Our research solutions focus on three principal domains: (1) customer and employee satisfaction surveys, (2) acquisition multiples, and (3) valuation for financial reporting. The realized value of satisfaction (a.k.a. loyalty) surveys should dwarf their costs. In one case, a survey we conducted enabled a venerable NY company to boost revenues by $3 million at a gross margin of 45%. In another, an Oklahoma niche manufacturer doubled its sales in 90 days as a result of a survey we designed and conducted.
On the buy-side of deals, we make it a point to know, but not to use, the rules of thumb in various industries. That's because industries change and evolve—that's the nature of capitalism—but rules of thumb never do. They routinely overvalue companies. We base our research on real deals and hard data.
In valuation for financial reporting, we might deploy time-series analysis to forecast streams of income or outgo or expected volatility in stock options subject to SFAS 123R. Autoregressive models are usually the tool of choice here. We use software from high-end provider SPSS Inc.
We also do research in two "soft" contexts. One is constructing competitive intelligence profiles for the buy-side of transactions. For acquisitive clients, this discreet service can save megabucks in deal negotiations and post-closing integration activities.
For existing clients only, we recruit CEOs, CFOs, VPOs, equity analysts, and outside Board members. We know our clients better than any headhunter ever could. We take on this task on a highly selective basis only. Unlike those full-time headhunters, we'll still be involved with the client after the recruiting is done. That makes us different, as does our unconditional written guarantee.
We believe that all research should follow "the 3 Rs": it should be rigorous, relevant, and realistic. It should also be delivered in simple, everyday English. One needn't be a quant, a military strategist, or an IO psychologist to understand our reports.
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