Stop Guessing at Value Creation with Value Scout’s Value Recon Feature

Picture this: you are working with a client on a value creation engagement. They plan to exit in 3 years… but need to create an additional $6M in enterprise value- so an incremental $2M in value per year. You’ve worked with them to construct a plan that helps close that gap. But how have you determined if the plan will yield that needed $2M per year?

It can be difficult to assign value to specific objectives or initiatives in your or your client’s value creation journey. Intuitively you know that opening a new branch location or reducing overheads will increase enterprise value…. but how much? You know that there are value growth targets to hit, but actually estimating how an initiative fits into that plan can be daunting at best (and a step that’s skipped entirely at worst).

With Value Scouts AI-Assisted Value Recon, you can stop guessing what potential value you or your client’s value creation initiatives can provide. With Value Recon, you can capture the estimated value of completing a particular task or initiative without the hassle. Simply run through the required data inputs, and our algorithm will crunch the numbers on what a specific plan initiative is worth. Doing this helps you keep tabs on whether the elements you and the client have built into the plan will likely generate the results you need.

Value Scout’s algorithm bridges the gap between planning and value creation and allows you to knock down value creation tasks with purpose and lead you, your company, or your client closer to the overall value creation goals.

How Does Value Recon Determine Value for Your Tasks?

Value Recon gives users four ways to estimate value creation for initiatives:

  • Revenue Growth
  • Gross Margin Improvement
  • Cost Reduction (“Cost Out”)
  • Acquisition

 

For each item, our system will prompt you for specific data points that feed into our algorithm- resulting in an instant estimate of the worth of a planned initiative.

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How Does The Algorithm Work?

The algorithm attached to this feature essentially takes the information given by a business to provide a personalized experience to the Value Creation Strategy system. This AI-assisted algorithm uses a series of user inputs combined with data about your company and broader market data.

Improved Estimates Overtime

What’s more, over time, our system will learn how successful you are at achieving your goals and dial in value assessment even further. Basically, the better you get at using our tools, the better our tool will be at scoring your value creation efforts!

Value Recon benchmarks a user’s variable inputs against their performance after a defined period. (depending on how often the current market value is assessed). The algorithm then adjusts to a user’s tendencies and provides a more accurate value estimate.

How Is This Useful?

For you, as a Value Scout user, this connects the aspects of planning and value creation into one. Utilizing this combined feature can help you manage and plan your or your client’s value creation initiatives.

  • By using Value Recon to assign value to a given task, it allows you to prioritize the tasks by identifying the most significant area of value creation opportunities.
  • Value Recon allows business owners and advisors to gauge their personal or client’s performance levels by individuals, initiatives, departments, and processes.

Value Scout’s AI-Assisted Value Recon will help you stop questioning the value of your value creation initiatives. Plan, organize, sort, and most importantly, create value!

Next Steps

Now that you’ve learned about this killer feature, it’s time to try it out. Get a demo today!

Author Summary

Dan Doran

Dan Doran

Is the Founder of Value Scout, Quantive and the 2019 Exit Planner of the Year. He is a recognized expert and speaks frequently about M&A, valuations, and developing more deliberate value creation strategies.

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