Investment Banking
We, as an institutional investor apply Categorical AI to investment banking, especially corporate valuation and due diligence. Categorical AI achieves multifaceted analysis through a sophisticated multi-layered analytical architecture. By comprehending the temporal correlations within dynamic datasets, we can identify value creation opportunities that traditional methodologies frequently overlooked.
Categorical AI achieves multifaceted corporate valuation analysis through a sophisticated multi-layered analytical architecture. By comprehending the temporal correlations within dynamic datasets, we can identify value creation opportunities that traditional methodologies frequently overlooked.
In corporate valuation, we have constructed advanced predictive models utilizing Categorical AI. These models integrate multiple valuation methodologies, including future cash flow projections, comparable company analysis, and net asset valuation. Furthermore, Categorical AI automatically identifies industry-specific value drivers, enabling more precise corporate valuations.
Our due diligence process employs a comprehensive analytical approach incorporating both textual and numerical data. Using cutting-edge natural language processing technologies, we extract critical information from corporate disclosures, news articles, and social media posts, quantifying risk factors and business opportunities. In analyzing business relationships and market trends, we visualize inter-corporate networks to illuminate potential risks and opportunities.
Features
01 Corporate Valuation
Categorical AI system integrates three fundamental approaches to achieve more precise corporate value calculations:
First, for valuation based on future cash flow projections, Categorical AI analyzes historical financial data, considering industry characteristics, macroeconomic environments, and company-specific growth factors to generate precise forecasts. Specifically, for revenue, it considers market growth rates, price trends, and market share projections for each product/service. For cost ratios, it incorporates raw material price fluctuation forecasts, foreign exchange impacts, and productivity improvement rates. For SG&A expenses, it decomposes fixed and variable costs, analyzing factors such as labor cost inflation rates and advertising efficiency in detail.
Second, for comparable company analysis, Categorical AI identifies truly comparable companies from all listed enterprises. Rather than using simple industry classifications, it selects optimal comparison targets by considering multifaceted elements including business model similarity, profitability, growth potential, and risk characteristics. Furthermore, it achieves more accurate relative value assessments by adjusting various multiples (P/E, P/B, EBITDA multiples, etc.) for differences in company size, growth rates, profitability, and financial soundness.
Third, for net asset value assessment, Categorical AI scrutinizes the substantial value of corporate assets. Particularly in real estate valuation, it considers location, building age, and market trends by usage type. For intellectual property, it quantitatively incorporates patent values, brand strength, and customer base robustness.
In addition to these fundamental valuation methods, Categorical AI system conducts the following advanced analyses:
・Industry Structure Analysis: Quantifies competitive advantages by evaluating industry competition, entry barriers, substitute threats, and power relationships with business partners.
・Synergy Effect Quantification: Predicts cost reduction effects and revenue synergies in M&A cases with high accuracy using a database of similar cases.
・Risk Factor Quantification: Calculates appropriate risk premiums by comprehensively evaluating multifaceted risk factors including business, financial, market, and management risks.
・ESG Factor Integration: Quantitatively analyzes the impact of non-financial information such as environmental impact, social responsibility, and governance structure on corporate value.
・Option Value Assessment: Quantifies the value of management flexibility in new business development and capital investment based on real options theory.
Furthermore, Categorical AI system incorporates the following cutting-edge data analyses into corporate valuations:
・Social Media Analysis: Tracks real-time changes in consumer reputation and brand value.
・Supply Chain Analysis: Evaluates relationship strength with business partners and supply-distribution network stability.
・Technology Trend Analysis: Predicts future technological innovation possibilities from patent databases and R&D trends.
・Human Capital Analysis: Evaluates human capital value based on employee expertise, productivity, and retention rates.
Thus, Categorical AI system significantly evolves traditional corporate valuation methods, achieving more comprehensive and accurate assessments. The evaluation results are regularly updated to instantly reflect market environment changes and new information.
We are committed to contributing to your decision-making certainty and corporate value maximization through this innovative Categorical AI system.
02 Due Diligence
Our business due diligence conducts sophisticated analyses using Categorical AI in the following areas:
Market Analysis:
We conduct detailed analyses of market size, growth rates, and market share transitions in the target company's business domains. Categorical AI integrates and analyzes vast datasets including government statistics, industry data, market research reports, and corporate disclosures to generate more accurate market forecasts. This includes considerations of potential new entrants, impacts of substitute products/services, and market structural changes due to technological innovations.
