Performance & Market

KPI – Performance/Competitiveness/Efficiency

Productivity and performance indicators (e.g. profitability, solvency, liquidity, business crisis alert indicators pursuant to Legislative Decree no. 83/2022) compared with those of direct competitors and potentially with all comparable companies on a local, regional, national and international for each sector (best practice).

The service is divided into several operational phases:

1. Analysis of the reference market. A careful analysis of the reference market is conducted on the basis of information of various kinds, internal and external to the tested party.

2. Address the search strategy: the initial set or “peer group” is defined, with respect to the reference company (i.e., tested party) starting from essential data extraction criteria (market, activity classification, independence, legal form, size, consolidated financial data ); the survey is based, in this phase, on the use of commercial databases (e.g. Aida, Orbis,…).

3. Quantitative analysis: the “peer group” is analysed with reference to a series of indices (liquidity, solidity, profitability..) to refine the comparability between the individuals identified and the tested party on the basis of economic and financial profiles;

4. Qualitative analysis: the comparability defects are eliminated and a final set of companies is defined by means of:

    • Review of descriptions related to the activity provided by the database;
    • In-depth informing based on viewing the company’s website;
    • Balance sheet analysis, explanatory note and management report;
    • Consideration of historical chamber of commerce registrations at the Chamber of Commerce;
    • Analysis of the summary diagram of direct and indirect shareholdings, of natural and legal persons.

5. Benchmarking analysis: the final peer-group is analyzed in terms of the KPIs of interest, for each company and for each year included in the period under analysis, in order to determine the eligibility range in compliance with the arm’s length principle (Chapter III A-7 Lines OECD guide).

6. Drafting of a detailed report: in order to ensure maximum transparency and reproducibility of the analysis, an adequate description of all the steps of the analysis is provided, highlighting the research strategy and the comparability criteria adopted. In addition to the detailed report in text format, a summary of the work is provided in presentation format.