Our concept of Actionable Strategy isn’t a bound set of decks, collecting dust on a shelf, that are looked at every couple of years when someone needs a high level pie chart or is looking for a presentation format. Our concept is that a strategic plan must contain both the statistics and drivers answering “why?” and the industry view, gap analysis, action steps, resource requirements, specific target profiles, schedule, path markers, and valuation assessments that also answer “who?”, “what?”, “how?”, “how much?”, “when?”, “what if?”, and “how do we know we’re on the right path?”.
In short, an Actionable Strategy is just that, Actionable!
Our strategy and problem solving experience includes everything from restructuring and turnaround to “clean slate, blue sky” definition of a “third leg” upon which to grow a conglomerate; from acquisitions to marketing; from technology and product development to supply chain. At TCC, we understand that a strategy for success is crucial regardless of function or scale.
Market Understanding
One of the most important components of business success is Market Understanding. That is, to understand an industry or segment; its evolution; the impact of changes in price, demand, raw materials, channel, capacity, competition, regulation, reimbursement, consumer preference, and other factors going forward; and the best business models for success. At TCC, we have observed that successful businesses learn, create, or back into the correct business model.
Market Understanding is also important in acquisitions. Many acquisitions are not “pure plays” – that is, the acquirer ends up with extraneous businesses they neither want nor understand. Market Understanding can provide the acquirer with the necessary information and valuation to manage and minimize the risk associated with the extraneous businesses.
Objective Valuations
Valuations are used in many situations for many reasons – to make decisions, to close a deal, or to comply with government regulations. Our founder has over 20 years of experience providing financial assessments and strongly believes that valuations must be objective, realistic, transparent, and supportable. He has valued development portfolios, products, technologies, and businesses.
TCC uses multiple approaches to triangulate on a valuation and then test its sensitivities. We use all three valuation methods as appropriate: income or discounted cash flow (DCF), market comparables, and asset- or cost-based. For complex, uncertain situations, we have found simulations using DCF with decision tree analysis and market comparables to be a very useful combined approach.
We test sensitivities by both simulating specific scenarios of high interest or concern and using Monte Carlo methods. Our valuation results are presented in the format that most clearly conveys their meaning to the client, whether that is a table, tornado diagram, dashboard, or some other graphic. As with all of TCC’s offerings, we can provide our results in presentation format, written reports, or both, depending upon the client’s preference.
Business Simulations
Good business simulations create value through Market Understanding, scenario and sensitivity analyses, identification of value drivers, better predictions, and ultimately, improved decision making. Simulations deliver clarity from complexity and ambiguity. Business simulations avoid the cost, time, interruption, and possible disasters that can occur when “experimenting” with a running business. Please read more about TCC’s simulation process under Business Simulations.
In short, an Actionable Strategy is just that, Actionable!
One of the most important components of business success is Market Understanding. That is, to understand an industry or segment; its evolution; the impact of changes in price, demand, raw materials, channel, capacity, competition, regulation, reimbursement, consumer preference, and other factors going forward; and the best business models for success. At TCC, we have observed that successful businesses learn, create, or back into the correct business model.
TCC uses multiple approaches to triangulate on a valuation and then test its sensitivities. We use all three valuation methods as appropriate: income or discounted cash flow (DCF), market comparables, and asset- or cost-based. For complex, uncertain situations, we have found simulations using DCF with decision tree analysis and market comparables to be a very useful combined approach.