Strategic Valuation

Predicting the outcomes of investments and business decisions with full certainty is impossible. However, this does not mean you must rely on centuries-old methods that presume perfect knowledge, take into account only one scenario, or rely upon an arbitrary formula or discount rate. The Rapid Recursive method was originally developed to model investment and other decisions that involve asymmetric risks, multiple scenarios, and multi-dimensional business conditions.

Why We Are Different

The problem with common processes for developing financial strategies is that they often consider only one scenario. These solutions ignore the information you have about other likely outcomes and fail to properly consider asymmetric risks and the real options available. This information loss results in inaccurate valuations, incorrect investment decisions, and sub-optimal strategies leading to losses and unrealized returns.

Our recursive modeling services utilize our Rapid Recursive method, which builds on principles of control theory and dynamic programming. These methods are perfect for taking into account more information, such as real options and asymmetric risks, and evaluating multiple possible scenarios

Applications

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Investments when real options or asymmetric risks are present, particularly high-risk start-up companies.
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Franchise/Franchisee valuation and investments, including hotels and restaurants, among others.
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Large, diverse portfolios with mixed asset types.
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Intangible asset and intellectual property valuation, valuation for estate and gift tax purposes, ESOP (Employee Stock Ownership Plan) valuations.*
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Multiple asset types such as stocks, bonds, options and derivatives, commodities, commercial and mixed-use real estate.
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“American” and exotic financial option valuations, .as well as valuation of “real” options.

Our Method

The process begins with exploratory data analysis, which supports the development of a predictive model based on changing future conditions. Informed by the predictive model, we then provide valuations of different possible scenarios, which becomes integral to developing robust investment and financial scenarios.

1555 Watertower Place #100,
East Lansing, MI 48823

 (517) 333-7024

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