For those entrenched in an acquisition process, the final price results from several factors, including financial models, organization styles, complex human interactions, and a range of other variables. The valuations generated from Outsell’s models deliver insights that CEOs can leverage to maximize enterprise value. In this report, you’ll discover:
- Major enhancements over our 2012 analysis, including a 5x increase in the total number of valuations analyzed;
- A structured statistical analysis with models that reveal and quantify the factors and patterns that correlate with valuation outcomes;
- Valuation Impact Factors that help quantify specific increases in valuations.
With the inclusion of marketing, software and financial information and solutions firms, this modeling analysis is the ultimate tool for gauging new business strategies, honing product development strategies, and evaluating exit timing.
This study combines original Outsell analysis with Outsell’s ongoing and unique industry metrics and analytics, Outsell’s daily engagement and interviews with the leaders of the information industry, and the deep industry experience of our senior analysts.
The valuation models developed from this study draw on more than 550 transactions from Outsell databases, financial filings of selected public companies, and blinded, confidential transactional information from The Jordan, Edmiston Group, Inc. (JEGI) and other confidential sources. The analysis includes statistical and graphical examinations. We tested many variables and ran many models – more than 80 –– that we developed using structured multivariate regression statistical analysis to assess the factors that have the greatest impact on valuations as we put a backwardlooking lens on the transactions to derive the variables that have shown the most impact on valuations.
- Why This Topic
- Decoding Valuations
- Valuation Drivers: The Enhanced Suite of Outsell Valuation Models
- The Power of Interaction Variables
- Predicting Revenue vs. EBITDA Multiples
- Case Study Using Multiple Valuation Models
- Sensitivity of Valuations to Changes in Value Drivers
- Lessons from Advanced Valuation Analysis
- Essential Actions
- Appendix: Interaction (Cross-Product) Variables
- Related Research
Figures & Tables
- Table 1. Model Segments and VIFs in Each Model
- Figure 1. Selected Charts of Model Predicted vs. Actual Valuations
- Figure 2. Model Provides Insight Into Rich and Bargain Valuation
- Figure 3. Example of Applying Multiple Models
- Figure 4. Sensitivity to Improvement in VIFs by Size
- Figure 5. Sensitivity to Improvement in VIFs by Sector
- Figure A1. Interactions of Two Factors
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