Hidden Value Drivers: Unlocking Mid-Market Potential

Welcome back to another edition of The Wise Exit!

In today's edition, you'll learn:

• How IP can be a hidden value driver for mid-market firms.

• What makes a great business strategy consultant?

• My cheat sheet for building a 'sellable' business.

Let's dive in ...

Hidden Value Drivers: Unlocking Mid-Market Potential (Part 1 of 3)

So, you're running a mid-market company, hustling day in and day out. But what if I told you there's a mountain of value hiding right beneath the surface?

Spoiler alert: It's your intellectual property (IP).

Over the next three weeks, we'll explore hidden value drivers that can turn your mid-market company into a goldmine.

Today, we're kicking things off with IP—the unsung hero of business value. For mid-market firms, IP can be their secret weapon that can be their ticket to the big leagues.

Types of IP: Your Business Superpowers

1. Patents are your company's forcefield.

They protect unique inventions and keep copycats at bay.

Do you have a groundbreaking product? Patent it.

Patents won’t do all the work. If it’s a great idea, there will be others that copy. But the patent will enable you to defend, and are INCREDIBLY valuable to potential acquirers.

2. Trademarks are your brand's bouncer.

It's everything that makes your company unique - from slogans to mascots and trademarks - and keeps your brand identity safe from imposters.

And potential acquirers pay more when you have a recognizable and well-respected brand.

3. Copyrights are the bodyguards of your creative works.

Copyrights ensure your creative genius, whether software code or marketing materials, stays yours.

4. Trade Secrets are the cloak-and-dagger of business.

They're your secret sauce—like the Coca-Cola formula. Keep them under wraps for market domination.

Strategies for Leveraging IP: Time to Flex Those Intellectual Muscles

1. Conduct an IP audit: Spring clean your business brain. Uncover all those brilliant ideas you've had.

Don't let potential goldmines slip through the cracks.

2. Develop an IP strategy: Create a game plan that aligns with your business goals.

Think of it as your IP roadmap—from "cool idea" to "cha-ching!"

3. Protect and monetize: Turn your IP into a money-making machine. License it, attract investors, or crush the competition.

Make your IP work as hard as you do.

Real-World Impact: From IP Benchwarmer to MVP

Here’s an example:

Let’s say a tech firm suddenly realizes its IP was collecting dust instead of dollars.

They decide to shake things up with a strategic IP management approach.

Here's how they turn their IP from benchwarmers to MVPs:

1. They start seeing patents as valuable assets, not just dull legal documents. It's like realizing that an old baseball card collection is a home run for your bank account.

2. They get market-savvy, focusing on what customers actually want. Novel idea, right?

3. They implement a selective patenting strategy, focusing on game-changers. Quality over quantity, folks.

4. They turn bench-warming patents into moneymakers through licensing. One company's strikeout became their grand slam.

5. They flaunt their IP portfolio to investors and use it to expand internationally, leaving competitors in the dust.

The result? They go from mid-market underdog to the Babe Ruth of innovation.

The Exitwise Angle:

At Exitwise, we've been through the exit process. We know how uncovering hidden value drivers like IP can turn a good exit into a great one.

We dive deep to help you maximize these assets - it's like having a metal detector for business value.

Ready to turn your bright ideas into cold, hard cash? Get in touch.

Featured Blog 📰

What makes a great business strategy consultant?

From streamlining operations to expanding into new markets, a top-notch consultant can be a lifesaver for your business.

In this blog post, we explore the key qualities to look for in a business strategy consultant and how they can help take your company to the next level.

Read the blog post: How To Best Utilize A Business Strategy Consultant?

M&A Tips from Brian Dukes 💡

Everybody wants to sell their business, but not everybody can.

Here's the thing:

I've helped my clients sell for over $100 million in enterprise value (and I've learned a thing or two).

So, if you want to build a business that SELLS, steal my cheat sheet:

Read the full post on LinkedIn.

That's all for now.

Tune in next Wednesday for another set of M&A lessons, and have a great rest of the week.

Best, Brian Dukes