It’s one thing to understand what the company is worth- but perhaps more interesting is understanding what is could be worth.
The Spectrum of Value
Values for companies exist along a spectrum. Compared to peers, some companies are worth more than others. Our role is to determine where your company currently sits along that spectrum.
The Normal Distribution
In many respects values for companies follow a normal distribution. In a normal distribution 68% of values lie within one standard deviation from the mean or average. Only 2% are above two standard deviations.
Are You Best In Class?
If you were operating at Best In Class – in that upper 2% range, what would your value be? Understanding what this maximum value could be helps entrepreneurs focus on their potential value – and on what they might need to do to get there.