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The Mensura Companies
Business Advisory Services
Business Advisory Service
The Information Book Giving Form to Substance and Laying the Foundation for Value Realization

The impact of even the best insights is a function of how effectively ideas are conveyed. As a result, Mensura seeks to develop a deep understanding of our clients, so that we can assist them in uncovering value in their enterprises and convincingly communicate that value. In order to do this, we take a partner approach to business, which combines with Mensura’s business evaluation method—ultimately resulting in a tangible Information Book, giving form to what may otherwise be loosely connected pieces of information and providing interested parties with a comprehensive, clear view of all the critical considerations of the subject business. In turn, the Information Book gives business owners the ability to gain perspective on their business as well as make a solid case for the valuation of their organization. This perspective also helps Mensura and business owners to chart out a strategy for the business to realize value.

 

The Information Book gives form to your substance, providing  you with a comprehensive view and analysis of your business,  while communicating value to partners, investors, and the  marketplace.

 

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Strategic Planning

Whether in conjunction with the Information Book or as a standalone advisory assignment, Mensura offers a systematic methodology for uncovering the variables that impact a business’ operations within its current environment and potentially impacting its future success. In short, our goal is to work with your business to define a strategy or direction for the organization and make decisions about allocating the resources needed to pursue the strategy. The strategic planning process begins with asking questions and listening. For us, the questions boil down to:

  • What does the business do?
  • For whom does the business do it?
  • How does the business excel?

From here we identify strengths, weaknesses, opportunities and threats to the business and how they may be utilized or addressed. The end result is a strategic plan that provides a clear understanding of (i) the current situation and how it came about; (ii) the goals of the owners and managers (reaching an ideal state) and (iii) the path to reach the defined goals.

 

Mensura will help you engage in strategic planning that clearly defines objectives and assesses both the internal and external environment to formulate a strategy, implement the strategy, evaluate the progress and make adjustments as necessary to stay on track.

 

If you don’t know where you’re going, any road will get you there.

 

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Valuations

Mensura’s mission in valuation is to empower private business owners to more effectively manage and plan for wealth creation and realization. To do so, we employ detailed asset and enterprise valuation models, practical experience and the knowledge of the business owner to provide comprehensive, timely and cost-effective valuations, often uncovering hidden value that eludes traditional modeling.

 

There is a difference between internal value and fair market value. The internal value of a private business is its worth to the owner, wherein considerations include asset market values, current cash flow, future cash flow, personal fulfillment, pride, family and a host of other considerations. The fair market value is not only what strategic and financial buyers are willing to pay, but also what the unique value is to each potential buyer. In providing valuation services, we are determined to bring knowledge of all potential buyers so as to be prepared to position the business for maximum value realization.

 

Consider these questions and answers:

 

Do revenue and cash flow multiples answer the question of value?

Multiples within an industry are generally widely disbursed and should be used as rules of thumb only. Going straight for a multiple valuation is a sign that one has not done their homework to understand the business.

 

What is value today?

Value today depends on five factors: 1) how much cash is generated; 2) expected growth; 3) the return buyers require on their investment; 4) synergies that may be found with potential buyers; and 5) hidden value, such as terminal asset values, that are not reflected in cash flow.

 

Can a business that loses money be worth anything?

Private businesses may only appear to lose money. But a thoughtful and careful analysis of a company’s financial situation can reveal expenses and inefficiencies that will disappear once the business is purchased by another operating owner. Owners should keep close account of unusual expenses, discretionary expenses and capital-in-nature expenses so that appropriate adjustments can be made and documented for future buyers.

 

Beauty is in the eye of the beholder.

 

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Fairness Opinions

Mensura will provide a fairness opinion, which is an independent objective analysis from a financial point of view, as to the fairness of the financial terms of a transaction. The most common reason for a fairness opinion is to provide substantive, third-party support for the relative value of a transaction involving securities of closely-held and publicly-traded companies.

 

Take note:

 

  • The attributes of a fairness opinion include analysis of risks, deal structure, pricing, potential conflicts, comparable benchmark transactions and timeliness.

  • A fairness opinion does not include a number of considerations. It does not address if there is a better price; just if the price is fair. Complicated legal ramifications of a transaction won't be considered.

 

A fairness opinion should only be one of many tools to assist a  board in gauging what is fair.

 

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Disaster Recovery

Disaster Recovery consultation services are conducted by Graham Cerisola, LLC (www.grahamcerisola.com) which, for more than two decades, has built an expertise in guiding businesses in their recovery from economic and financial harm incurred by natural and man-made catastrophes. We do so by quantifying physical and economic harm to operations, evaluating conditions in light of other economic factors, proposing and implementing recovery strategies, and obtaining the means for recovery, including debt and equity capital. We have brought hundreds of businesses back from severe physical and economic harm across multiple industries throughout the United Sates.

 

We do not advertise, preferring to work off our significant referral base. We extend specialized, concentrated attention to all clients.

 

Event Experience

 

We quickly bring to bear all the skill necessary to navigate  through the aftermath of nearly all conceivable disasters – from  hurricanes and floods to earthquakes – from civil unrest to the BP Oil disaster. Our clients are disaster victims first and we are  tireless in working for their recovery in all regards.”

 

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