- 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.
The economic turmoil has
provided opportunities for right-sizing. Organizations
must evaluate the efficacy and efficiencies of all parts of their
business. Dead weight must be shed. Capital can be raised for operations
with strategic operational plans. Access to new markets and customers can be
availed with the proper alliances.
Value conservation or creation can be derived via mergers, acquisitions,
alliances, or divestitures, if the risk-reward balance is well
understood. The primary
value drivers are
listed below:
Optimizing the Risk-Reward
balance within the soul of a corporation's decision making will enable
corporations to:
Determine the
landscape of true buy-sell opportunities
Discount technology
hype and determine true market valuations
Provide future returns
perspectives for non-cash transactions
Enable the proper
mindset and deliver acute action sets to prepare for sale