Competitive Analysis:
We multidimensionally evaluate product/service advantages, price competitiveness, brand strength, technological capabilities, and sales force effectiveness. Categorical AI quantifies actual market evaluations by analyzing big data including customer feedback, product reviews, and social media responses. Additionally, it objectively evaluates technological superiority through patent database analysis.
Business Plan Feasibility Assessment:
We meticulously verify consistency with past performance, validity of assumptions, and alignment with market forecasts. Categorical AI learns from similar companies' cases and historical successes/failures to present more realistic growth scenarios.
Operational Analysis includes detailed investigations of:
Production Systems:
We evaluate factory utilization rates, production efficiency, quality control systems, and equipment conditions. Categorical AI identifies productivity trends and improvement opportunities through time-series analysis of production data.
Procurement Systems:
We assess relationships with key suppliers, price negotiation power, procurement risks, and inventory management efficiency. Categorical AI analyzes transaction data to identify procurement cost optimization opportunities and potential risks.
Sales Systems:
We evaluate sales channel efficiency, customer base stability, and sales force strength. Categorical AI quantitatively assesses customer retention rates, customer lifetime value trends, and sales efficiency through customer data analysis.
Human Resources and Organizational Analysis:
We evaluate organizational structure efficiency, decision-making process appropriateness, human resource quality and quantity, and employee satisfaction. Categorical AI quantitatively grasps productivity trends, turnover rates, and organizational culture characteristics through analysis of organizational and HR data.
Systems and IT Infrastructure:
We assess system infrastructure readiness, information security measures, and digitalization progress. Categorical AI identifies potential risks and improvement opportunities through analysis of system logs and security data.
R&D Structure:
We analyze R&D investment efficiency, technology development progress, and intellectual property protection status. Categorical AI quantitatively evaluates technological advantages and future growth opportunities through analysis of patent databases and R&D data.
Financial Analysis includes:
Profitability Analysis:
We conduct detailed analysis of revenue structures by product/service, customer segment, and region. Categorical AI identifies profitability variation factors and improvement opportunities through transaction data analysis.
Cash Flow Analysis:
We evaluate working capital efficiency, capital investment requirements, and cash flow stability. Categorical AI predicts future funding requirements through historical cash flow data analysis.
Advanced Analytics:
・Big Data Analysis: Real-time tracking of market trends and customer behavior changes using social media, IoT, and location data.
・Scenario Analysis: Quantitative evaluation of risks and opportunities under multiple business environment scenarios.
・Integrated Reporting Analysis: Evaluation of sustainable value creation capability through integrated analysis of financial and non-financial information.
Categorical AI system significantly advances traditional due diligence methodologies, enabling more comprehensive and accurate investigations. Results are continuously monitored, allowing immediate reflection of new information and environmental changes.
Through this innovative Categorical AI system, we contribute to increasing the success rate of our clients' M&A strategies and enhancing investment decision certainty.
The exigent crisis of anthropogenic climate change demands a multi-disciplinary approach, combining the expertise of climatology, atmospheric physics, environmental science, and now, the realm of artificial general intelligence (AGI). AGI, defined as machine intelligence with the ability to understand, learn, and apply its knowledge across a broad array of tasks, surpassing human cognitive capacity in most economically valuable work, presents a novel vector for addressing the intricacies of climate change.
The 2020s heralds a new epoch in the annals of global economics, characterized by the pervasive influence of Artificial Intelligence (AI). As we traverse this decade, we are witnessing a paradigm shift in economic structures, driven by the rapid proliferation of AI technologies.
The world of finance is no stranger to disruption. From the advent of electronic trading to the rise of fintech, technology has continually reshaped how we value assets, assess risk, and make investment decisions. Today, we stand on the precipice of another seismic shift, driven by the burgeoning field of artificial intelligence (AI). No longer confined to the realm of science fiction, AI is rapidly transforming the complex and often subjective fields of corporate and intellectual property (IP) valuation.
Accreditation
We are a "Qualified Institutional Buyer" defined by U.S. Securities and Exchange Commission, and a "Qualified Institutional Investor" defined by Financial Services Agency.
New York General Group
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