Valuation
+ Strategy → Value Enhancement
Our unique perspective blends strategy concepts with more-traditional valuation tools. The result: greater value for clients.
We originated the Tri-Level Framework of Unsystematic Risk. It is a disciplined way to analyze risk that is unique to smaller companies. That matters because data going back to 1926 prove that, on balance, smaller firms are riskier than larger ones. That is common sense, of course, but it doesn't tell us why. To get to why, we must understand unsystematic risk. To paraphrase the late Vince Lombardi, "Unsystematic risk isn't everything. It's the only thing."
The Framework includes macroenvironment, industry, and company. Of course, the individual firm makes or breaks its destiny at the company level. Over time, what it does must evolve and improve because the essences of capitalism are evolution and competition.
That is where the Framework’s linchpin, SPARC (Strategy, People, Architecture, Routines, Culture), comes in. SPARC subsumes the five key elements that help define a company and explain why it is what it is. In our schematic, those five are circumscribed by eleven functional areas.
"Clients will pay for value," says Dorothy. "But they hate paying for compliance. So do we. That's why we focus on value creation. Valuation professionals must go from being disengaged analysts to being active teachers who create actionable information and bankable knowledge. It's all about why."
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