Invest-Ability Index™


The Invest-Ability Index™ is a powerful metric for scoring the impact of the drivers of the Strategic Premium that either adds to or subtracts from the financial valuation of a company. It is method of quantifying and measuring previously unquantifiable qualitative factors that either diminish or improve the financial valuation of a company.

It is one thing to know the financial valuation of a company, which normally reports Equity Value, Enterprise Value, Asset Value and Liquidation Value. That benchmark is the ultimate and most critical metric for any company. As a matter of fact, unless that metric is increasing period by period, the other metrics used to manage the company are useless or misleading.

However, when it comes to an eventual deal for acquisition, ownership transfer, investment or capital restructuring, that metric does not reflect the true value of the company. Buyers, investors and even lenders will look beyond the financials of the company to determine its true worth. There are a number of drivers of Strategic Premium that will affect the real value of the company, the second metric of the Invest-Ability Index™.

The Invest-Ability Index™ is the obvious metric in addition to the valuation for senior management teams to monitor period by period to assess the competitiveness, health and progress of the company. However, the metrics are also of value to insurers, wealth managers, private equity firms, lenders, management consultants, board members, shareholders, business brokers, accountants, lawyers, investment bankers, investors, CFOs and many others who have a vested interest in the success of a company.

In the Valuation Driven Strategy Process, it is a joint effort of the management team and advisory team to determine the current condition of the company across a range of drivers of Strategic Premium which are well documented, benchmarked against industry leaders, and based on extensive research and real-world practice of industry experts.

Then, on an ongoing fashion, the management team and advisor can re-evaluate the Invest-Ability Index each period to determine the progress in improving the drivers of Strategic Premium. The result is a company that is healthier, hyper-competitive and ultimately, much more attractive to investors and buyers.

The elements of the Index are as follows:

  • Researched, benchmarked, statistically validated by 3rd parties
  • Exclusive industry leading index and valuation accelerator dashboard
  • 40+ Drivers of Strategic Premium grouped into 6 categories of proven factors that impact valuation at deal time
  • Index reflects drivers that affect valuation, with scoring to indicate either a strategic positive premium or negative premium (discount) for risk and uncertainty impact
  • The Index provides for tracking & documenting progress

“The value of the Index is its ability to highlight and map the maximum ROI to Leadership’s effort and an intuitive dashboard to track progress!”