- This value driver is a measure of stakeholder goodwill. It is measured in terms of growth rate, health, and awareness of the corporate image, mission, branding, etc.
Human Capital
- This value driver is an assessment of
an organizations human resources. It is measured in terms of management's
experience, ability, board and career development.
Intellectual Property(IP)
- This value driver is an assessment of
the depth and breath of the intellectual property of an organization. It is
measured in terms of Trademarks, Patents, Trade Secrets, and processes of
knowledge capture.
Customer Base
- This value driver is an assessment of
the customer base in terms of growth, sentiment, diversity, liquidity, and age
of base.
Product Integration
- This value driver is an assessment of
an organization's product and services portfolio. It is measured in terms of
vertical & horizontal alignment, manufacturing process dependencies, and ROI.
GA Efficiency
- This value driver is an assessment of
the general and administrative functions of an organization. It's measured in
terms of staffing efficiency and expertise, work space allocation, etc.
Barriers to Entry
- This value driver is assessed in
terms of competition, macro trends, competencies, and other transaction
barriers.
Recurring Revenue
- This value driver is assessed in
terms of sales effort, warranty expense, after sales support, and probability of
repeat sales
Distribution
- This value driver is assessed in
terms of the variety of channels, access to channels, channel discounting, take
back liability and sales costs.
Sales & Marketing Efficiency
- This value driver is assessed in
terms of ROI, age of models, forecast accuracy, scalability.
Gross Margin
- This value driver is assessed in
terms of accuracy of COGS, WIP to waste ratios, market pricing.
Asset Rating
- This value driver is assessed in
terms of aging, depreciation, utility, and market value.
Risk Management, Definitions of Risk.
Tightening of the credit
markets, illiquidity of customers and changes in demand have spurred
organizations to de-lever, downsize and determine new strategic paths.
Value conservation or creation can be derived via mergers, acquisitions,
or divestitures, if the risk-reward balance of the opportunity is well
understood. The primary
value drivers impacting financing are
listed below:
Optimizing the Risk-Reward
balance within the soul of a corporation's decision making will enable
corporations to:
Assess the long-term
impact of transactions upon an organization
Incent stakeholders to
preserve value at all levels
Renegotiate bond
positions, equity stakes, etc. to preserve value
