What is hidden value?
City analysts persuasively write about finding hidden value in listed companies based on an out-dated definition: ‘existing, under-valued assets not reflected in company balance sheets nor share prices.’
The Hidden Value Partners’ description of hidden value has a fuller and more comprehensive meaning:
‘unshared thoughts, ideas, insights, and opportunities not yet integrated with
our clients’ visions, competitive advantages, strategies, plans, and results.’
‘Hidden value’ is value hidden from view, unseen, out of mind, out of sight.
Paradoxically though it is also in plain sight, waiting to appear or be asked about, understood and realised as opportunities for change.
By contrast ‘intrinsic value’ is an inherent, natural part of every business – it exists, it is tangible – perhaps the context of the dated Analysts’ view. It is a ‘matter of fact’, already known about, and is simply waiting to be seized upon by accident or daily business activities. It is often under-utilised, forgotten about or not thought of as important at the time it was considered last.
Hidden value exceeds intrinsic value for its potential to transform businesses.
When hidden value is combined with intrinsic value through our inquiry methodology, powerful business transformation strategies and initiatives are possible.