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Mother 2003 Reviewer 

I used Mother in the conversion of an existing resort hotel to condominium-hotel included numerous entertainment components, such as restaurants, nightclubs, and two conference centers. The revenue generated from these operating entities represented a fairly significant portion of the net operating income.  

Using this program, I created financial models for each component, which eventually served as the basis for their business plans. 

On a separate assignment, I created a comprehensive tenant credit analysis for a multi-property industrial portfolio, where three tenants represented approximately 70 percent of the revenue generated for the portfolio.

 

Mother 2007 Reviewer

In my opinion, Mother Professional Business Analysis System contains many great features for a thorough analysis of a business. One of the best features I see is the Business Audit System that is made a part of the Summary Analysis.

This Business Audit System gets management (the owners) involved with and aware of what their business needs are and gets them to realize they need to consider each and every one of these items seriously if they truly want their business to succeed.

A successful business has looked at these factors and has made a concentrated effort to make sure they all are in place. 


Features:

2 Linked PowerPoint Presentation Templates
Cash Flow Analyzer ™ - ($50.00 Value Included Free) Excel 2003-2007
Venture Planner  For merger and acquisition analysts.
Venture Forecaster  For merger and acquisition analysts.
Full open architecture allows you to customize to suit your needs.
Includes both Microsoft Excel 2003 and Microsoft Excel 2007 Versions


Quick Summary:

Mother™
produces 2 analysis reports:

     1) A Standard, comprehensive, 130+ page analysis report from historical data over
         4 financial periods.

     2) A What-if, comprehensive, 130+ page analysis report by altering the Standard data
          to project  trends when various key numbers are increased or decreased.

Mother™ is an intermediate-to-advanced product and currently used by consultants and businesses of all sizes worldwide. The open and unprotected architecture allows Excel users to customize her to suit the needs of any business.

Mother™ is 4 very powerful integrated analysis systems running as one:

1. The Standard System:
The Standard System analyzes data entered on the Master Data Entry Worksheet and broadcasts these numbers over the analysis system and funnels one rating number back to this worksheet.

2. The What-if System:
The What-if System is directly linked to the Master Data Worksheet. It also broadcasts the what-if numbers across its own separate system and funnels one rating number back to this worksheet.

3. Trend Prediction:
Using regression analysis we predicted the trend based on the two scores. Since only two entries are used the predicted 3rd regression will appear exaggerated, however, it immediately indicates how proposed positive operating controls can improve the overall performance.

4. Business Audit Analysis System:
This tool will provide the small business entrepreneur with the essentials for conducting a comprehensive search for existing or potential problems. The audit was designed with small businesses in mind and addresses their unique problems and opportunities.

Minimum System Requirements:
Microsoft Office Excel 2007 system requirements
To use Microsoft Office Excel 2007, you will need:
     1) Computer and processor 500 megahertz (MHz) processor or higher
     2) Memory 256 megabyte (MB) RAM or higher (1 Gig is recommended)
     3) Hard disk 1.5 gigabyte (GB)
     4) Drive CD-ROM or DVD drive
     5) Display 1024x768 or higher resolution monitor
     6) Operating system Microsoft Windows XP with Service Pack (SP) 2,
         Windows Server 2003 with SP1, or later operating system

Apple Minimum System Requirements:
Microsoft  (Apple) Office Excel 2008, Word 2008, and PowerPoint 2008 system requirements
To use Apple Microsoft Office 2008, you will need:
     1) A Mac computer with an Intel 500 MHz or faster processor
     2) Operating system Mac OS X version 10.4.9 or later
     3) 512 MB of RAM or more
     4) 1.5 GB of available hard disk space
     5) DVD drive
     6) 1024 x 768 or higher resolution-monitor
NOTE: Since Microsoft chose to drop VBA (Macros) in Apple Excel 2008, a good alternative is to use Boot Camp found in Mac OS X or a 3rd party virtual desktop program. This allows you to have Windows XP or Vista on your Mac desk top.

