Most valuations happen because they must, not because owners want them. Compliance wastes your money. It's boilerplate. It states the obvious. It anesthetizes readers. Our strategy-based approach is different: We aim to make you more than we cost you.
That's because we believe that those who say they can estimate value should be about creating some. We know that the value-added in your business doesn't come from the Accounting Dept. It comes from the shop floor, the warehouse, and your sales people in the field.
To be sure, our in-depth financial knowledge is indispensable as we translate accounting numbers into economic performance. In his introduction to EVA: The Real Key to Creating Wealth (New York: John Wiley & Sons, 1998, p. xii), Joel Stern says it best:
The accounting framework is a disaster. [There are at least] 120 potential distortions in generally accepted accounting principles, or GAAP. To be pleasant, we call them accounting anomalies. Left alone, GAAP distorts economic reality and leads to resource misallocation...
... and to bad business decisions. There's a gap between GAAP and the real world. There's more to valuation than number-crunching and accounting esoterica. We prove it by adding value.
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