ECOFORUM [Volume 6, Issue 1(10), 2017] Meri BOSHKOSKA University St.Kliment Ohridski – Bitola, Republic of Macedonia meribb@yahoo.com Milcho PRISAGJANEC University St.Kliment Ohridski – Bitola, Republic of Macedonia milco.prisaganec@gmail.com Abstract The possibility to predict bankruptcy of a company before it actually occurs has resulted in a development of a great number of research works on business failure. In theory, there are several models that could predict the financial instability of the companies. A few of these models have been expanded and applied in the developed countries the market environment of which differs from those in the developing and transition countries. When evaluating and predicting the excellence of a company it is important to consider the economic environment in which the company has been dealing. This is we have decided to use the BEX model as it has been designed for the Croatian business environment which is similar to the Macedonian one. The objective of this paper has been reached by developing a software analysis based on BEX model which enables calculation, determination and visual presentation of a company’s excellence, as well as a business success and failure prediction. Key words: BEX model, financial distress, company bankruptcy, software interface. JEL Classification: G33, C63 I. I NTRODUCTION The term “financial distress” describes a temporary lack of liquidity of a company and the difficulties which arise when fulfilling the financial commitments, on time. (Outecheva, N, 2007, p.13). Outecheva also highlights that the financial distress is very often determined in terms of bankruptcy, failure and default. Financial distresses of the companies have serious harmful economic effects on the whole society and therefore they should be seriously treated (Silvanaviciute, S 2008). A financial stable company is powerful enough to be able to sustain a temporary problem like a capital insufficiency, a sale reduction or a loss of a key customer. (Edmunds – Asche, S and Media, D, n.d.). Novak B. (2003) points out that there have been a lot of researchers who, by applying financial indicators, make predictions on the difficulties of a company in the future. Financial models for evaluation of the financial stability of the companies have been using various combinations of financial indicators like: total assets profitability (89 models), liquidity currents ration (51 models) and liquidity quick ratio (30 models), (Jezovita, 2015). The prediction models have proved to be very helpful for managers, analysts, investors and creditors and can serve as “earl y warning systems for the country as a whole”. (Kozjak, Sestanj, Peric, Besvir, B, 2014). A greater number of the models for financial statement of the firms have been incorporated and implemented in the developed countries in which the functioning market mechanisms differ from those in the transition countries. The purpose of this paper is to develop a software for calculation and visual presentation of the business excellence and business success and failure prediction of the Macedonian companies. The software has been designed to use Business Excellence Model (BEX). BEX is a model made by Belak and Barac and it is used for business excellence evaluation of the Croatian companies with the support of financial indicators which are available for the external users (Alihodzic and Dzafic, 2012). The BEX model has been developed for the Croatian capital market but its application is also possible for the business evaluation of the companies that operate in a similar business environment. The research methodology consists of a theoretical analysis of numerous research papers that deal with the issue of company’s bankruptcy prediction model with the issue of company’s bankruptcy prediction models. Computer software is used to calculate the company’s ongoing financial stability the objective of which is to predict the risk of potential bankruptcy of the company. The paper will contribute to the financial analysis and financial prediction theory and practice. As far as we know, there is no similar software (developed by any authors) that can be used to predict business success or failure of the Macedonian companies, based on the BEX model. BUSINESS SUCCESS AND FAILURE PREDICTION SOFTWARE - BEX MODEL