Equitec's 8 levers of equity value

"If you’re running a successful consulting firm its likely that your focus has been on driving this years sales and profit. You might be surprised to hear that these efforts are not enough to maximize the equity value of your firm. In fact a 50% increase in profits this year without paying attention to a certain set of factors that reduce risk could actually erode your equity value." Quote from Equitec, the full article is shared in the Comments section below this post.

Equitec identifies eight key drivers of equity value:

• Sales and profit growth
• Sales & Marketing process
• Market proposition
• Management quality
• Client relationships
• Quality of fee income
• Intellectual property
• Consultant loyalty

I find this model incredibly helpful to walk through with my clients, to get them thinking of the importance of each element. And from there, figuring out with their team how can we improve on the weak areas so that we see measurable improvements in 12 months' time?

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