Value drivers are anything that can be added to a product or service that will increase its value to consumers or increase the value of the business. The drivers differentiate a product or service from those of a competitor and make them more appealing to consumers or buyers of the business.

The greatest benefit of a value driver is that it provides a competitive advantage to a business, giving that business an upper hand in its industry. Value drivers can come in many forms, such as superior brand awareness or revolutionary technology.

Value drivers will make a company’s products seem better than its competitors’. By creating as many value drivers as possible, a company can boost its leverage on the marketplace. They will further influence consumers to purchase that product. These provide products with distinguishable traits that companies can use to make their respective products more desirable in the eyes of the consumer.

To continuously add value to products and services, businesses should constantly be monitoring the market so that they can be the first to take advantage of changes in demand and consumer behavior. Value drivers do not have to directly relate to a product. Something such as a reputation of having great customer service can be a value driver for a company.

The value of a business from an arithmetical point of view and put simply is expressed as earnings x a multiple.

From a valuation perspective value drivers fall into two distinct categories, namely:

• those that impact on earnings; and
• those that impact on the multiple.

Commentary on value drivers can be found in the following article which is freely available on the internet.

https://www.valuationresearch.com/pure-perspectives/top-10-drivers-enhance-company-value/