We facilitate the maximisation of a business’ potential to create value.
Some core questions often include:
- What is the business currently worth?
- What is its potential?
- How can we achieve the potential?
- What strategic options are there?
- What are the main risks and uncertainties?
- How do we evaluate the options given that each has different characteristics and risks?
We typically aim to generate additional insights into valuation that established methodologies do not. For example, whilst we also use comparables, traditional cash flow and asset-based approaches, these methods provide a numerical value without generating any real insight not the drivers or true range of valuation, nor the opportunities, risks, uncertainties and overall potential.
As appropriate to the situation, our analysis will usually include a consideration of factors such as:
- The long-term macro-context. This could include how key long-term issues (e.g. demographics, globalisation, climate change, sustainability, the energy transition, supply chain and manufacturing innovations) may affect a business.
- The industry context: Each industry is different in terms of its underlying economic forces, its customer needs and behaviours, the competitive environment, product-market trends, the pace of innovation, and the threat of substitutes.
- The business context: Each business has its own stakeholders, objectives, capabilities and culture, and these influence the nature of its competitive advantage.
- The value-drivers: Whilst the high-level value drivers always relate to items such as return-on-investment, growth opportunities, and the cost-of-capital, in practice businesses need to act at a more detailed level to influence these.
Some specific recent engagements have focussed on topics including:
- Strategic and economic business valuation (based on value-drivers, strategic scenarios, uncertainties/risks, reducing biases in forecasting models, highlighting key management actions, and enhancing communications).
- Forecasting, target setting and gap analysis (esp. using uncertainty/risk modelling to highlight true realistic ranges of outcomes and the biases in base forecasts, understand the likelihood of attaining objectives; enhance communications with investors/stakeholders).
- Development and evaluation of strategic alternatives (facilitate internal processes and workshops, support with market/economic/internal research, analysis/modelling etc.)
- Business planning and portfolio optimisation (analytic approaches to achieving KPI objectives by deploying resources/capital in the most effective way, highlighting trade-offs, constraints, and required management decisions).
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