BVX Knowledge Base
BVX Knowledge Base
M&A University

BVX® Output Limitations

BVX converts the requirements of various parties to a transaction into a mathematical model that consists of a series of simultaneous equations and constraints.  Due to the financial nature of these equations and constraints they have highly non-linear characteristics.  BVX uses a non-linear optimization technique, commonly used in the field of Operations Research, for solving highly complex mathematical models.  These non-linear techniques are known to deliver a false optimal solution, but BVX has significantly reduced the probability of false optimal solution through proprietary techniques.  However, there cannot be any guarantees of the highest value in a non-linear model.  There can always be a combination of input parameters that may cause a false optimum solution or multiple optimal solutions.  The user should run Deal Optimizer™ multiple number of time times to verify that the BVX Best Value is the same each time. 

 

If you do find a combination of input parameters that gives multiple BVX Best Values, send an email to info@BusinessValueXpress.com with all the input parameters (email the output excel spreadsheets).