Microsoft Office Excel 2003 system requirements
To use Microsoft Office Excel 2003, you need:
     1) Computer and processor Personal computer with an Intel
         Pentium 233-MHz or faster processor (Pentium III recommended)
     2) Memory 128 megabytes (MB) of RAM or greater
     3) Hard disk 150 MB of available hard-disk space; optional installation files
         cache (recommended) requires an additional 200 MB of available
         hard-disk space
     4) Drive CD-ROM or DVD drive
     5) Display Super VGA (800 × 600) or higher-resolution monitor
     6) Operating system Microsoft Windows 2000 with Service Pack 3 (SP3),
         Windows XP, or later



Mother's Index

This index is in workbook order.

Mother
Master Index
Summary Analysis
Rating Details
What-if Rating Details
Master Data Entry
What-if Master Data Entry
Forecast Analysis
What-if Forecast Analysis
Financial Summary
What-if Financial Summary
The Business Audit Background
Business Audit Introduction
Automatic Audit
Manual Audit
Audit Assessment Key
Mother 4 Periods
Mother Quick
Dashboard
Snapshot
What-if Snapshot
Cover Sheet
What-if Cover Sheet
Executive Summary
What-if Executive Summary
Comp. Income Statement
What-if Comp. Income Statement
Comp. Balance Sheet
What-if Comp. Balance Sheet
Logit Analysis
What-if Logit Analysis
H-Factor
What-if H-Factor
Springate
What-if Springate
Market Value Explained
Market Value Analysis
Optimal Performance
Payroll Analysis
Expense Analysis
Expense Budget
Proforma Balance
What-if Proforma Balance
Proforma Income
What-if Proforma Income
Sales vs. Expense
What-if Sales vs. Expense
Stock Valuation
What-if Stock Valuation
Breakdown of Costs
What-if Breakdown of Costs
BE Adjusted
What-if BE Adjusted
Break-Even Applied
Breakeven 4 Periods
What-if Breakeven 4 Periods
Breakeven Analysis
What-if Breakeven Analysis
Breakeven Analysis (2)
What-if Breakeven Analysis (2)
Breakeven Analysis (3)
What-if Breakeven Analysis (3)
Breakeven Analysis (4)
What-if Breakeven Analysis (4)
Z-Score (1) Chart
What-if Z-Score (1) Chart
Z-Score (2) Chart
What-if Z-Score (2) Chart
Z-Score (3) Chart
What-if Z-Score (3) Chart
Z-Score Analysis (1)
What-if Z-Score Analysis (1)
Z-Score Analysis (2)
What-if Z-Score Analysis (2)
Z-Score Analysis (3)
What-if Z-Score Analysis (3)
Z-Score Explained
What-if Z-Score Explained
Current Summary Chart
Sales Performance Chart
Total Expenses Chart
Materials Cost Chart
G&A Expenses Chart
Sales Projection Chart
Profit Chart
Ownership Chart
Labor Expenses Chart
Industry Analysis
Chart of Accounts
Productivity I-Survey
Productivity I
Productivity II
Productivity III
Productivity IV
Rating by Consultant
Consultant Rating Cover Sheet
Rating By Consultant Summary
Rating By Owner
Owner Rating Cover Sheet
Rating By Owner Summary
SIC Comparative RMA Analysis
Standard Industrial Codes
Ratios Introduction
Current Ratio
Quick Ratio
Earnings Per Share
Gross Profit Margin
Net Profit Margin
Return on Assets
Return on Equity
Average Collection Period
Inventory Turnover Ratio
Debt Ratio
Equity Ratio
Times Interest Earned Ratio
Expanded Ratios
What-if Expanded Ratios
Daily Profit Tracking
Weekly Profit Tracking
Credit Application
Accounts Receivable Aging
Accounts Payable Aging
Perpetual Inventory Control
Cash Flow Process
Cash Flow Cycle
Cash Flow 4 Years
What-if Cash Flow 4 Years
Cash Flow 8 Years
What-if Cash Flow 8 Years
Cash Flow Forecast Daily
Cash Flow Forecast Weekly
Cash Flow Forecast 12 Months
Cash Flow 4 Yrs Quarterly
Cash Flow Sensitivity Analysis
Cash Flow Sensitivity AR
Copyright
Support
License Agreement
 

Summary Analysis Worksheet

Mother 2003/2007 is 4 very powerful integrated analysis systems running as one:

1. The Standard System:
The Standard System analyzes data entered on the Master Data Entry Worksheet and broadcasts these numbers over the analysis system and funnels one rating number back to this worksheet.

