THE QUALITY OF REVENUE ASSESSMENT
Brainheart Growth specializes in conducting proprietary "Quality of Revenue" (QoR) assessments that facilitate strategy execution and enable more consistent achievement of revenue goals. The QoR assessment is used by investors and company management to enrich due diligence and develop better playbooks to drive organic growth and value creation.
IDENTIFY GAPS AND OPPORTUNITIES TO UNLOCK REVENUE GROWTH
Quality of Revenue (QoR) is an assessment of a company's intangible assets that are critical to revenue generation.
The QoR is a proprietary benchmark of 50 key capabilities on how companies operate, covering culture, strategy, human capital, sales practices, customer focus, business process, business ops & risk, product, marketing, revenue tech and data, pricing, and revenue operations. The QoR assessment prioritizes the highest ROI action areas and the outcome-oriented playbook deliverables enable execution - an area where many companies struggle even if they have the right strategy. QoR offers a fact-based evaluation on achieving future revenue targets, identifies key challenges, and suggests specific actions to enhance performance to help management and investors realize a business's full growth potential.
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THE PROBLEM WITH TRADITIONAL APPROACHES TO ASSESSING FIRM VALUE
It is inherently difficult to predict and forecast future revenue growth. That is why equity investing is both risky and lucrative.
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#1. Unreliable Revenue Forecasting
Traditional methods used by finance teams for revenue forecasting are fragmented and unreliable, often failing to account for post-booking variables and the complexities of modern revenue streams, leading to inaccurate forecasts and operational misalignments.
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#2. Disjointed Management of Growth Resources
Organizations often face difficulties due to the fractured management of growth resources across functions like marketing, sales, and customer success. Lack of cross-functional information sharing and alignment significantly impacts revenue potential and financial forecasting.
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#3. Lack of Reporting of Intangible Commercial Assets
The difficulty in measuring, managing, and reporting intangible commercial assets like brand, customer data, and digital channels hampers revenue and margin growth analysis. Despite their proven impact on firm value, these assets aren't typically included in financial reporting or Quality of Earnings analyses.
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#4. The Limitations of Quality of Earnings Analysis
QofE often overlooks forward-looking revenue pipelines, long-term contract potential, and intangible assets critical for growth. This gap in QofE makes it challenging to accurately value a firm's future revenue and growth potential.
A BETTER WAY TO DETERMINE A COMPANY’S
ABILITY TO GENERATE FUTURE GROWTH
A Quality of Revenue (QoR) assessment is a forward-looking analysis that objectively grades a company based on its capabilities in nine core operational and functional drivers of future revenue growth potential areas that are key to sustainable revenue generation and hitting revenue growth targets.
Objective Analysis
It provides an unbiased, forward-looking evaluation of a company's capabilities in key operational and functional growth drivers.
Evaluation of Intangible Assets
QoRG includes assessment of intangible assets like brand equity and customer relationships, often overlooked in traditional analyses.
Holistic View of Revenue Potential
It offers a more complete picture of a company’s future revenue potential, beyond financial statements.
Action Oriented
The assessment identifies root causes of revenue issues and provides a roadmap for enhancing performance.
ACCELERATE PORTFOLIO VALUE
Enhance your revenue by conducting an in-depth Quality of Revenue analysis across all business units responsible for revenue, helping you identify risks and growth opportunities.
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WHAT DOES IT TELL YOU?
The QoR assessment offers a thorough evaluation of a company's practices for sustainable growth, strategy execution risks, and covers 75% more revenue aspects than traditional Quality of Earnings.
WHAT DOES THE QoR ASSESS?
It covers 12 key areas including strategy, culture, human capital, sales practices, customer focus, business process, business and ops risk, product, marketing, revenue tech and data, pricing, revenue operations.
HOW IS IT DIFFERENT?
QoR differs from traditional financial analysis by focusing on operational and functional areas crucial for sustainable revenue growth, rather than just historical financial performance.
DUAL APPLICATIONS TO ACCELERATE PORTFOLIO GROWTH
When it comes to selecting new investments and accelerating revenue from the portfolio, there is often not enough focus on evaluating and optimizing revenue generation across strategy, process, and systems.
ENHANCED DUE DILIGENCE
Our due diligence services provide critical insights for new investments, equipping you with targeted strategies to accelerate sales and marketing performance, complete with a ready-to-implement plan.
EXISTING PORTCO'S
We provide in-depth analyses of existing portfolio companies' revenue-generating processes, pinpointing crucial areas for improvement and identifying potential opportunities for enhanced revenue growth.
READY TO ACCELERATE THE VALUE OF YOUR PORTFOLIO?
For investors, owners, and managers, accurately assessing a company's potential for sustainable revenue growth and meeting financial targets is essential. Organic revenue growth is key to business value and directly relates to future cash flows. In today's market, affected by rising interest rates and intense competition, the focus is less on financial engineering and more on a company's inherent ability to generate cash flows. Businesses that can consistently grow revenues organically are valued much higher than those focusing solely on cost-cutting or financial maneuvers.