Our value proposition is simple : CONVENDIA Investment Analyser works with Revenue Modeller and where relevant Mining Modeller. It helps a firm forecast its own complete cashflows and work out the fair value of the firm on various assumptions about funding requirements if cash consuming or ability to do share buybacks if cash generative.
This helps a board and shareholders decide what to do, and at what price per share a sale would be sensible now versus carrying on to try to make the company more valuable per share. While many companies will use CONVENDIA Investment Analyser only as a confidential internal tool, some of the more confident companies may wish to share the outputs of the model to justify higher valuations to investment analysts, M&A firms and ultimately to potential Trade buyers or Private Equity buyers. CONVENDIA creates very significant shareholder value through allowing your financial decisions and forecasting to be based on better and more objective information.
A potential buyer of the company will usually have much less information than management, but if management can be persuaded to give sufficient information to potential buyers then CONVENDIA Investment Analyser is a perfect tool to allow buyers to evaluate at what price it is worth buying the shares or taking a controlling stake, and what the risks are if the assumptions change.
For example in the software industry what would be the change in value of the firm if revenues from a key customer declined by 50%, or if some key deals in the pipeline are closed ? In the mining industry what would be the change in the value of the firm if the resource moved from inferred to proven and probable, or if the resource estimates on a particular project went up by 50% ?
By removing financial fog, it is more likely that a buyer of a company will be willing to pay a higher price for a good company because an appreciable amount of the uncertainty is removed.
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