2. The What-if System:
The What-if System is directly linked to the Master Data Worksheet. It also broadcasts the what-if numbers across  its own separate system and funnels one rating number back to this worksheet.

3. Business Audit Analysis System:
This tool will provide the small business entrepreneur with the essentials for conducting a comprehensive search for existing or potential problems. The audit was designed with small businesses in mind and addresses their unique problems and opportunities.

4. Trend Prediction:
Using regression analysis we predicted the trend based on the two scores. Since only two entries are used the  predicted 3rd regression will appear exaggerated, however, it immediately indicates how proposed positive  operating controls can improve the overall performance.

The Summary Analysis Worksheet is a snapshot of business performance and potential using these 4 systems.
 

Initial Set Up Steps

This Master Data Entry worksheet is where the rubber meets the road. It drives all of the analysis sheets with links in hundreds of locations.

Step 1
Enter all Vital Information (name, address, etc.), then it is important to clear this worksheet rather than overtype since some entries can be missed that appear entered.

Step 2  - Configuration Sidebar
- Click on the "Clear Sheet" button to clear the entire worksheet and set up for posting four periods, or
- Click on the "Two Periods" button to clear and set up regression analysis for periods three and four, or
- Click on the "Three Periods" button to clear and set up regression analysis for period four, or
- The "Troubled Firm" button returns the demo numbers to view a completed posting operation of a
business that is in troubled waters and headed toward bankruptcy, or
- The "Prosperous Firm" button returns the demo numbers to view a completed posting operation of a
business that is in excellent condition.

Step 3
Click on the respective Z-Score class: Public, Private, Non-manufacturing.

Step 4
Click on a business category: Manufacturing, Service, Retail, Wholesale, or Job Shop

Break-even status is viewed in each mini-line chart and by dollars for the period. General performance is viewed in each mini-bar chart.

 

Master Data Entry Worksheet




Sidebar Detail-See steps 2 through 4


What-if  Master Data Entry Worksheet

This worksheet is a powerful tool. You can experiment with increases and decreases to line items to improve the profit and B/E picture.

This is a mirror image of the Master Data Entry worksheet and linked so that the figures can be manipulated. The spinners are set at 100% to equal the entries on the Master Data Entry sheet.

You can increase and decrease line items by increments of 1% and instantly see the changes to Profit and Break-even.

This feature was developed to demonstrate the impact of cumulative expense reductions on net income combined with only marginal increases in revenue.

Be sure to save often so as not to lose multiple spinner values.

Spinners Reset Button : You may reset the spinner values to 100% at any time with the Reset buttons in the upper left hand corner of both the Income Statement and Balance Sheet.

This is the "Forecast Analysis" worksheet. This sheet can not be overemphasized in importance. Based on 4 periods of actual data, it forecasts the condition of a company out to 12 financial periods.

Combined with the other analysis sheets, it tells a loan officer, venture capitalist, Small Business Administration, etc. the success trend of your business.

Its single greatest attribute is magnifying the future trend of a business. Small variances become much larger and apparent in the 12th regression.

There are instances where 4 financial periods are not enough. This worksheet allows you to post additional periods up to 12.

Forecast Analysis Worksheet


Financial Summary Analysis Worksheet

This is the "Financial Summary Analysis" sheet. This sheet is similar to an Executive Summary.

It is the summary of figures entered, analyzed throughout Mother, and placed on one sheet.

A key function is the "Trend Assessment" column. This column automatically alerts you, by line item, as to problem areas.

The Dashboard is a picture summary of a business using several types of information.

A careful study of this page can direct you to problem areas.

This sheet is linked to MS PowerPoint™ and MS Word presentations. You must have them on your system for the command button to activate.
 

The Dashboard Summary Analysis


Financial Snapshot

This worksheet is a quick look at the financial health of the firm.

There are key ratios here that are driven from the "Master Data Entry" worksheet. The only item that is not linked is the Investment made to start and sustained the firm.

