On the surface, CoreValue is an elegantly simple tool. Underneath, our complex algorithms, vetted by thousands of businesses, advisors, and academics over 30 years, give companies the data and tools necessary to build sustainable, transferable Enterprise Value.
After providing information about the company including industry, annual revenue, and profit, we ask a series of questions around 18 Value Drivers so we may compare the company’s status relative to best practices. Each level of CoreValue asks more detailed questions around the drivers. In all, we offer a 239‐point assessment. Scores are applied and ratings are calculated. We then plot the company’s Enterprise Value and compare it against an industry norm to create a value gap. This identifies how strong, or vulnerable, the company is and how much value is being left on the table due to operational and market deficiencies. Our algorithms measure the risk to future revenues presented by the company’s current operational processes and procedures and calculate Enterprise Value for the company based on that risk. CoreValue then calculates the increase in Enterprise Value possible if operational performance is improved, by lowering risk. Red Flags identify those risks which may prevent the monetization of some, or all, of the company’s Enterprise Value, and tasks are suggested to further strengthen performance and value, and reduce risk.
The algorithms are based on work started at the Massachusetts Institute of Technology (MIT) and proven in the market for over 30 years. MIT is the premier engineering, and business engineering, university in the US. CoreValue’s patent‐pending methodology has been used with thousands of companies to capture and grow tens of billions of dollars in Enterprise Value. The algorithms can be broadly explained as comparing the respondent company’s due diligence performance with the due diligence checklists from approx. 5,000 closed transactions. CoreValue benchmarks the subject company against the real world. Vetted by hundreds of professionals, including top US bank Morgan Stanley and one of the Nation’s leading valuation teams, Business Valuation Center, the algorithms have proven accurate and the methodology effective. Our algorithms focus on operational performance, e.g. a company’s ability to prove it will produce and increase financial output ‐ revenues, profits, into the future, as due diligence does. In contrast, straight valuation algorithms use only financial data (yesterday’s
