1️⃣ Analysis of recurring revenue:
• Assess the stability and predictability of the company’s revenue.
• Identify sources of recurring revenue and the proportion they represent.
• Consider the impact of the pandemic and Covid subsidies received, as well as the possibility of a recession on these revenue sources.
2️⃣ Diversification of customers and markets:
• Examine customer concentration and dependence on certain markets.
• Assess the company’s ability to diversify and adapt to market changes.
3️⃣ Analysis of fixed and variable costs:
• Estimate the company’s flexibility in the face of demand fluctuations.
• Identify measures taken to reduce costs during a crisis (e.g., workforce reduction, process optimization).
4️⃣ Risk and cash management:
• Examine the solvency and liquidity of the company.
• Assess risks related to debts and financial commitments.
• Analyze risk management strategies during periods of uncertainty.
5️⃣ Adaptability and innovation:
• Consider the company’s ability to innovate and adapt to market changes.
• Assess investments in R&D and ongoing projects to address current challenges.
Engage a forensic accountant and a business valuation expert for:
• In-depth expertise and experience in business valuation.
• A thorough report on the fair market value of the company in this difficult and uncertain context.
• Solid support for informed decision-making in financing and investment matters.
#QualityOfEarnings #Banks
