Value Enhancement – Understanding and Improving Value Drivers
What is Value Enhancement?
Value enhancement is a short term change that creates a long term benefit to equity holders. The BVI valuation process reveals the key value drivers within a company to our analysts. By combining this knowledge with our expertise in process improvement, BVI is able to provide our clients a roadmap to improve the value of their companies.
How does it Work?
Through the valuation process, BVI analysts work to understand every element of a client company’s financial performance. This process typically identifies a few critical components that drive a company’s value. For some, the key drivers are revenue growth and gross margin. For others, it might be operating efficiencies and capital expenditures. Through detailed modeling, our analysts can determine and demonstrate which components are critical to a company’s value.
Once the key value drivers are identified, our analysts can model what changes most effectively increase the value of the company. With this information, we work with our clients to develop a plan for implementation and a tool to measure the effect on an on-going basis.
Who Can Benefit?
Organizations of any size from any industry can benefit from Value Enhancement. We have delivered the program successfully for companies in a wide variety of industries, including health care, professional services (accounting, marketing, etc.), construction, manufacturing, logistics and distribution, engineering and design, and nonprofit.