Apps Add Value to Business

Apps add value to business

I run a marketing/PR agency that has developed apps for clients as one of our services. The agency is in merger talks with a competitor that doesn’t offer this – can we include the value of the app service alongside our other assets in negotiation and if so how would the service be valued?

Rodney says;

This should certainly be part of your negotiations; it is your unique selling point and potentially the most important asset.

There are a number of ways to assess the value of app technology, but first look at what this service does for your firm and where it lies in your own service arrangements for clients.

Does the app service attract new business, retain clients for longer, deliver high profit margins, and offer attractive growth levels?

Is it difficult to replicate, or has the business developed a reputation as a leader in this field? If so, the valuation exercise is a simple sum based around an enhanced understanding of business development opportunities and profit margins.

Value is a combination of market share, and price premium which equals shareholder value.

With this knowledge, you can deliver an overall business valuation underpinned by your brand, people skills and service offering, and not just a valuation but a figure that someone will pay.