The New Drivers of Valuations
Valuation is the endgame and the lifeblood of an information company. It is the endgame when owners and investors are exiting the business, the lifeblood when going to the capital markets for new funding. Executive management and boards of directors of information companies must repeatedly choose between competing funding requests, increasing the importance of improved and updated data-driven insights into what drives valuations and what does not. This study analyzes prevailing strategies for maximizing value and uses statistical analysis to identify the small handful of drivers that are repeatedly rewarded with the highest valuations. This report includes:
- An overview of the Outsell Valuation Model, including a graphical analysis of potential drivers;
- Results of the Outsell Valuation Model, quantifying which drivers have the greatest impact on value;
- A discussion of lessons learned from the analysis;
- Guides to valuation strategies as they relate to common business models;
- Essential actions for industry executives to maximize the value received in funding and change of control events.