Strategic investments – How valuators facilitate decision making

Description

Abstract: Some private business owners make major decisions by relying on gut instinct, rather than financial metrics. But investments made on a “hunch” often fall short of management’s expectations. This article describes several forms of financial analysis that valuators may conduct to systematically probe companies’ finances and introduce objectivity to the decision-making process. This can help management rein in unrealistic projections and make optimal choices in today’s volatile marketplace.