By habit, loan institutions look for one key ratio, the "Current Ratio". Unfortunately, this ratio will vary above and below the magic 2.0 depending on the industry.

The net profit ratios/percentages are also very important indicators (Upper Left Hand Corner).

In reality all of the numbers on this sheet are important and should be in sound health.

This is the cover sheet for your convenience or can be used as an inside cover.

 

Front Report Cover


The Executive Summary

The Executive Summary of a business yields an overall picture of its financial health.

We have extracted, compiled, and entered into our analysis system all of the vital information that pertains to this specific business and yielded this summary. The primary objective is to zero in on all of the areas that might be detracting from the bottom line.

Knowledge is power, and knowledge of a company's value is the ultimate power tool.

Item 9 is the summary results of your Market Value Analysis. The Market Value Analysis uses the 6 standard methods endorsed by The American Society of Appraisers.

 

This worksheet compares 4 periods of income and expense performance in both dollars and percentages.

Comparative Income Statement


Comparative Balance Sheet

This worksheet compares 4 periods of financial performance in both dollars and percentages.

Bankruptcy prediction models are more generally known as measures of financial distress. The best-known, and most-widely used, multiple discriminate analysis method is the one proposed by Edward Altman, Professor of Finance at the Stern School of Business, New York University, The Z-Score Analysis or Zeta Model.

Despite the positive results of his study, Altman’s model had a key weakness: it assumed variables in the sample data to be normally distributed. "If all variables are not normally distributed, the methods employed may result in selection of an inappropriate set of predictors".

Chistine Zavgren developed a model that corrected for this problem. Her model used logit analysis to predict bankruptcy. Due to its use of logit analysis, her model is considered "more robust". Further, logit analysis actually provides a probability (in terms of a percentage) of bankruptcy. Also, the probability calculated might be considered a measure of the effectiveness of management, i.e. effective management will not lead a company to the verge of bankruptcy.

 

Bankruptcy Prediction - logit analysis


Z-Score Analysis



Routinely used today by Stockbrokers trying to determine if a company is a good investment, Bankers todetermine loan risk, and internally, by anyone who wants to take close look at their own company's
financial health.

Data Needed:
• Earnings before taxes
• Total assets
• Net Sales
• Market Value of Equity
• Total Liabilities
• Working Capital
• Retained Earnings

The worksheet will indicate:
The short-term potential for financial problems at your company.

The Expert
Edward I. Altman, Professor and Vice-Director of New York University's Salomon Center,
Leonard N. Stern School of Business.

Dr. Altman is known as the founding father of using statistical techniques to predict company failure.
He developed the Z-Score analysis almost 30 years ago, and is the author of several books, including

The Z-Score Bankruptcy Model: Past, Present, and Future (New York: John Wiley & Sons, 1977),
and Corporate Financial Distress and Bankruptcy, 2nd edition (New York: John Wiley & Sons, 1993).
 

Every business has buried costs. Revealing them is the trick and the skill of productivity analysis comes into play.

This sheet determines what it cost per year for minutes in unproductive use of time.

There are 5 productivity sheets in Mother.

Buried Costs Analysis


Comparative Trend Analysis

There are 81 industry standards in this data base. They were updated in September 2006.

By scrolling and clicking in a category you can compare your business to your industry.

There are 2 Linked PowerPoint presentation templates.

 

PowerPoint Presentation






Several totals under Maximum Potential may appear inaccurate since maximum percentages were used in Sales and minimum percentages were used in Expenses.

The best percentages for 4 periods were used to demonstrate the Potential Maximum Performance over the total time span.

This sheet demonstrates the best operating scenario taken from all financial periods.

Use the What-if spinners to assess what changes will best improve the bottom line. Look at variable expenses first.

Spinners Reset Button: You may reset the spinner values to 100% at any time with the Reset button in the upper right hand corner.

Optimal Operating Analysis


Venture Planner & Venture Forecaster
 
Harvard Model Split Screenshot

Summary Analysis Split Screenshot

Horizontal Analysis Split Screenshot
 
 

Vertical Analysis Split Screenshot
 
 

Proforma Linear Trend Analysis

Proforma Smoothing Analysis

Final Budget Analysis

 

 



 

 

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