For more than 20 years, Caliber Advisors has provided expert valuation and economic consulting services to a wide range of industries. This experience has given us key understanding of major industry groups–understanding of the types of valuation metrics, performance expectations and intellectual properties are often unique to certain industries.
But equally important to this experience is the knowledge that as supply chains streamline, and new products and communications emerge, industries and their economics change. Often, old expectations of valuation, asset intensity and performance results change, causing the economics of one industry to suddenly appear more like those of another.
Understanding the connection between an industry’s current and future economic environment gives Caliber staff important insight into current and future valuation expectations. When and industry moves from one business model (e.g., asset intensive) to another, it will change cash flow expectations and valuation multiples. But it may also change or remove barriers to entry which can impact the role and duration of IP and other considerations that will also change cash flow expectations and multiples. Our understanding of multiple industries helps us guide our clients on suitable valuation and performance expectations.