Creating value is at the heart of most company decisions but in our experience, it is surprising how often strategic decisions are made with little or no quantification of the impact of these decisions on the value of the company or business.
City Valuation Advisory works with its clients to:
- understand the objectives of the strategic review and the actions management is proposing to take;
- identify those factors which are expected to impact the success or otherwise of these objectives; and
- analyse the impact of the company’s strategic plan in terms of the amount of value added or indeed removed by the various outcomes of the plan.
The output of this process gives clients a report and analysis which sets out the key issues expected to drive the strategic plan and a quantification of the change in value of the business based on the assumptions in the company’s business plan. We also provide sensitivity and scenario analysis so that management can see the impact on the value of the business of changes in key assumptions and outcomes.
We find that the process of having someone independent work with management to assess impact on value of a strategic plan can provide useful insight. It often gets management thinking about the company is a different way and helps them focus on those matters which are really important in driving value for the company, its shareholders and employees.