The financial valuation of companies, particularly those focused on marketing, depends on several factors, including the effectiveness of their marketing, the quality of their customer bases, the value of their data, marketing automation, and their ability to acquire and convert leads. We offer you our matrix to evaluate the impact of these elements on the resale value of a company (brand, ETI, Startup)
Financial data analysis : Start by reviewing the company's financial data, including its revenue, profit margins, marketing costs, and historical growth. This analysis will allow you to obtain a starting point for valuation.
Valuation of intangible assets : Successful marketing often relies on intangible assets such as customer bases and data. Evaluate the size and quality of the company's customer base. The more populated, committed and loyal it is, the more valuable it is. Likewise, assess the quality of customer data, focusing on accuracy and relevance for marketing activities.
Valorization of data : Data is increasingly valuable in modern marketing. Estimate the value of data held by the company by taking into account its ability to support personalization, segmentation, and optimization of marketing campaigns. High-quality data can significantly increase business value. So today an "opt'in"/"opt'out" (GDPR) customer base pre-tagged for retargeting actions has a much greater value than a classic base that does not integrate new marketing developments.
Marketing Automation : Marketing automation helps streamline processes, improve efficiency and reduce costs. Evaluate the automation technologies used by the company and their impact on the bottom line. Effective automation can increase profitability, productivity and, therefore, business value. This active automation will greatly facilitate the task of buyers, for example (clear structuring of information, rules and marketing scenarios, 24-hour customer acquisition and automation of contacts, conversions, etc.)
Lead acquisition and conversion : analyze the costs of acquiring leads (cost per contact / cost per lead) and their conversion into customers (conversion rate). An effective marketing strategy should minimize acquisition costs while maximizing conversion. A company that can demonstrate high efficiency in these areas is generally much more attractive to investors. In general, very big progress is achievable in these areas for any society.
Benchmark/comparison with similar companies : Compare the company's marketing performance with other companies in the same industry or industry. This will assess its competitiveness and position in the market and demonstrate its superiority.
Financial forecast : Create financial forecasts for the business taking into account potential improvements resulting from marketing optimization. This may include projections of revenue growth, profit margin and cash flow generation.
Evaluation of the valuation premium : once you have analyzed all of these elements, determine a valuation premium to apply to the company based on its marketing effectiveness. This premium may vary depending on the industry, company size and growth potential. We evaluate at a minimum of +60% this valuation bonus via our Hypermarketing approach.
Sensitivity to variations : Assess valuation sensitivity to changes in key metrics, such as growth rates, profit margins and marketing costs. It is possible to determine an elasticity (scalability) of each parameter on your growth.
In summary, marketing effectiveness, customer base quality, data valuation, marketing automation and lead acquisition and conversion performance can have a significant impact on the resale value of a business . A rigorous methodology for analyzing and evaluating these factors is essential to determine the financial value of the company and its attractiveness to potential investors.
Are you a decision-maker, founder or buyer of an ETI, a startup, a brand? Marketing is the strategic and functional building block that most impacts the value of your business in a competitive market. Are you lacking visibility or performance? Do you think it is time to give consistency and direction to what already exists? Contact us to discuss the future of your brand
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