CEO Topic: Decoding Industry Valuations: Outsell’s Enhanced Valuation Model


Author: Chuck Richard

Date: May 6, 2015


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.


  • Why This Topic
  • Methodology
  • 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

Additional information



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