Business Valuation Analysis project

Having examined the business plan by considering the reasonableness and the feasibility-to-execute, TheMagnet® provided its suggestions going forward.

Challenge

The Client, a Systems Integration subsidiary of a leading ICT Group in Cyprus with a global span and impact, wanted to expand its services portfolio by adding custom Software Development and Software-As-A-Service (SaaS) in its core services to offer complete IT solutions to its clients both in Cyprus and globally, and of course to increase the Group’s net-value through potential acquisition (non-organic growth).

The Client is examining the potential acquisition of a specific software development company. It hopes to provide complete portfolio of services so as to be optimized for new customers, while adding value to existing customers both in Cyprus and abroad.

TheMagnet® was requested to assist the management of the Client in carrying out business valuation analysis for internal strategic decision-making purposes.

TheMagnet® Approach

The business valuation analysis included the following:


a. Examination of the business plan of the software development company
b. To carry out feasibility analysis on the business plan
c. To examine and validate the existing methodology used for the valuation of the software development company
d. To carry out sensitivity analysis on the valuation
e. To consider other valuation methodologies
f. To provide suggestions going forward

Outcome

Having examined the business plan by considering the reasonableness and the feasibility-to-execute, TheMagnet® provided its suggestions going forward. A revised estimate of the business plan was suggested. Following the examination and revision of the business plan, TheMagnet® reviewed the valuation methodology and considered two approaches:

Approach 1: Discount Cash Flow (DCF), and,
Approach 2: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) multiple.

Any risks can be mitigated by the way the deal is structured. The potential deal structure must address the risks of the Client, and the wants of the software development company.

Provision of Services for Risk Assessment, Business Continuity Plan and Disaster Recovery Plan

TheMagnet® successfully drafted a complete set of documentation on Risk Register, Risk Assessment, Business Continuity Plan, Business Impact Analysis, and Criticality Requirements Assessment for Public Warning System through mobile phones.

TheMagnet® Consulting Advisors team: Periklis G. TheodoridisPanikos KalosDr. Evagoras D. ConstantinidesMario Panayiotou 

The Client

The Client, Cyprus Civil Defence, is a Department of the Ministry of Interior whose main mission is the protection of the population. It is responsible for taking measures in response to natural or man-made disasters, potentially threatening human life and welfare, or even extensively damaging the island’s environment and natural resources. It is also responsible for protecting the civilian population during periods of armed conflict. The measures taken by the Cyprus Civil Defence include a series of actions regarding disaster prevention, preparation, response, strategic planning, education, mitigation, and rehabilitation at the aftermath of disasters.

Challenge

Cyprus Civil Defense had requested for a Risk Assessment exercise as per Digital Security Authority (DSA) Decision 389/2020 for a Public Warning System.

The main purpose of the Risk Assessment, which includes the Contractor Risk Assessment and the Interdependencies Risk Assessment, is to provide a structured framework to identify and treat the risks involved with planning, design implementation and monitoring of a Public Warning System for the Republic of Cyprus which also takes into consideration Law 389 regulated by the Digital Security Authority.

TheMagnet® Approach

1. Worked on 3 risk assessments:

  1. The Client Risk Assessment
  2. The Contractor Risk Assessment
  3. The Interdependencies Risk Assessment which develops the business continuity management system required

2. Categorized the Risks into the following areas:

  1. Geographical coverage risks
  2. Cyber Security Risks
  3. Network Continuity Risks
  4. Physical Risks
  5. Natural disaster risks (earthquakes, extreme weather, pandemic, fire, floods)
  6. Malicious attacks risks (war, civil war, riots, terrorist attacks)
  7. Detection Risks (ability to detect an adverse incident at time of incident)
  8. Communication Strategy Risks (the strategy in which person A detects and communicates incident to person B who then initiates the Public Warning System using correct and agreed protocols and authorization levels)
  9. Financial Risks (cost of developing the Public Warning System as well as the cost of replacing resources lost during a major incident.)
  10. Regulatory Risks (inability to comply)

3. Developed a Business Continuity Plan as well as a Disaster Recovery Plan.

The Business Continuity Plan, along with the Disaster Recovery Plan, describe the procedures to be carried out in the event of a major incident affecting the service of the Public Warning System. The Business Continuity Plan details the overall approach to Business Continuity and provides a framework to document and structure the response to a continuity incident by addressing the requirements for services, processes, and network systems.

