Strategic Valuation Advice
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With the spotlight now firmly on corporate governance, there is increased investor scrutiny of the strategies adopted by company management teams, the risks associated with those strategies and the value created by management teams over the medium to long-term.
We provide insights and solutions in relation to business portfolios, investments, non-core assets, intellectual property and capital structuring, with a key objective being to assist management teams to make value-enhancing decisions.
Contact us if
- You wish to understand which parts of your business create value be generating returns in excess of the cost of capital and, importantly, which do not.
- You have excess cash and need to decide how best to utilize such cash (i.e. to repay debt, to effect a share buyback, to undertake an M&A transaction, to finance a capital investment project etc.).
- You wish to understand the cost of capital of your various businesses in order to benchmark target rates of return.
- You believe that your company is undervalued by the market and want to understand how to close the “value gap”.
How we can support you
- Business Segment Valuation Analysis:
- Through the robust analysis of historical business performance and detailed modelling of future outcomes, our team can help you identify the key drivers that impact the value of the different segments of your business, as well as the critical interdependencies of the segments, enabling you to understand which businesses within your portfolio typically generate returns in excess of their cost of capital and which do not. Such analysis can be utilized to make better strategic decisions in relation to the allocation of capital and resources within your organization.
- Cost of Capital:
- Having a robust understanding of your company’s cost of capital is crucial to making value-creating investment decisions. We can assist you with the estimation of your company’s cost of capital at the overall firm level, or by geography or business segment.
- Investment and Capital Allocation Decisions:
- We can assist you in assessing the value impact of potential projects and investment opportunities, with the aim of allocating new or existing capital resources within your company in the most efficient and value accretive manner. We also advise on the most appropriate uses of excess cash from a value perspective.
- Value Gap Analysis:
- Many management teams implicitly believe that the market undervalues their business but lack the tools to support such assertion and close the “value gap”. Through detailed market-level research and company-level valuation analysis, we can help companies quantify the value gap and understand why it exists so that action can be taken to eliminate it. This process may involve us assisting management to identify and appropriately disclose the key information that market participants require to gain an accurate view of the value of their company.