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Increase a Company’s Valuation through Differentiation

This is the 4th of a 6-part series on amplifying company valuation

In our first 3 articles in this series, we reviewed ways to increase the money your company could sell for. In this article we will explore another strategy to increase your company's value. Specifically how to leverage differentiation to help your company to become the “shiny penny” in the market.

As an example of how this works, we consulted with a mid-size company to help it attract more buyers that would be willing to acquire the company at a higher price. The company’s products were largely outdated and did not stand out in the market. We launched a new line of high-end products, creating the first premium segment in an established category. The entire industry took notice and began scrambling to catch up. This enabled the company to attract the attention of more buyers and be acquired by a multi-billion-dollar corporation at a much more attractive price.

At Anavo we utilize the following approach to help companies become the shiny penny for potential buyers. Hopefully you will find this helpful as well.

How to Differentiate Your Company & Become the Shiny Penny

To Attract More Buyers at a Higher Price

Here are a few examples of strategies you could pursue to achieve this:

· Take advantage of market opportunities or trends

o Expand to untapped or underdeveloped segments

o Be the first to pursue an upcoming market trend, such as artificial intelligence

o Add training or certification services to capture upcoming regulations

o If a premium segment does not exist in your category, create it

· Differentiate from the competition in ways that are important to customers

o Add premium benefits that only your company is equipped to provide

o Cut the time to deliver products/services (leverage technology, Lean, etc.)

o Add services that leverage your expertise (consulting, training, etc.)

o Add products that amplify the value of your services

These are just a few examples, but the process begins with understanding your company’s true advantages, the market, the competition, and what customers really need and want. This understanding can also open many more opportunities to increase your company’s value while creating profitable growth.

In the next article in our 6-part series on amplifying valuation, we will discuss how to optimize your cost structure, operations, and management. You can also find additional articles on our blog page or reach out to us to learn more.

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