Speakers: Charles DeLacey | Greg Alexander, SBI

corporate-strategy-not-all-revenue-growth-is-equal

 

On today’s show we discuss the different types of revenue growth and their impact on company valuation. Our guest is Charlie DeLacey, the Vice President of Corporate Development and Strategy at the Kenan Advantage Group. Kenan is a $1.5 billion dollar transportation and logistics business.

 

Charlie is responsible for driving and shaping the strategy of Kenan Advantage Group, who has experienced 10-15% growth on an annual basis.

 

The types of growth discussed include organic and inorganic, and the return on capital each type of investment drives.  When given the opportunity to grow the same amount of revenue through organic or inorganic, typically organic growth will drive greater value creation.  However, there are other variables that must be considered such as time, capital requirements and execution risks.  Listen as Charlie describes how to make the decision between organic and inorganic growth.

 

It’s difficult to grow revenue faster than your industry’s growth rate and faster than your competitors. Leverage the How to Make Your Number in 2018 Workbook to access a revenue growth methodology to hit your number quarter after quarter, and year after year.

 

Charlie responds to three key questions on the decision between organic growth and inorganic growth:

 

  • Do different types of revenue growth earn different returns on capital?
  • Is organic growth better than growth through acquisition?
  • How should you decide between organic or inorganic growth?

     

Ultimately investments are being made that create value and generate a return equity value for shareholders.  Listen as Charlie explains the different types of revenue growth, and how they impact the way your company is viewed.

 

Have expectations gone up and left you wondering if you can make your number? Here is an interactive tool that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate yourself against SBI’s sales and marketing strategy to find out if:

  • Your revenue goal is realistic
  • You will earn your bonus
  • You will keep your job

 

Rev_Growth_Diagnostic_1.3