Outcome

TheMagnet® successfully drafted a complete set of documentation on Risk Register, Risk Assessment, Business Continuity Plan, Business Impact Analysis, and Criticality Requirements Assessment for Public Warning System through mobile phones.

Condolences Announcement

We are deeply saddened by the loss of our colleague Phanos Pitiris at 57 years young.

Phanos stood out for his hard work, professionalism, and ethos.

Our thoughts, prayers, and support, at these difficult times, goes to his family who are facing with such a great untimely and unjust loss.

May your memory be eternal.

TheMagnet® Team

About Phanos Pitiris

In the 90s, Phanos was the co-founder and CEO of a US based company which jointly developed and marketed portable and industrial Non Destructive Evaluation solutions based on eddy current technologies to NASA, the U.S. Navy and Ford Motors. The company was also an early pioneer in the development of PC/TV technologies which incorporated the internet and media for use at home and business on large size monitors,  featured in a number of US publications such as PC Magazine. In the 90s, Phanos was also a co-founder and Senior Partner of a US based internet development company with focus on advanced web designs and applications having done work for DARPA (Defense Advanced Research Projects Agency).


In the 00s and after returning to Cyprus, Phanos closely worked with Israeli venture capitalists serving on the investment committee of a $64 million VC fund with focus on high tech startups. He also played an integral role in the development and management of a VC driven business incubator/accelerator with focus on ICT startups which within less than two years from the company’s inception was offered a €1.2 million pre-money valuation by a strategic investor. During that period, he also worked on a number of European Commission funded projects relating to innovation and entrepreneurship, visiting and/or collaborating with some of the leading incubators and technology parks in Europe and elsewhere.


In the 10s, Phanos has been spending time with a number of startup and entrepreneurial initiatives in Cyprus under different capacities such as mentor, coach and advisor.


He also served as Business Development Manager for Global Markets and International Banking at Hellenic Bank, Vice-President of the American Chamber of Commerce in Cyprus and District Governor of the American Hellenic Educational Progressive Association (AHEPA), Member of the Advisory Board of the Business School at the European University Cyprus, a Paul Harris Fellow of Rotary International and a member of CYBAN.

Until recently, he served TheMagnet®, a management and technology consulting firm, as a Senior Advisor with specialization in Innovation, Entrepreneurship, Startups, Venture Capital, and EU projects.

Provision of Expert Services in Telecommunications and Information Systems for an Electronic Communications Public Warning System

TheMagnet® successfully drafted a complete set of tender documents for a Public Warning System through mobile phones.

TheMagnet® Consulting Advisors team: Periklis G. TheodoridisPanikos KalosDr. Evagoras D. ConstantinidesYiannos Savoullis

The Client

The Client, Cyprus Civil Defence, is a Department of the Ministry of Interior whose main mission is the protection of the population. It is responsible for taking measures in response to natural or man-made disasters, potentially threatening human life and welfare, or even extensively damaging the island’s environment and natural resources. It is also responsible for protecting the civilian population during periods of armed conflict. The measures taken by the Cyprus Civil Defence include a series of actions regarding disaster prevention, preparation, response, strategic planning, education, mitigation, and rehabilitation in the aftermath of disasters.

Challenge

In 2018, Article 110 of the EECC made it mandatory for all the Member States of the European Union (EU) and European Economic Area (EEA) countries to deploy a Public Warning System using mobile networks to alert everyone located in a specific area of an ongoing crisis or upcoming disaster.

During the assessment of the available PWS technologies and architectures (Cell Broadcast, Location-Based SMS, or hybrid), TheMagnet® team obtained detailed information and data from several Public Warning System vendors and Mobile Network Operators, as well as, the European Emergency Number Association, the European Telecommunications Standards Institute and the Body of European Regulators for Electronic Communications.

TheMagnet® Approach

TheMagnet® investigated and analyzed the various technologies and system architectures that are available for public warning and prepared a comparison between the different technologies in use today and cost estimates for several such options, for budgetary purposes.

An in-depth risk and cost assessment of the Public Warning System architectures was performed. Considering the assessments, requirements compliance, and performance comparison by ETSI and BEREC, TheMagnet® proposed the way forward.

