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Software & Downloads
Software & Downloads

Impact to your business, competitive edge and peace of mind

Using the Real Consulting methodology will give your company the edge over competitors by outwitting the market, understanding and harnessing the real value of each risk or strategy. Asian companies tend to acknowledge but ignore non-quantifiable risks when making decisions, preferring to rely on a system of trial and error. But nowadays the data generated by a system of scenario analysis is inaccurate, outdated and insufficient. Managers used to focus upon to data-rich risks that could be calculated such as credit and liquidity, but tended to overlook unquantifiable risks. With the help of Real Consulting, these risks can be measured, which means business strategies and decisions can be quantified.

As a result, important questions can be answered, such as:

  • What is the strategic value to your business of acquiring a technology that gives production flexibilities over alternative methods?
  • Is it worth structuring a deal with a potential partner that can hedge downslide risks while retaining the upside potentials?
  • How much premium should you pay to acquire the ability to switch suppliers or materials from different countries?
  • What are the optimal timing and decision points to abandon an R&D project, outsource production, or to build extra capacity so you can capture the upside opportunities?
  • Should you wait for more information to become available before engaging your capital investments?
  • How much should you pay to acquire such information?

The inability of traditional analyses to take future risks and business flexibilities into account mean that businesses often make poor decisions based on flawed information. The ability to quantify strategies gives companies the precision needed to make optimal objective capital and investment decisions and to gain the upper hand in negotiations.

Other companies using traditional forecasting models will get the risk or strategic value wrong by employing analyses which are often shortsighted and incapable of placing a proper value on different strategic options. In effect, this means many businesses do not have a clear idea of value before entering into a deal. By not recognising risks and strategic option values, many companies will persevere with a losing strategy, failing to capitalise on windows of opportunity. Real Consulting stacks the odds in your favour by arming your business with the battle plan to make a decision.

Without that information, you could be leaving the future to chance.

  • "Unfortunately, the financial tool most widely relied on to estimate the value of a strategy is the discounted cash flow which assumes that we will follow a predetermined plan regardless of how events unfold. A better approach to valuation would incorporate both the uncertainty inherent in business and the active decision making required for a strategy to succeed. It would help executives to think strategically on their feet by capturing the value of doing just that - of managing actively rather than passively and real options can deliver that extra insight."
    - Harvard Business Review (September/October 1998)
  • "The real options revolution in decision making is the next big thing to sell to clients and has the potential to be the next major business breakthrough."
    - Business Week (June 1999)
  • "Doing this analysis has provided a lot of intuition you didn't have in the past… and that as it takes hold, it's clear that a new generation of business analysts will be schooled in options thinking. Silicon Valley is fast embracing the concepts of real options analytics, in its tradition of fail fast so that other options may be sought after."
    - Business Week (June 1999)
  • "With the degree of change going on in industry, the old models just don't work anymore… one promising tool for determining the strategic worth of an acquisition is Real Options Valuation."
    - Industry Week (December 6, 1999)
  • "In contrast, the beauty of Real Options theory - an approach that ties the value of small initial investments to later opportunities for big payoffs - is that it works well with uncertainty and encourages management flexibility."
    - Industry Week (December 6, 1999)
  • "Real options provide a powerful way of thinking and I can't think of any analytical framework that has been of more use to me in the past 15 years that I've been in this business."
    - Bloomberg Wealth Manager (November 201)
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