What makes a valuable company?

Great article on what creates a valuable company – while the article is rooted in a discussion around “revenue multiples”, the key characteristics it outlines seem generally true for valuable companies. Summary:
1. Sustainable competitive advantage
2. Network effects
3. Revenue visibility
4. Customer lock-in
5. Gross Margins
6. Marginal profitability/ Profit scalability
7. Customer concentration
8. Partner dependency
9. Organic demand
10. Growth

Read on

1 Response to “What makes a valuable company?”

  1. Ashesh Patel says:

    generally agree BUT somewhere in there, there should be a mention of a ‘TEAM THAT ‘GELS’ — that team that works together can resolve anything that comes along & there are plenty of those things…..my 2cents!

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