Increasing regulatory oversight (due to the economic crisis) and the digital economy are changing customer expectations and reconfiguring the financial services industry. Frost & Sullivan's Business & Financial Services group helps clients make sense of global trends and regional developments in the financial services sector, including merger and acquisition and financial assessment trends.
Frost & Sullivan’s Business & Financial Services team provides critical consultative support to financial services clients as well as government agencies, universities, and research laboratories.
Our comprehensive 360° perspective helps clients understand how influencers such as disruptive technologies, Mega Trends, and emerging markets affect the financial services sector. Our global team of cross-industry experts also ensures that our analysis considers how industry convergences impact financial services.
Key Topics of Expertise
Business Plan & Product / Service Valuation
A strong management team, equipped with innovative concept and funded with requisite capital is highly likely to be successful. A component which is vital in securing capital funding is the preparation of business plan. This provides the investors the level of financial requirement and a perspective into management strategies to achieve success. Business plan is incomplete without the valuation of product/service the company offers. Frost & Sullivan’s business plan and product/service valuation solutions strongly leverage our market research capabilities, provides holistic understanding of the techno-economic and social trends. This in turn is reflected in models built with projected cash flows and key financial metrics. Our Business plan and Product/service valuation will enable the business interests to be quantified and assist to design key strategies such as pricing, capital structure, product channels, vendor selection, etc.
Frost and Sullivan’s Business and Financial Services team provides you the expertise to ascertain the economic value of your business. Our ability to leverage on our in-depth market understanding, technical insights and combine it with our valuation capabilities enables us to provide you with a holistic deliverable that would suit all your valuation requirements.
Whether it involves valuation of a specific business unit, operating subsidiary or ascertaining the value of equity stake in a private company, we are here to help. We can assist companies- big or small understand the market value of their business for their various strategic objectives including business restructuring, financial planning, sale, acquisition, liquidation, spin offs or carve outs. We use several techniques such as DCF analysis, peer group valuation, transaction multiples and other methods to ensure accuracy and relevance to the industry and business.
Merger & Acquisition
In a globally competitive and increasingly challenging environment, growing inorganically via mergers and acquisition is a make or break strategic decision that ensures continued success of your organization. Frost and Sullivan can play a significant role in assisting your company in the commercial due diligence process for mergers. We spend time in understanding your business model, strategic objectives and future growth plans to align our diligence process with your vision.
Frost and Sullivan M&A capabilities cover the following areas:
M&A Valuation: In addition to identifying the right targets, our team of financial experts can provide assistance on ascertaining the right value for the deal based on modeling techniques that include transaction analysis, football field analysis; discounted cash flow analysis and aim at finding the synergistic value that may be generated as a result of merger or acquisition process.
At Frost & Sullivan, we ensure continued growth and successful integration by finding the right investment opportunity for your organization. To know more about Frost and Sullivan M&A capabilities...
Valuation of Start Ups
Start-ups often sound very exciting in terms of their novelty and the possibility of huge returns on capital employed. Frost & Sullivan performs extensive due diligence in the lines of understanding all components of the Business plan. This includes the evaluation of critical themes like R&D, patents, product pipeline, quality of the management team, funding plan, product differentiation capabilities, expansion strategy and project profitability. It also relies on its comprehensive industry knowledge to identify the market gap being addressed by the start up. Frost & Sullivan conducts an unbiased and independent assessment of the start-up’s capability to scale up and backs up its recommendations with key performance indicators to help venture capitalists and angel investors to evaluate the start-up.
Technology & License Valuation
A breakthrough technology is often at the heart of all exponentially growing businesses. However, many technologies that appear very promising may not meet with commensurate commercial success. Frost & Sullivan aims to objectively assess the relevance and commercial viability of new technologies and licenses. This involves a direct interaction with the innovator, potential consumers, industry participants, and the financial community. Substitute technologies are studied in depth to critically evaluate the disruptive nature of the new innovation. Through in-depth financial modelling the benefit of the technology is quantified over a ten year period with P&L statements and Balance Sheets forecast for the same. The key performance indicators are juxtaposed against industry measures and the techno-feasibility bankable report provides valuable recommendations to entrepreneurs.
Project Feasibility & Viability Studies
One of the key components for a firm’s successful growth is effective and accurate investment decisions in strategic areas. To evaluate and find appropriate investment decisions, Frost & Sullivan performs a detailed feasibility study that analyses all the operational and financial aspects of a project. This includes demand supply gap, then identify optimum production plant, product mix, the capital expenditure, wages and salaries, sales and expenses, working capital management and financial statements including forecasts. We also understand that market situations change rapidly. Our robust models allow you to change key project variables and instantly view the overall impact on the project. This helps key stakeholders including financial institutions to assess the financial viability of the project and thus help in effective decision making.
Financial Planning & Analysis
A sound financial plan is the corner stone to a successful business. Backed by in-depth industry knowledge, financial analysts from Frost & Sullivan will work with your in-house team of experts to understand your firm's vision, objectives and the resources to achieve them. Upon establishing a planning horizon, we will do a cost structure analysis, create a budget, identify any gaps/risks in the existing framework and come up with a financial plan to suit your firm's needs. We will continuously work with you to implement this plan and analyze profitability, solvency and liquidity parameters for your organization that result from the execution of the suggested financial plan.
Turnaround Strategies for Distressed Firms
A firm that is at the helm of its business may face distressed times which may be due to a multitude of reasons including but not limited to a decline in market share, falling margins, cost increases, plummeting revenues, changes in industry, competition etc. The reasons for the above could stem from both internal and external sources. Frost & Sullivan identifies such sources and through a combination of operational and strategic methodologies suggests turn around strategies for firms in distress. Cost reduction strategies, financial restructuring strategies through a thorough financial analysis, product and market re-defining strategies are among the many ways we help you to see the light of the day during tough times.
Equity Research for Public Companies
Frost & Sullivan is delighted to have been selected to participate in the Analysis Program initiated by the Tel Aviv Stock Exchange Analysis (TASE). Within the framework of the program, Frost & Sullivan authors and publishes equity research reports on Technology and Biomed (Healthcare) companies that are listed on the TASE. Key goals of the program are to enhance global awareness of these companies and to enable more informed investment decisions by investors that are interested in "hot" Israeli Hi-Tech and Healthcare companies.