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Case Study: Strategic Vision: Value Creation for Perform Business
The purpose of this aspect of Ephor Group’s Perform Business Process™ is to create value realization options; either by A. Manufacturing an exit, B. Developing growth plan, or C. Expanding services using a portfolio approach.
Ephor Group recently worked with a services client to achieve a favorable strategic exit in a business that had not performed to expectation for a number of years. The equity value of the business was negative and the company required additional capital to continue its operations. Management and the owners of the company had struggled with a series of obstacles that resulted in a working style that was reactive and event-oriented.
Starting with the motto, “Hope is not a strategy,” Ephor implemented the operational and tactical actions necessary to move the company towards its exit. Our approach was based on the philosophy that equity value would come from demonstrated competency in any combination of the following areas:
- Revenue growth at attractive margins
- Strong back-office efficiencies that can absorb additional volumes at little incremental cost
- Process and measurement driven operations that can inject perform-based culture into acquired companies
- Technology platform that has fully developed top quartile functionality and scalability
- Recognizable brand image and sub-brand effectiveness
- Reputation for high quality operating ability and well trained employees
- High worker utilization and retention in tight labor market
By working towards these objectives the company saw an improvement in operating performance that could be translated into overall enterprise value. This improvement resulted in a success fund raised by Ephor Group that provided bridge capital to an orderly exit.
Ephor developed a qualified list of acquirers and began working those prospects towards a transaction. Within 200 days of beginning the sales process the company was sold to a strategic acquirer.
Whether your investment is underperforming or just looking to maximize your return, Ephor Group has a proven track record of achieving bottom-line results.
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