As a result, important questions can be answered, such as:
- What is the strategic value of acquiring a technology that offers production flexibility over alternative methods?
- Is it worth structuring a deal with a potential partner to hedge downside risks while retaining upside potential?
- How much premium should be paid 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 build extra capacity to capture upside opportunities?
- Should you wait for more information before making capital investments? How much should you pay for such information?
Traditional analyses often fail to consider future risks and business flexibilities, leading to poor decisions based on flawed information. The ability to quantify strategies gives companies the precision needed to make optimal capital and investment decisions and to gain the upper hand in negotiations. Traditional forecasting models often get the risk or strategic value wrong, leading businesses to enter deals without a clear idea of value. By not recognizing risks and strategic option values, companies may persist with a losing strategy, missing opportunities.
Real Consulting stacks the odds in your favor by arming your business with the necessary information to make informed decisions. Without this information, you could be leaving the future to chance.