Sole reliance on financial figures to evaluate an M&A transaction is a little like relying only on gas mileage, color and horsepower to evaluate a car while ignoring factors like comfort, stereo system, resale value, and image. You end up missing half of what provides value to the owner. Only by understanding the impact of a business' intangibles on shareholder value and sales growth can an investment firm begin to reverse the low success rate of today's M&A activities.
With this type of exploration, investment firms can more reliably forecast sales and expense trends and highlight probably human and capital resource investments before the transactions happen. This not only "right sizes" the purchase price but also sets realistic expectations on both sides of the transaction.
IVR refines and provides context for the basis of most investment decisions - future cash flows. In order to do this, IVR explores:
- provides the missing facts to make more accurate predictions and increase transaction satisfaction on both sides.
- provides more accurate forecasts of success and likely required investments and strategic implications.
FiveTwelve's IVR is not for all investment and equity firms. Because of the collaborative, open nature of the RADCL Research process, it is best suited for acquiring firms that are looking to actively partner with their acquisitions to create complimentary, accretive business investment decisions. It does not work well in secretive transactions, and it does not effectively support "invest and flip" decisions. The key to making IVR work is leveraging open communication between the seller, customers and buyers, and using the results to inform both investment decisions and strategic planning.
CVR adheres to 