SERVICES
Strategic Business Services®
Strategic Business Services® are a suite of consulting projects designed specifically for Middle-Market business owners and executives to enable them to make better decisions about their companies or industries. They are:
- Company Specific Valuations
- Capital Road Maps®
- Strategic Industry Analyses
Company Specific Valuations
We are consistently approached by owners of Middle-Market companies who want to know what their businesses are worth. Some are contemplating selling their companies and want to know how the market would value their enterprises. Others have different reasons for seeking to understand the value of their businesses. Typically, they have an opinion about the enterprise value (gross value) of their businesses and very often those opinions are not accurate. Moreover, the concept of enterprise value is also inaccurate because it does not forecast the impact of taxes and other variables that can significantly affect the gross value.
Experience has taught us that the enterprise valuation is somewhat meaningless unless it is measured against the variables of taxes, transaction structure, and methods of financing, among others, to get to a projected net valuation range. We believe that owners considering a sale should be equipped with this information, particularly if a decision to sell is contingent on prospective net value.
As a result of the continuous flow of valuation inquiries, we developed a valuation process that incorporates a variety of analytical methods to forecast a net valuation range. Our name for this process is Company Specific Valuation and we offer it as a service to owners of Middle-Market companies. As the name implies, it is a comprehensive analysis of all of the variables relevant to a specific business and its industry and the projected affect they will have on enterprise value. This provides a reasonably accurate forecast of the net value that the market will pay for a particular business.
If you would like a JKC Investment Banker to contact you, please visit our confidential Contact Page.
Capital Road Maps®
Designed for Companies:
- That have a need for capital but are unclear about their capital options
- That want to determine the capital structure that best suits their business plans
- That are in need of a capital plan
Measurable Benefits Provided:
- An independent assessment that is important to making capital planning decisions
- Recommendations supported by analysis and experience
In Middle-Market companies, capital management often gets buried beneath the mound of challenges that managers face in the day-to-day press of business. As this happens, a rational capital plan goes unaddressed until it becomes recognized as critical, usually in the face of a capital challenge of some kind. These include growth opportunities, customer demands, capital expenditure requirements, and a myriad of other causes. When a capital challenge appears, managers should know all available capital options and the ramifications of each.
A Capital Road Map® is an advisory project designed to objectively and independently research and recommend the types of available sources of capital and the ramifications of each. More than a generic list of capital providers, a Capital Road Map® is tailored to prioritize sources of capital based on the advantages they would offer in each company’s unique situation. Additionally, the Capital Road Map® includes an in-depth analysis of the impact on the current shareholders of accepting any of the various forms of capital that are available. Armed with that important knowledge, managers and entrepreneurs can make an informed decision about which capital road to take and what will be encountered along that road.
Capital Road Maps® are also useful for companies that know they require a change in capital structure or a liquidity event in the future, and need direction that details the path to follow so that the Balance Sheet and corporate structure are not an impairment when the time comes.
If you would like a JKC Investment Banker to contact you, please visit our confidential Contact Page.
Strategic Industry Analyses
Certain aspects of a Middle-Market company’s environment, such as internal policies and procedures, are under the control of business owners and the management team. However, variables in the external environment, which are not under the control of a company, also affect business performance. The industry and end-markets in which a company operates are two such factors.
Understanding the forces at work in an overall industry is an important component of effective strategic planning. A Strategic Industry Analysis provides qualitative and quantitative analytical assistance to business owners to aid them in their mid-term and long-term decision-making processes.
Our service is tailored to meet the specific requirements of a company and might include focusing on a detailed review of an industry and its end-markets trends and future outlook, or analyzing transactions that are taking place in an industry, along with any other areas of interest. Supported by this industry knowledge, business owners can make insightful strategic decisions and be proactive in dealing with their external environment.
If you would like a JKC Investment Banker to contact you, please visit our confidential Contact Page.
