dependencies, and ROI.
GA Efficiency
- This value driver is an assessment of
the general and administrative functions of an organization. It's measured in
terms of staffing efficiency and expertise, work space allocation, etc.
Barriers to Entry
- This value driver is assessed in
terms of competition, macro trends, competencies, and other transaction
barriers.
Recurring Revenue
- This value driver is assessed in
terms of sales effort, warranty expense, after sales support, and probability of
repeat sales
Distribution
- This value driver is assessed in
terms of the variety of channels, access to channels, channel discounting, take
back liability and sales costs.
Sales & Marketing Efficiency
- This value driver is assessed in
terms of ROI, age of models, forecast accuracy, scalability.
Gross Margin
- This value driver is assessed in
terms of accuracy of COGS, WIP to waste ratios, market pricing.
Asset Rating
- This value driver is assessed in
terms of aging, depreciation, utility, and market value.
Risk Management, Definitions of Risk.
A systematic assessment of
an opportunity such as a strategic acquisition, joint venture, etc.
will enable an organization to value the potential synergies while
understanding the embedded risks. Our approach is holistic,
analyzing processes, technology, and strategic potential. Gallium's due
diligence process
provides a detailed analysis and valuation of each of the primary value
drivers. This assesses all aspects of a transaction.
Optimizing the Risk-Reward
balance within the soul of a corporation's decision making will enable
corporations to:
Develop opportunity
metrics that evolve with a consumer population and lifecycle
Determine valuations
discounted by risk and opportunity cost.
Avoid the pitfalls of
over-valuation and transactional value leakage
