Join us for an evening with Wharton professor Peter Fader at BCG Toronto. Drinks and food will be provided. Tickets are free for Penn-Wharton Club of Toronto members, current Penn-Wharton students, and admitted students. Tickets are $5 for other non-club members. Members, login and click here to get free tickets!
Prof. Fader will discuss new ways of valuing corporations from the "bottom up" — i.e., determining the forward-looking financial valuation of the customer base — as a complementary perspective to the standard "top down" methodologies that dominate current valuation practice. This notion, sometimes called "customer equity" is gaining increasing interest, awareness, and adoption among a variety of functional areas both inside corporations (e.g., corporate development, business intelligence, accounting and finance, marketing) and outside of them (e.g., hedge fund, mutual fund, private equity, venture capital). This is driving a mindset shift away from sales growth at all costs towards sales durability and unit economics.
This session will introduce this new concept, show how it fits within traditional valuation approaches, then apply the methodology to popular publicly traded companies. These examples highlight customer-based corporate valuation's growing ability to move markets, making it a crucially important methodology for company executives to understand.
Beyond the award-winning academic research on this topic, I will also briefly discuss how I am commercializing it through Theta Equity Partners (https://www.thetaequity.com/), a startup that I recently co-founded.
This event will be held at the Boston Consulting Group office: 181 Bay Street, 24th Floor. Please find the elevator bank for floors 14-27 and go to the 24th floor.