Valuation Blueprint^©

Our valuations are closely connected with the underlying business and the company’s  Strategy Blueprint^©.

For that reason, our starting point for any valuation is to understand the business and to analyse and visualise how value is created, delivered and captured.  

We leverage our Strategy to Valuation Multidisciplinary model^© to look through multiple lenses to analyse how the company’s capabilities system connects to the four key value drivers: revenue, margin, reinvestment and risk progression. 

Our approach makes it possible to incrementally build up a company’s valuation in three steps:

1. Asset Value: the value-based on the reproduction cost of all assets including intangibles, assuming the company is in a viable industry.
2. Earnings Power Value: the value-based on long term cash flows adjusted to reflect no growth, one-off accounting charges and cyclical effects. If a company has a competitive advantage then it will be above the asset value.
3. Value of Growth: the extra value created when a company can find and undertake investments with a return on invested capital above its cost of capital. 

Unlike a traditional discount cash flow valuation, the above method (which follows the value investment philosophy) does not mix together relatively certain valuations (asset values) with very uncertain ones (the value of growth).

Moreover, it enables us to identify the critical levers driving value and advise clients on which levers to pull and how.

Your Top Benefits from our Valuation Blueprint

• Valuations that are information-rich, insightful and transparent
• A higher business valuation is awarded to those with a blueprint
• M&A analysis and integration that measures and delivers the value