ValueOpt Overcomes Challenges
Four clients we serve
PE and VCs
Primary challenge: Lack of share-price feedback.
Private Equity and VC investors can streamline deal selection process by filtering firms based on defined criteria. Create “one version of the truth” relating to intrinsic value of targets and the enterprises in your portfolio.
- Deal Sourcing and Selection 80%
- Valuation 85%
- Market & firm-specific risk 75%
- Post-investment value-add 80%
Public and Private Enterprises
Primary challenge: Managing stakeholders’ expectations.
Executive teams and Boards can make and articulate effective capital investments and clear, transpartent and rational path-to-growth strategies by leveraging our artificial intelligence, scenarios and strategy lattices.
- Misaligned incentives 75%
- Capital inefficiency 85%
- Valuation of growth options 90%
- Relevance of Financial Reporting 80%
Activist / Direct Investors
Primary challenge: Remedy underperformance.
We create robust, reusable models and original research for valuation and selection of targets for activists and investors seeking options (investment, activism, take private/public options, hedge fund creation).
- Better returns 95%
- Shifts in strategy 85%
- Executive compensation, performance 90%
- Governance 80%
Industry / Sector Specific
Primary challenge: Peer group comparisons.
Our research reveals leaders and laggards within industries. Risk emerges from those strategically and operationally challenged (lower ROIC, higher cost of capital, suboptimal capital allocation, capital market expectations).
- Fiduciary Risk 75%
- Stakeholder/Reputational Risk 85%
- Directors & Officers Liability Risk 90%
- Financial & Operational Risk 80%
IVO Solution Portfolio
Automated Functions to Realize Real-Time Improvements in the Metrics that Matter
Deal Source™: Faster, More Objective Deal Sourcing
Filter firms based on objective criteria
- Increase universe of potential deals (public & private)
- Streamline due diligence process
- Evaluate deals based on analytics that matter
- Reduced risk of cognitive biases
Capital Allocation Efficiency™
Align capital allocation initiatives with the company’s path-to-growth strategy
- Go / No Go decisions at each milestone based on analytics
- Dynamically reallocate capital to most promising initiatives
- Unlock value of managerial flexibility
- Mitigate impact of cognitive biases
Advanced analytics to optimize free cash flow
- All sources and uses of cash summarized
- 5-year time horizon for forecasting periods
- Separate modules for monthly, quarterly, annual
- Assumptions linked to opportunity revenue or cost of revenues
Enterprise Value Optimization™
Integrating the disciplines of Finance and Strategy to manage growth and shareholder value creation
- Create forecasts, what-if scenarios
- Create data visualization and dashboards
- Transparency on impact of capital allocation
- Mitigate impact of cognitive biases
Real-time analytics and strategies for thriving in uncertainty
- Artificial Intelligence – Strategy / Decision Lattices
- Monte Carlo Simulation used to create probability ranges
- Embedded options evaluated at each milestone
- Strategic tactics aimed at specific scenarios, e.g. Joint Ventures, Spin Off, Sell Off, scale up or scale down
Balances executives’ short-term objectives with long-term growth initiatives.
- Executive comp plan design
- Utilize economic profit and return on invested capital metrics vs. Accounting / GAAP-based figures
- Integrated Risk Management
- Improved governance: separate managerial skill from luck
Increase overall effectiveness and impact of a Board with the right tools
- Revenue governance to ensure companies reach goals and generate value
- Transparency on the impact of capital allocation decisions
- Transaction readiness – analyze and validate aspects of potential transactions (buy-side or sell-side)
- Create and operate advisory boards to provide safe harbours for executives