Option Analyses

The life cycle of companies also includes strategic decisions with long-term implications. In addition to financial aspects, strategic, operational and legal factors need to be taken into account in order to initiate the successful realignment and ensure the best possible value preservation for investors.

Overview

Option analyses are used to highlight and explore possible room for action and to derive comparable and potential alternatives. This gives investors a reliable picture of relevant options. Furthermore, option analyses reduce the default risks of loan commitments and contribute to a comprehensive documentation of a loan decision.

Through our many years’ experience as well as financial and performance expertise, we first provide chapter lenders with a precise understanding regarding the status quo. The financial and operational effects of the options developed on this basis are then simulated with scenario analyses. The result is a reliable and comprehensible basis for decision-making.

Questions for the team

What is the essential function of option analyses?

In challenging situations, it is important for investors and companies to explore the room for action from different perspectives – for example with regard to possible transactions or (partial) closures. In such situations, FTI-Andersch helps to develop resilient solutions. With our option analyses, we ensure objectivity and transparency and thus bring the stakeholders to the table.

How do you ensure that all relevant aspects are included in the option analysis?

Based on our experience, we know what matters and what balance is required between exploring the scope for action and the speed of implementation. We bring the necessary industry knowledge to the table and, at the same time, a high level of financial and performance expertise – this allows us to examine the options from different perspectives. Our detailed scenario analyses are also very helpful – here, investors can see very concretely how decisions will affect them.

How should investors handle option analyses?

An option analysis has the great advantage of providing a more comprehensive and neutral view of the situation. It offers a differentiated and resilient basis for discussing the planned action steps with the company and other stakeholders. The way out of challenging situations is always best when everyone pulls together.

How we help our clients