client specific Value Map

The value of a business varies:

  1. Directly with its free cash flow (FCF)

  2. Directly with the expected growth in FCF

  3. Inversely with its risk.

Of the three sources of value enhancement—FCF, growth in FCF, and reducing risk—risk reduction is the easiest and most cost-effective choice.

We advise owners about reducing risk in five high-risk areas: Strategy, People, Architecture, Routines, and Culture. We gleaned these from the reports and memoranda we have prepared in hundreds of valuation, M&A, and advisory engagements. The result is the SPARC Framework.