Financial value of SEM firm from investor’s perspective.
Marty Weintraub has posted a wonderful blog that describes the views of investement community on search optimization companies.
Here is the recap of his post.
The most important factors investors will look to identify the value of the company.
- Current and Past Client List – the bigger the better. Current client list serves as in indicator to future clients.
- Nature of revenues – one time assignment or a recurring project.
- Tools Employed – commercial high grade software, sets apart companies in the eyes of investment community.
- Scalability – can you grow in the areas where you are already successful?
- Management Style.
“The investor wants to be assured that you have the ability to see into the future and be a visionary leader. This factor is particularly important in the SEO/SEM industry because things change so quickly. Competitive positioning is very important to potential suitors. Know who your competitors are and be ready to paint a picture of what your competitive landscape and know your position.”
Regardless of whether your company is looking for an investment or transfer of rights, it is essential to keep in mind factors outlined by Patricia Hall. Succesful business practices require a good grip on all of those elements regardless of current and future plans, be it an SEO company or any other online/offline venue.
