Shoot the Moon with Revenue Rocket

Why Sellers with Vertical Market Approaches Earn Premium Valuations

Episode Summary

The more specific you are in your vertical market, the easier it is to be successful & sustainable. Why? One of our latest podcast dove into why Uptime Legal picked and won a vertical market. Today we want to dig into why having a vertical market approach will lead to a premium if you’re selling your IT Services company.

Episode Notes

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