How a Customer-Based Corporate Valuation Perspective Can Help Investors Navigate the Covid-19 Crisis

Image by Edwin Hooper

The Covid-19 pandemic strains businesses around the world, and uncertainty among consumers and in financial markets makes this situation uniquely difficult to navigate. Companies are making critical decisions now that could impact whether or not they survive.  As an investor, you're facing big challenges, both in helping existing portfolio companies deal with the crisis as well as in evaluating new investment opportunities.

How can Customer-Based Corporate Valuation (CBCV) help you navigate the situation and come out stronger?

Take a quick self-diagnostic survey to get immediate actionable advice on navigating through the Covid-19 crisis.

Supporting your portfolio companies

Our CBCV lens will help you and your portfolio companies carefully think through and model possible future scenarios to address key questions you may be facing right now:

How will the Covid-19 crisis impact your portfolio companies?

  • How, exactly, has the demand shock impacted customer behavior (and, ultimately, sales) at your portfolio companies? What does this imply your revenue forecasts could be under different scenarios?

  • How much are your portfolio companies worth today and how will the crisis impact those valuations?

How can your portfolio companies navigate the situation?

  • Do your portfolio companies need additional capital to maintain adequate liquidity? If so, how much capital will they need and how much equity should you ask for in return?

  • Which customer segments should companies focus on in this changed environment?

  • How should companies change the allocation of their marketing budgets?

  • What customer-centric measures can your portfolio companies take to survive the crisis (and come out stronger)?

Being smarter about Due Diligence

Our CBCV lens will help you decrease uncertainty surrounding the market disruption as you consider potential investment targets:

  • How has and will your potential target be affected in terms of sales and customer value?

  • What is your potential target's fair valuation range given the market disruption and related uncertainty?

  • What are key opportunities to increase customer value if you were to invest in the target?

These are all questions that you should be considering in addition to the more typical questions that you regularly address as an investor. Our CBCV solutions for investors (CBCV Express Analysis, CBCV Deep Dive, and CBCV Valuation) include a thorough analysis of customer behavior and potential scenarios that may impact your portfolio companies' and targets' performance and valuation. Contact us to discuss how Customer-Based Corporate Valuation insights can help you better navigate these uncertain times.