4175 Gryphon Valuation Consultants

  • Southern Nevada's First and Only
    Valuation Consulting Firm
    based in Las Vegas and
    providing Local Expertise.

  • "Our mission is one of defining, discovering and
    defending value for the needs, goals and
    objectives of our clients-in an atmosphere where
    confidentiality is paramount."

    -Donald R. Parker, CFA, AVA
    Founder

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    "Everything that can be counted does not necessarily count; everything that counts is not necessarily counted."

    -Albert Einstein


  • "Price is what you pay.
    Value is what you get."

    -Warren Buffet


  • "Too many people today know the price of everything and the value of nothing."

    -Ann Landers

  • Defining Value

    A primary objective of business owners is to maximize the value of their interests. In that endeavor, it is of primary importance to identify those aspects of the business that define value. A properly prepared business valuation can provide insightful information that can define the strengths and weaknesses (we prefer to call them opportunities) of the business enterprise.

    Many business owners believe that the value of their business is based on some rule of thumb (multiple of earnings, revenues, etc.). Unfortunately, rule of thumb formulas often (if not always) result in valuations that lead to undesirable consequences— miscalculated estate tax estimations, lack of optimal succession/exit strategies, less than favorable litigation outcome, etc.

  • Discovering Value

    The true value of a business is usually not found in the raw numbers. It is incumbent upon the analyst to “dig” below and beyond the surface of the financial statements. Often times, value discovery is very much like digging for lost treasure. Adjustments must be made to the financials to account for items that detract from value such as: excess compensation, aggressive depreciation schedules, non-recurring charges, and amortized goodwill (which is no longer allowed).

  • Defending Value

    Nothing can substantiate the value of an on-going enterprise more than a well prepared, well documented valuation report in narrative format. An effective valuation report should read like a well-produced documentary, leading each reader to the same conclusion arrived at by the valuation analyst. A valuation report should embody all of the financial, economic, and legal aspects that are incidental to the operation of the business.

    Each report produced by Gryphon Valuation Consultants necessarily assumes that the conclusion will, sooner or later, be challenged. Therefore, each comprehensive report is intended to be self-supportive on its own merits. However, should any valuation conclusion need to be supported due to litigation, mediation or other circumstances, Gryphon stands ready to deploy whatever resources are necessary to support our conclusions and, if necessary, testify to the findings and conclusions within the report.*

    *Gryphon Valuation Consultants, Inc. provides litigation support services under a separate engagement from that of the valuation engagement.

  • Breaking Down Value

    There are two primary components of any business enterprise that make up value: tangibles and intangibles. Tangible assets are those things that you can touch, taste and feel. These are the “hard assets” of the business and are usually easily identified. The determination of their value is relatively straightforward.

    Intangible assets are more difficult to value and in most cases, represent more value to the business than the tangible assets. Intangible assets can include customer lists, patents, trademarks and copyrights, strength of management, non-compete covenants, special processes, physical location, brand recognition, and other aspects of the business material to producing revenue.

    The valuation of intangible assets is more art than a science. The valuation analyst must understand the business’s strengths and areas of vulnerability, the competitive landscape, marketplace expectations, and industry and economic prospects along with other factors having a material impact on future earnings potential. All of these elements affect the risk of ownership interest, which in turn affects value.

  • Taxes and Profitability

    Unfortunately, most business owners have let the tax-tail wag the dog. The focus has been on reducing profitability. This might be a good strategy if one never intends to sell. From an exit strategy perspective, though, the focus should be on profitability. And this focus should prevail for not just the year or two before a proposed exit, but for several years leading up to the sale or transition of the business. Profitability sells. And nothing sells more than a historical track record of profitability.

    There are several techniques that can be employed to increase profitability. The following represent just a few: increasing dividends (especially in light of the latest tax legislation), adjusting compensation to realistic levels, minimizing inventory levels, establishing alternative methods of compensation (stock incentives, profit sharing, ESOP, etc.), reorganization of management structure, entering into long-term relationships with suppliers and using hedging techniques to control costs over the long-term. A qualified valuation analyst will be able to not only identify value-enhancement strategies, but also advise the business owner on how to implement such strategies.

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