M&A Advisors
Predict Future Enterprise Value Before the Transaction
Reduce uncertainty about future enterprise value before a transaction
Apply two critical predictions that measure the two drivers of sustainable enterprise value:
1. Future Customer Demand
2. An organisation's Ability to Convert that Demand into New Revenue
These two predictions form the foundation of The Alpha Initiative™, helping M&A firms measure and strengthen the drivers of sustainable enterprise value to achieve valuation targets.
These two predictions are complemented by two additional predictive measures that, when applied in sequence, help M&A firms justify higher valuations, improve deal certainty, and optimise transaction timing.
| The 4 Predictive Metrics | The 4 Predictive Decision Signals |
|---|---|
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1. Customer Validation Visibility™
|
Revenue Quality & Buyer Confidence Signal. |
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2. Monetisation Maturity Visibility™
|
Valuation Expansion Signal |
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3. Growth Predictor Score™
|
Future Growth Premium Signal & Tranaction Readiness |
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4. Growth Predictor Index™
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Predicting Portfolio Performance |
1. Revenue Quality & Buyer Confidence
Metric 1: Customer Validation Visibility™ is a repeatable predictive metric of a company’s revenue resilience over the next 12 months, specifically its ability to retain and expand existing revenue.
Answers: Are customers likely to continue buying and expanding? (External validation)
Revenue Durability is a metric derived from customers’ ratings of the innovative value they expect a company to deliver in the future, measured on a scale of 1–10. These ratings indicate how effectively the company is adapting to customers’ evolving needs.
By weighting customer expectation scores by current revenue, the Revenue Durability Score estimates future revenue retention, growth potential within existing customers, and ongoing demand for innovation.
Decision Signals: Click here for a 12-month predictive view of:
Demand Durability
Growth Repeatability
Revenue Quality
Revenue Visibility
Customer Concentration risk
2. Valuation Expansion Signal
Metric 2: Monetisation Maturity Visibility™ predicts an organisation’s capacity to create new revenue over the next 24 months.
Answers: Does the organisation have the capability to generate and capture future growth? (Internal capability)
The prediction is derived from a confidential assessment of the organisation’s collective ability to continuously Adapt, Innovate, and Execute value for customers.
The resulting Revenue Creation score provides an early indicator of future growth potential. The accompanying analysis identifies the specific organisational constraints that may be limiting revenue creation, restricting growth, and ultimately impacting the durability of future revenue streams.
Decision Signals: Click here for a 24-month predictive view of:
Pricing Power
Revenue Scalability
Margin Expansion Potential
Execution Maturity
3. Future Growth Premium Signal & Transaction Readiness
The Growth Predictor Score™ combines data from metric 1 and 2 into a single score from which algorithms calculate and predict likely future revenue and growth rate over the next 24 months. Together, these factors provide a forward-looking indicator of growth potential not visible from financials. Detailed analysis pinpoints missed growth opportunities and capability misalignment to accelerate growth.
Click here to predict these growth premium signals:
Revenue Growth Predictability
Relative Revenue Outperformance
Expansion Runway & Penetration Potential
4. Predicting Portfolio Performance
Metric 4: The Growth Predictor Index™ illustrates a typical portfolio relative to industry average, market average, and top-quartile benchmarks. This data, generated over time as more investors and companies participate, will enable you to assess opportunities in your pipeline.
Participation
M&A Advisors register on our investor platform as the first step in building a predictive dataset on their portfolio. There is no cost to early investor participants.
M&A Advisors then invite portfolio or prospect companies to register on Growth Predictor’s platform from where their predictive intelligence is generated. M&A Advisor clients pay a modest starting fee to generate their first Revenue Quality & Buyer Confidence measure supported by feedback from a Growth Predictor advisor. When this has been completed, companies apply the other metrics. Clients have a choice of a one-off cost or a monthly subscription.
The Alpha Initiative programme can be viewed here.
Innovation Awards
Judges’ comments: “Powerful new intelligence measures customer demand and future growth potential. This grants financial institutions the ability to analyse companies through a new lens that directly links innovation performance to customers and predicted revenue growth”.
“Since establishing in 2016, Growth Predictor has developed into a pioneering force in business development technology, delivering a powerful platform that enables organisations to understand, predict and accelerate their future revenue by leveraging advanced analytics, strategic insight and organisational engagement”. View more here.