T.V. METZ & CO., LLC
Boutique Investment Banking
The Growth Imperative
is not the strongest of the species that survives,
― Charles Darwin
Growth is the essential element for creating shareholder value. Initiatives associated with growing revenue drive more value than any other action. Growth is more important than cost structures or margins. It is better to get revenues up than costs down. Higher growth drives a greater market capitalization and is the key predictor of success over the long term.
The quote above by Charles Darwin above captures the importance of change. Growth requires change.
A business that wants to grow is a business that must make changes. It must change its approach to the market, change its products and services, or change something else. Every business needs a strategic plan that includes new avenues for growth.
Many factors can hold back a company’s growth. The industry may be mature. The technology may be old, on the wrong platform or the products are outdated. A company may lack the sales and marketing resources to effectively address the market. Long sales cycles can be a challenge for smaller companies. Lack of financial resources can limit progress. People and organizational problems can also constrain growth.
Sometimes companies have a combination of these problems— which is really a killer. If that is the case, the best course of action may be to find a strategic acquirer and sell the business.
Push the Boundaries
When you push the boundaries, there is always an advantage. Every market has adjacent markets. Therefore, there are always opportunities.
Think about expanding into new and adjacent markets. Where are the high growth sectors? Build or acquire new products, new services and new capabilities. Have the courage to make a move into a new sector.
the edges. Think outside the box. How can you deliver more value? Find
differentiate. Differentiation is the key to long-term growth. Growth
Develop a Growth Strategy
We offer growth strategy advice that pushes the boundaries. When you push the boundaries, there is always an advantage. We explore the edges of the market for acquisitions, for new products, services and other growth opportunities. We create strategic options.
The process we use for identifying growth opportunities is similar to our process for selling companies. We explore the tangential and adjacent markets with an open mind. We look for movement, especially at the edges. Who are the players there? How do they add value? What differentiates them?
Our growth advisory service complements our M&A business—selling companies with strategic value, typically in the technology, software and tech-service industries.
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