Ephor Group's Useful Capital Approach

We believe that there is a higher probability of wealth creation when outside help is utilized. For business owners, aligning with "Useful Capital" partners is key to a harmonious and wealth producing partnership. Ephor Group provides our client companies with "Useful Capital" and is a true operating partner that has a track-record of success in outsourcing and technology enabled business services.   

Reasons for Useful Capital:

1. To create liquidity for founders;
2. To create scale in the business; and
3. To mitigate execution and financial risk .

Useful Capital is available to companies with the following characteristics:

1. A company with a market opportunity greater than $50M in the next five years
2. Ability aggregate a portfolio of businesses (growth through tuck in acquisitions to cross-sell to existing customers and/or where we can add proprietary IP)
3. Platforms attributes and value-proposition
4. Three to seven year exit time frames with zero platform loss tolerance

 People dependent businesses flourish when ‘Useful Capital’, bundled resources, and employees are all integrated in a unique business model and opportunity. Sometimes institutional investors are too focused on management and the leadership team and not enough focus on business models and strategic effectiveness resulting in difficult investments. Typically, a good institutional investor that represents ‘Useful Money’ can be an effective board member for emerging, mid-market organizations that need additional guidance and operating knowledge.

What is clear is that emerging and nascent firms need capital. Emerging firms are strategically biased by the leader/founder and thus need outside perspectives in evaluating and executing the long-term prospects for the business.

 “Useful Capital” providers illustrate the following capabilities:

1. Advisors that provide more than board seat occupancy and financial controls; they provide domain guidance and operating expertise
2. Previous investment expereince in the specific business sector; i.e. they know the players, customers, partners, and key performance indicators intuitively
3. Understand what is needed to create wealth in the specific sector, not theoretical or unproven ideas
4. Created a “Franchise Effect” and Effectively Positioned a Brand as #1
5. Built distribution and sales forces that are more cost-efficient than the competition
6. Created scalable operating processes with measurements that exceed industry benchmarks: i.e. greater than $200k of revenue and 30% field level EBITDA per employee
7. Implemented product portfolio strategies and tiered service levels
8. Created Channel and Strategic Alliances that generate at least a third of new sales
9. Utilized outsourcing techniques to create and implement “best of breed” processes.

 Getting ‘Useful Capital’ and external perspectives are fundamental to shareholder wealth!

 

Ephor Group News & Updates

July 2010 – Happy 4th of July from Ephor Group!

As you prepare for the second half of 2010, let us share with you a few of our recent publications which will lend some guidance and support in achieving your 2010 goals and objectives.   See the resources here.

June 2010 – Ephor' client Serenity Systems Acquires Certain Assets of Lighthouse Consultants.

Serenity Systems, a provider of IT Managed Services for organizations with enterprise systems, today announced the acquisition of certain assets of Lighthouse Consultants. Read the rest of the announcement here.  

June 2010 – The CFO’s Role and Agenda for Capitalizing on Useful Capital

Garry E. Meier, Ephor Group Chairman, presents  to myCFOnetwork CFO’s. Read more here.

May 2010 - Ephor' client HRAdvance Acquired by Hewitt.

Learn more at: Hewitt.com

April 2010 – Ephor releases FAO (Financial and Accounting) Outsourcing Brief

As the economy transitions, enterprises are transitioning from cost-cutting to cost-agility.  Increasingly, businesses are opting for “lighter-weight” service providers that combine a) software technology with b) outsourced services to create a FAO platform offering that delivers exceptional value.  Download the report here.

 

February 2010 – Ephor' client Serenity Systems Acquires Certain Assets of Kommar Solutions.

Learn more at: serenitysystems.com

February 2010 – American Small Business Vulnerability to Slow Economic Recovery

In the article Garry E. Meier outlines the five (5) areas that will be weighing down the economy in the near-term. Learn more on Ephor Group's eNewsletter.

February 2010 – Capital & Financing Options in 2010

Businesses that that have changed and are profitable (and are backed by a strong management team with lean operations and have both a unique business model and defined business plan) have multiple financing options available to them as the following report details. Download the report here.

January 2010 – Top Barriers to Wealth Creation

Over the past decade Ephor Group has worked with literally hundreds of small businesses to overcome barriers to wealth creation. This document identifies the most common barriers and provides guidance and processes to create a roadmap for near and long-term success. Download "Top Barriers to Wealth Creation."