Enterprise Value: The Business Case For Medium to Long-Term Growth.
Enterprise value creation is consistently listed as the most urgent issue on the executive agenda. Some companies turn to marketing and sales acumen as their sources of growth and value creation. However, marketing and sales functions are inherently tactical and ill-equipped to address the medium to long-term growth needed for enterprise value creation.
To confront this challenge, companies now focus on finding resources that produce the medium to long-term growth that drives enterprise value creation. Specifically, as much as 70% of the enterprise value (i.e. stock price) of a company is based on market expectations of its future growth prospects over the medium to long-term (12-60 months) time horizons – rather than current or short term performance. To that end, we developed “Where Will Our Future Enterprise Value Come From?” infographic to highlight the role of medium to long-term revenue and growth outcomes in enterprise value creation. Download PDF
Indeed, growth-focused companies outperformed the market during good times, and instead of retreating, tend to extend their market positions through the most challenging times. Therefore, with enterprise value as the prize, the case for medium to long-term business growth becomes clear and intertwined.
Want to learn more? Download our latest e-book note on Maximizing Future Revenue and learn how you can create value in the 21st Century and speak the language that CEOs, CFOs, Boards and Shareholders really care about.
Author: Wayne A. Simmons
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