As a result of the analysis, TheMagnet® proposed a prioritized list (from most preferable to least preferable) of the PWS implementation options available, including budget estimates.

Outcome

TheMagnet® successfully drafted a complete set of tender documents for a Public Warning System through mobile phones. The Completion Report included the recording of all deliverables that have been implemented, including the issue of the tender documents, as well as costing, and proposals for future needs of the Contracting Authority relating to the Object of the Contract that has been implemented.

Why TheMagnet®?

We aim for an ongoing business and operation relationship with our business clients. TheMagnet® is a platform of trusted advisors for all types of businesses that provides innovative, tailor-made business consultancy services and solutions across all industries by leveraging best practices, skills and know-how.

We believe that bold steps define the future and that the ambition to lead requires the courage to adapt.

Featured Services:
TheMagnet® Consulting
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Provision of Services for Risk Assessment, Business Continuity Plan and Disaster Recovery Plan for a  Public Warning System 

Project:Provision of Services for Risk Assessment, Business Continuity Plan, and Disaster Recovery Plan for a Public Warning System
Contracting Authority:Cyprus Civil Defense

TheMagnet®, a management and technology consulting firm (https://themagnet.com.cy), has successfully drafted a complete set of documentation on Risk Register, Risk Assessment, Business Continuity Plan, Business Impact Analysis, and Criticality Requirements Assessment for Public Warning System through mobile phones.

The main purpose of the Risk Assessment, which includes the Contractor Risk Assessment and the Interdependencies Risk Assessment, is to provide a structured framework to identify and treat the risks involved with planning, design implementation and monitoring of a Public Warning System for the Republic of Cyprus which also takes into consideration Law 389 regulated by the Digital Security Authority.

The Business Continuity Plan, along with the Disaster Recovery Plan, describe the procedures to be carried out in the event of a major incident affecting the service of the Public Warning System. The Business Continuity Plan details the overall approach to Business Continuity and provides a framework to document and structure the response to a continuity incident by addressing the requirements for services, processes, and network systems.

The Cyprus Civil Defence is a Department of the Ministry of Interior whose main mission is the protection of the population. It is responsible for taking measures in response to natural or man-made disasters, potentially threatening human life and welfare, or even extensively damaging the island’s environment and natural resources. It is also responsible for protecting the civilian population during periods of armed conflict. The measures taken by the Cyprus Civil Defence include a series of actions regarding disaster prevention, preparation, response, strategic planning, education, mitigation, and rehabilitation at the aftermath of disasters.

TheMagnet® Advisors team comprised Periklis G. TheodoridisPanikos KalosDr. Evagoras D. Constantinides, and Mario Panayiotou.

5G & Fiber Optics: The way that leads Cyprus to Ιndustry 4.0

Infocom.Cy Conference took place in Nicosia on 7th December 2021. 

Infocom.Cy Conference is one of the largest Conferences for Telecoms, ICT and Security industries in Cyprus. It is an annual meeting place for digital industry executives, as well as those who use specialised tools and services to implement Digital Transformation. Digital growth is now transforming all sectors of the economy.

TheMagnet® was one of the Supporters of the event.

and TheMagnet®’s CEO, Mr. Periklis Theodoridis took part to the Leaders Summit’s section “Seeking the ROI”.

Quick preview of the event:


The difficult task of the parallel course of supply and demand, or otherwise investment and ROI, is called to be tackled by the top executives of ICT and Digital Communication companies in Cyprus.

And this task is, by no means, easy.

The very position of Cyprus is a “wish and a curse” for the island. On the one hand it is a telecommunications hub connecting Europe and the Middle East, on the other hand its geography itself makes the cost of interconnection more expensive.

And although for mobile telecommunications the path is already on high speed orbits, in the fixed telecommunications the optical fibers are still a minority and the removal of copper is quite far.

What are the steps that providers should follow? Do telecommunications’ investments remain high on the agenda? Is the regulatory framework favourable to collaborative models? Is supply sufficient to drive demand? or is the demand low and does not justify a large volume of investments? Can the State, through digital projects and other interventions, fuel the acceleration of the networks and give the necessary impetus to the inflow of funds?

Without networks and infrastructure, we can not talk about digital transformation in Cyprus.

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