What are 'Red Flags'?
The CoreValue algorithms identify Red Flags. Red Flags are predicted in the Discover initial analysis of company strength and value, and specifically identified in the Deep-Dive Analysis.
Red Flags are existential threats to growth and equity value.
These Red Flags must be considered (and eventually neutralized) when creating a strategic growth plan, an exit plan, or when preparing a company for M&A.
For example, consider the Growth and Equity Value Driver 16:1 Litigation:
Litigation is both a growth killer, and a deal killer. Best practice is "There are no claims for or against your company, or its employees, resulting in formal proceedings." If your client is not in line with this best practice, the system can trigger a Red Flag, notifying the client and advisor that the issue must be resolved.
The top Red Flags differ in Discover and the Deep-Dive Analysis. This is because there is more accountability - in the form of documented compliance with best practices - in the Deep-Dive Analysis.
The Executable Growth Plan contains suggested tasks for neutralizing Red Flags.
Here are the top Red Flag threats to growth and equity value:
From the Discover initial analysis
From the Deep-Dive Analysis
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