Looking at the world in a different way
Traditional advisers think about value in much the same way they did 100 years ago: primarily as a financial metric. That makes sense if you run a steel mill or a dry cleaning business, but not a tech company. In contrast, we think about value as the natural outcome of how well you answer the following question:
"What competitive advantage does my company have to offer another (usually much larger) company?"
The answer to this question is what we refer to as "strategic value" and is why a company with five people and no revenue can sell for a billion dollars, while a company with five hundred people and $100 million in revenue sells for a fraction of that amount. Strategic, not financial value is what drives most tech deals.
There are essentially two ways of creating shareholder value: financial and strategic. Financial value is the stuff of business school and stock markets. It's about multiples of revenue or earnings, sales growth, profit margins and management theory. Financial value is about a company’s ability to grow and prosper as an independent company.
Strategic value, on the other hand has little to do with any of those things and almost everything to do with how your company’s product and/or market position help or hinder another company's (usually a bigger one's) ability to be successful and how you can use that to your advantage.
Traditional advisers can help you manage the logistics of a sale or fundraising effort, but they are ill equipped to help you with the single most important element of optimizing your outcome: how to identify and articulate your strategic value and reach the people that really matter.
We help companies maximize their strategic value with a unique, battle-tested methodology and an extensive network of industry insiders. Learn more about how we do, what we do.