NMC Health: Demystifying Reverse Factoring: The “Three-is-a-Crowd” Financial Analysis Problem

Abengoa S.A. (now bust) applied this technique heavily, Carrillion plc (now bust, see LINK to our former blog post [only in German]) too… and recently short seller Muddy Waters seemed to have it detected at NMC Health plc (LINK to the report), followed by a steep stock price decline of the United Arab Emirates based and UK-listed healthcare […]

Matthias MeitnerManaging Partner, VALUESQUE

Better Information or Wiping-out Traces? – The Re-Segmentation Financial Analysis Problem

Change is part of doing business. Today more than ever. And where there is change in the business there is also need for change in the reporting structure. IFRS 8 (Operating Segments) requires companies to disclose more or less detailed information about their operating segments. Important: This reporting should be based on internal management reports […]

Matthias MeitnerManaging Partner, VALUESQUE

Finding out the Worth of a Cannabis Business—Before the IRS Does

During William Fowler’s nearly 20-year employment with the IRS as a Federal Commissioned Officer, he developed a process to assist with more accurately valuing businesses and corporations being audited. By implementing the process and simply asking the right questions, along with his expertise in valuation, he increased the IRS’s western region’s receipts by over 500% […]

Doug BaniaPrincipal, NEVIUM

When Remuneration Targets meet Impairment Assumptions – The Weak-but-Strong Financial Analysis Problem

We know a couple of investors who once scratched their heads about the Chemring Group Plc. 2011 annual report (reporting date 31 October) and then decided to set a reminder alert for the next time when the general economic environment will show some signs of weakness. This should make sure that they do not miss […]

Matthias MeitnerManaging Partner, VALUESQUE

Schuiteman Corporate Finance joins IR as the exclusive Business & Asset Valuations Member in The Netherlands

IR Global, the world’s largest exclusive network of advisory firms is delighted to introduce Robin van Denderen of Schuiteman Corporate Finance. Robin has joined IR as our exclusive Business & Asset Valuations Member in The Netherlands. Schuiteman Corporate Finance can assist you in all aspects of business strategy, mergers & acquisitions, forecasting, financing and business valuations. […]

Robin van DenderenAdvisor, Schuiteman Corporate Finance

Shadowfall’s Attack on Eurofins – The “Related Party”-Financial Analysis Problem (Background)

On 16 October 2019, short-seller Shadowfall issued a report on Eurofins, a Luxembourg-based laboratory services provider, raising several concerns regarding – amongst others – opaque intragroup and related party transactions (see LINK). So far, we cannot state whether the allegations are true. And it is also not the goal of this blog post to detect this. […]

Matthias MeitnerManaging Partner, VALUESQUE

DS Smith’s Exceptional Charges – The “in-P&L-Presentation”-Financial Analysis Problem

IFRS is quite clear on what should be reported in the income statement for determining operating profit measures: Everything that generally qualifies as a revenue or an expense! There are no exceptions. Admittedly, this has not always been the case but it is the strict rule since the early 2000s. US-GAAP basically follows the same […]

Matthias MeitnerManaging Partner, VALUESQUE

Don’t rely on APMs, disaggregate IFRS – GlaxoSmithKline

Alternative performance measures (APMs) can be helpful for investors, but not necessarily the figure itself. It is the disaggregation of performance that is the real benefit. Focusing solely on adjusted measures means you will miss important aspects of profitability. We explain how you can use APMs to better understand performance, but without missing key elements. […]

Matthias MeitnerManaging Partner, VALUESQUE

DOM’s “Underlying Earnings” Definition: The Profit-before-Cost Financial Analysis Problem

No, business is not developing in a great way for Domino’s Pizza Group Plc (DOM). A weak Scandinavian business, high debt burdens, a lot of tension with franchisees who require a bigger share of earnings, and communication confusion around the intensity of these tensions. But at least the reported numbers look ok. According to the […]

Matthias MeitnerManaging Partner, VALUESQUE

Unilever’s Argentina-Accounting Treatment – The Hyperinflation Financial Analysis Problem

Unilever has just announced a couple of days ago that they have changed the way of how to tackle hyperinflationary accounting topics for the calculation of one of its core KPIs, the “organic sales growth” (see HERE). From now on Unilever will include Argentinian and Venezuelan inflation capped at 2% per month in this measure. The […]

Matthias MeitnerManaging Partner, VALUESQUE

Intellectual Property News from Nevium

IP Infringement is Common—and Costly—in Craft Brewing Doug Bania discusses a recent case involving a Guns ‘N’ Roses–inspired beer, explaining how craft brewers’ guerilla-style approach to branding can lead to IP infringement and how damages are calculated, considering the multitude of products that can be associated with popular brews, on Beverage Daily. Non-profits Often Overlook […]

Doug BaniaPrincipal, NEVIUM