Now more than ever, it is critical that owners understand what drives the value of their businesses. In this opinion piece, Reed Phillips, managing partner of Oaklins DeSilva+Phillips, an investment bank focused on mid-market companies, and Jeff Pundyk, a senior advisor to the firm, say the challenge has been made more difficult by the digital transformation happening across every industry. They propose a different way for managers to pinpoint their value proposition.
The Organization for Economic Cooperation and Development (OECD) noted this week that the COVID-19 pandemic has “triggered the most severe recession in nearly a century.” As a result, company valuations are plummeting, making it even more important for business owners to understand what really drives the value of their businesses.
This challenge is exacerbated as businesses continue to work through their digital transformation, a process that can cloud leaders’ understanding of where their business’ value is derived.
Little wonder that the imperative to develop new strategies, make new investments, and to drive cultural and organizational changes can steal focus from this essential benchmark,…
