How to pinpoint valuation drivers

It’s important that your growth strategy exploits opportunities that will realise value for your business. 

This can be achieved by:

• Crafting a strategy that hits the trigger points driving enterprise value in your sector
• Identifying where uplift or arbitrage opportunities are available
• Identifying the tipping points of profitability
• Evaluating factors boosting valuation, such as exposure to specific international markets.
• Ensuring that your strategic plan follows growth. Numerous factors affect growth and will help to sculpt the strategic plan for your business, such as demographics, the competitive landscape and compliance requirements. Comprehensive research and analysis highlights opportunities most likely to add value to your company.

Our experience

A boutique investment firm approached us because they were interested in acquiring a group of day care businesses.

Our research identified that the key capital driver for children’s day care was the number of children per centre. At around 4,000 children the consideration paid per child increased exponentially.

We were able to advise the client that the optimal arbitrage gain was available by buying a group smaller than 4,000 children and then growing it.