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.
Latest posts by Alok Mittal (see all)
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
- What’s your Customer Culture? - March 4, 2019
0
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!