An Example of Technical Engagement

What an increase in business value might look like when it emphasizes BOTH human and financial capital. 

In this example, the owner of a precision metal fabricator with 28 years in business and 20%+ profit margins but with client concentration and somewhat unsophisticated staff and advisers.  The owner wanted assistance to help him increase his business value from $15 million to $25 million (or more) by leveraging his staff, his advisers and our advisory relationship(s). 

What is this extra $10 million worth?

In this example the investment is $50,00 up front and 2% on the back end.  Client gets a 40X to 100X return on investment.  The fee arrangement depends upon the option(s) selected.

A holistic approach

STEP ONE:       Benchmark current value of assets held 

STEP TWO:      Prioritize the performance and risk elements that can be inexpensively modified vs those more cumbersome and costly

STEP THREE:   Identify how each “constituent” is engaged and leveraged – introduction of needed advisory skills (ibanking/PE, etc.)  

STEP FOUR:     Strategy session involving key staff and advisors to achieve alignment and articulation of vision (liquidity vs legacy) 

STEP FIVE:       Concurrence on roles/responsibilities and milestones 

STEP SIX:         Ongoing progress & process reporting and facilitation agreed in Step 5

We offer the flexibility of lower upfront fees in return for a participation fee (milestones met such as value enhanced – expressed as a % – skin in game)

STEPS ONE and TWO: Establish where start from and direction headed

STEPS THREE, FOUR and FIVE:  Leverage of human capital

STEP SIX:  Monitor, measure, manage and mitigate risk