The Danish company broker M+A Virksomhedsbørsen A/S is now presenting a new concept under the name Year Over Year Evaluation.
The solution will help Danish owner-managers who, for example, want the company valued, or who want to document business areas and level for investors and financial partners.
If, as an owner-manager, you need to value your company before a possible sale, start a strategy process or want to document the company’s business areas and status to, for example, investors and financial partners, it requires that you can create and document a precise overview of the company’s current position and level.
According to the company broker M+A Business Exchange A/S it can be an extremely difficult and time-consuming process. In recognition of the lack of time and ability of many owner-managers to create this business-critical overview, the broker is now launching a new – and for the industry ground-breaking – concept which facilitates the process in a professional and structured way.
The concept is called Year Over Year Evaluation. Through a combination of self-reflection, an external analysis, the Balanced Scorecard model and an in-depth and detailed interview, where the company is asked about vital elements in 14 areas of their business foundation, the owner-manager is provided with a clear picture of the company’s performance and potential. The core elements here are the successor quality, investor readiness and the degree of capital attraction.
– As the biggest player in the industry, we feel that it is our responsibility and the only right thing in a difficult process like this to take the owner managers by the hand before and during this often very demanding process. Based on the extensive market insight we have built up since 1997, with the YoY concept we try to drive a wedge into the market with quality and substance, and as a whole the concept is a structured version of the approach we have already had success with in many year, says Frank Jensen, director of the M+A Business Exchange and elaborates:
– Through the detailed and structured review and evaluation, the companies gain a transparent insight into and understanding of their current level and starting point – i.e. their prerequisites for maintaining both the earnings level and the value base under the current management or ownership after a change of ownership or management. Thereby, in the sales process, we become better at navigating more effectively in the mediation and negotiation process and with a much greater overview and in this way create and maintain interest in the company as well as defend the value level on which the company is assessed.
The concept is for everyone
According to Frank Jensen, the concept can be used in most companies – even if there are no plans for a divestment.
– The areas in the business foundation that are evaluated are of decisive importance for the company’s growth and development, as well as the status and readiness with which operations are carried out in a large number of relevant areas in relation to relevance and level. All companies in all phases of their life cycle can use this tool to assess themselves and in the same process get conclusions and recommendations for actions and activities that will improve and strengthen the business foundation in the company, says Frank Jensen.
The process behind the M+A Business Exchange’s Year Over Year Evaluation consists of five steps:
Step 1: Preparation.
Step 2: Detailed Interview.
Step 3: Self-assessment.
Step 4: Analysis and Rating.
Step 5: Reporting and recommendations.
Source: it-kanalen.dk
