Appeal 2007-2745
Application 09/761,671
1 13. Bielinski provides an example of a mix for VRM analysis including
2 materials, human resources, technology and capital, and other costs of
3 goods sold as value drivers (Bielinski, 2:Bottom five full ¶’s).
4 14. VBM essentially utilizes SVA principles but advances the basic
5 techniques by incorporating historical data, operations-linked value
6 drivers, and concurrent changes in multiple value-drivers (Bielinski,
7 3:Third full ¶).
8 15. Bielinski shows the sensitivity of the baseline cash flow to changes in
9 key factors. Showing how results might have turned out differently if
10 operating or strategic changes been effected in the recent past suggests
11 improvements that can be made in the future (Bielinski, 3:Sixth full ¶).
12 16. Sensitivity analysis can show how changes in key cost and operating
13 components can impact cash flow. One striking conclusion is that the
14 areas where the big dollars are do not always offer the greatest
15 opportunities to improve cash flow and value (Bielinski, 3:Seventh and
16 eighth full ¶).
17 17. Bielinski describes how SVA can tie strategic changes directly to
18 manufacturing by future initiatives to control costs, eliminating
19 overspecification and establishing better value chain management
20 (Bielinski, 3:Bottom ¶).
21 18. And if both the acquirer and target utilize VBM in constructing a
22 projection, the two sides might come close to reaching a consensus on
23 what constitutes a "realistic" projection of future performance (Bielinski,
24 4:Bottom ¶).
8
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: September 9, 2013