09 Aug Why Sellers with Vertical Market Approaches Earn Premium Valuations
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Summary of this Shoot the Moon Podcast episode:
- Picking a vertical market brings a level of differentiation that brings value
- Customers are easier to acquire and keep which increases revenue and profit will increasing the level and value of intellectual property.
- If buyers are in alignment with vertical markets, they are willing to pay up; not only do you get a premium from enhanced EBITDA, you gain more in strategic synergies
- Firms outside the vertical may want to get in and will acquire greater strategic value
- Industry experts can weather the storms of industry cycles and remain profitable
- Picking and winning a vertical market can be achieved, but work with an expert