Concentro | Value Enhancement

Using Potentials for the Definite Increase of the Company Value

What is a company worth? This question can only be answered insufficiently by looking at the balance sheet. On the one hand, assets listed on the balance sheet – such as buildings, land or machinery – rarely match the true market value. And secondly, the total value of the company largely depends on how efficiently – that is, with what returns -– the total capital can work. In the long term, the value of the company can be increased by optimizing returns and costs as well as the use of capital. With careful analysis, we determine for our clients in which areas of the company potential value drivers are hidden and how their potential can be translated into concrete value increases.

Increasing the Company Value with an Optimization of Profit and Costs

If you want to increase your income and return, and thus your company value, you should keep an eye on both the cost and the revenue side. On the earnings side, the question arises of how to increase earnings sustainably with an optimized sales strategy, strategic pricing and the optimization of the customer and product portfolio. Also, revenue-reducing components such as bonuses or discounts are in the focus of the analysis.

On the other hand, the pool of cost offers potentials with which the company value can be increased. Purchasing, production, warehousing, internal and external logistics and overhead costs: In all of these areas of business, inefficiencies have crept in for many years or even decades, and their removal can turn out to be a lucrative value driver.

Efficient Use of Capital as a Value Driver

In addition to the revenue and cost flows, the efficiency of the used capital also has a decisive influence on the company value. This raises the question of how much capital is tied up in the sales process, for example in the form of stock on hand or outstanding receivables. The entire financing structure of the company also often offers scope for efficiency gains. Liquidity can be released here through sophisticated investment and working capital management and the internal financing power can be strengthened.

Management consulting with Sustainable Added Value

We conduct a targeted analysis of the fields of activities for our clients in order to identify inefficiencies and to identify the most important value drivers. Here we pay particular attention to the effects on earnings, liquidity and capital commitment. On the basis of this analysis, we develop strategic concepts with concrete recommendations for action and optimization measures, in the implementation of which we are happy to assist our clients on request.