info@valleycovecap.com
West Palm Beach, Florida
Category: Entrepreneurship Through Acquisition
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A Competitive Moat
A business’s moat refers to its ability to maintain the advantages that are expected to help the company stay ahead of industry rivals and maintain excess profits into the future. Traditionally these are deeply ingrained benefits like owning a great deal of intellectual property, enjoying a lower cost of capital, a network effect, and/or brand recognition.…
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Top Line Value Creation
There are two ways to increase the value of a company, grow the top line and shrink the bottom line. Increasing sales to generate revenue and growing the top line increases value far more than cutting costs. Operational efficiencies are important and lead to better cash flows, but look at any financial model of a…
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Looking For Scale
The ease with which some businesses scale in the new globalized and digitized economy has led to a handful of massive global companies and increased wealth inequality. Small companies can reach customers around the world. Millions of customers can instantaneously download the latest app for $1 and make overnight millions, with zero added cost per…
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Defining A Search Fund
Earlier this year the Wall Street Journal published an article in the career section entitled “M.B.A.s’ Latest Pitch to Investors: Skip the Startup, Invest in Me.” The article compares search funds to SPACs (Special Purpose Acquisition Companies) in that there is an investment in a person before there is a company with a promise of…