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The Revenue Group
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BUILDING GOOD TECHNOLOGY COMPANIES INTO GREAT COMPANIES WITH HIGHER VALUATIONS
BUILDING GOOD TECHNOLOGY COMPANIES INTO GREAT COMPANIES WITH HIGHER VALUATIONS

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Something new is coming and it will affect your privately held business, whether you want it to or not. Every CEO will at one time or another ask the question, “what’s my company worth?” Wouldn’t it be great if there was a a simple, trustworthy way to…

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  It’s very challenging to start and grow an idea into a successful company.  The odds are stacked against you.  A recent FRACTL study of over 200 company post mortems found that the #1 reason most often cited by founders, even more often than running out…

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There are a lot of things that you as the CEO need to do to build a good company.  Many of those will also position your company to be acquired by a bigger company. Preparing and Building Value Things you can do to prepare for a sale that also build your…

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Confession time. I have done exactly what I have been telling my clients NOT to do.  I’ve been working “in” my business, not “on” my business. It’s been a long time since I’ve written a blog post.  I started out writing a post 3 times per week, then…

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Revenue growth isn't a strategy, it's a result.  

So why do some companies grow and some don't?

Does following best practices in strategy, marketing, operations, and organization generally make it possible for companies to increase their revenues consistently—or does that kind of growth usually require something more?

CEOs need to complement the traditional focus on execution with more attention to where a company is—and should be—competing.

Read more on the blog post to learn:
- What to focus on when seeking growth
- The 5 Key Questions every CEO should ask to evaluate when and how to maintain or accelerate their growth trajectory.
- The 5 main reasons a company can demand a premium in a funding event or an acquisition.

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Why build a company to be average?  It takes a lot of work to grow your company, why not focus on making it great?

You can spend a great deal of time "fixing" your company and bringing it up to "average". Financially speaking, that can be worth a lot of money in a sale.  Moving from a valuation of 2x revenues to the industry average of 4x revenues on $10 MM in annual revenue can be worth $20 MM.

If all you strive for is diminishing the bad, you'll only attain the average and miss out entirely on the opportunity to exceed the average.

What if that same $10 MM company was able to increase it's multiple to 6x?  That would be an additional $20 MM.

Read more on the blog post to learn:
- What makes a company valued higher than average
- How do you make that happen
- Build an Outlier

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Our latest blog post on Hitting the Growth Wall and what you can do about it.

Read the blog post to learn:
- What Growth Walls really are
- The 5 Management Practices that Stall Growth
- What you can do to Break Through the Growth Wall

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Synergy is an overused term in M&A, in my opinion.

How do you know when you have "synergy"? How do you know when you don't?

I believe "synergy" is a generic and overused, fuzzy word to describe some goal that is considered important to achieve.

A "fuzzy" word is an abstraction, a broad statement of intent that sort of points in the direction of a desired outcome, but doesn't describe it very well.

An example is "maximize shareholder value" or "create a strong competitive advantage." What the hell do those statements mean?

Read more on the blog post to find out:
- Why a buyer doesn't want to pay for "synergies"
- What a buyer IS willing to pay for
- How a seller can GET a premium

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Private equity (PE) firms have sometimes been called "Vulture Equity".

PE firms have a bad reputation for coming in, cutting costs, firing people and taking over businesses. But PE can be an excellent growth opportunity and even become a partnership for struggling companies.

There are a lot of misconceptions around PE firms and they mostly involve EGO.

Read more on the blog post to find out:
- What I misconceptions I had about PE firms
- What steps you can do that a PE firm would do
- Find hidden opportunities to increase value

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Can you state your company's strategy in a simple sentence?

Kenichi Ohmae, the author of The Mind of the Strategist, the Art of Japanese Business, is quoted as stating, "Inability to articulate a strategy in a single, incisive, natural-sounding sentence is a sure sign that there is something wrong in the strategy itself."

As a result you've got an organization where it's not clear to the leadership and to the key people in the company where the company is strong, that it's headed in the right direction, and that it has its priorities correct.

The effect is that the company has lots of good people that are taking good salaries but they're not really producing for the company.

Read more on the blog post to find out:
- 5 Steps to creating a strategy for what really matters
- How capabilities determine success in implementation
- How to use strategy to identify and prioritize gaps
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