Category: professional services
Consultancy firms are more likely to be valued based on a revenue multiple
There are a few key reasons why consultancy firms are more likely to be valued based on a revenue multiple, while product/manufacturing businesses are more frequently valued on an EBITDA multiple: So in summary, the recurring revenue stream, lower capital requirements, and leverage on talent/knowledge makes revenue a preferable valuation metric for consultancy firms. EBITDA…
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Multipliers for Consultancy Firms – Business Valuation
When it comes to valuing consultancy firms, there’s no one-size-fits-all approach. The valuation process is nuanced and depends on various factors, including the firm’s revenue, earnings, assets, and the specific niche it operates in. In this post, I’ll delve into the different types of valuation multiples used for consultancy firms, compare them with manufacturing businesses,…
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Professional Services Marketing Budgets
A comprehensive guide to marketing budgets for UK professional services firms, covering benchmarks, allocation strategies, ROI and practical budgeting advice.
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Optical price points in professional services marketing
Optical price points, also known as price anchoring or price framing, are a psychological pricing strategy used in marketing to influence consumer perceptions of value. While they are commonly used in consumer marketing, their use in the marketing of professional services in the United Kingdom can also be effective, albeit with some observed differences. The…
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The Challenges of Professional Services Marketing in the UK
The professional services industry in the UK, which includes sectors such as accounting, law, architecture, engineering, consulting, and advertising, faces unique challenges when it comes to marketing. In this article, we will explore these challenges, offer potential solutions, and provide reference to two case studies that demonstrate successful marketing strategies in the professional services sector.…
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Selling or Buying Professional Services
In professional services, the approach to selling can vary depending on the specific context and nature of the services being provided. However, it is generally recognised that people “buy” professional services rather than being “sold” to. This perspective is based on the understanding that professional services are typically complex and intangible, requiring a collaborative and…
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