Strategic Planning and Business Plans
Semiconductor Fab Construction Management and Technical Services Company – Long-term client grew from $28 million / 148 employees / modest profitability to $60 million / 350 employees / strong profitability. Denary advised owners and board on value creation strategies, researched growth markets, developed diversification strategies and prepared the written business plans to reposition the company. Also advised on potential acquisitions.
Surveying Company – Researched and developed written business plan to further develop, document and articulate the company’s value-directedtm growth and diversification strategy. Company subsequently grew in four years from $20 million / 130 employees / mainly Texas government markets to $127 million / 450 employees / mainly industrial customers around the U.S. Value of firm grew from $15 million to $144 million leading to a successful recapitalization.
eCommerce / Internet Retailer – High growth, self-funded $70 million / 65 employees on-line seller of high-value tangible assets to high net worth individuals. Worked with the management to reposition the company to reflect opportunities in new lines of business and broader markets. Prepared the revised business plan to define and articulate the enhanced strategy. Advised on various go-forward funding approaches and began introducing the company to the private equity community for future funding options.
Hydrology / Geology / Environmental Professional Services Firm. – $22 million revenue / 140 employee (about half PhD’s) scientific services companies desired to increase growth, diversify and drive value creation. Conducted structured strategic sessions for 17 members of the management team leading to identification of a number of major “candidate initiatives”. Researched in detail several diversification markets and developed strategic options. Facilitated the decision making on the selection of key initiatives and the action plans to begin implementation. One initiative, for example, has the potential to increase the revenue of one line of business (LOB) from $5 million to $50 million in four to five years.
Nanotech Company – Small publicly traded R&D firm desired to grow through commercialization of its IP. Conducted structured strategic planning sessions with the management and technical staff to focus on the potential applications of one technology in the specialized micro-sized mass spectrometer space. Researched the markets for a number of potential applications and prepared written plans for each market. Prepared Confidential Information Memorandum that was used in a fund raising process that eventually led to the merger of our client with another firm in the industry.
Internet “Native Commerce” Company – Fast-growing, boot-strapped $30 million revenue private company that creates communities of specialized common interests, then provides e-publications, training programs, blogs/forums, consumer information and both digital and physical products aimed at those communities. Serves both business (SMBs) and consumers. Conducted business analyses and structured strategic planning processes to identify value-directed markets and positioning and to assist in the development of operational and financial processes and systems to support next phase of growth.
Internet Content and Services Provider – Developed the concept and detailed business plan for the creation of a ”for profit” company as a subsidiary of a Trade Association of Professionals. Business plan was used to win approval for the new business and to secure initial funding. Advised and helped manage the launch of the new company.
Video Surveillance / Video Management Systems Firm – Conducted systematic strategic planning process for the fast growing video hardware/software manufacturer. $5 million revenue; 40 employees. Advised CEO and key management team members on value creation plans.
Craft Brewery – Worked with the CEO / Owner to develop business plan for brewery expansion and relocation. Prepared Confidential Information Memorandum (CIM) used for subsequent debt financing efforts.
Assisted Living Healthcare Firm – $40 million / 900 employee company providing supported-living facilities for physically and mentally challenged individuals. Company had issues with profitability and cash flow. After careful analysis of their contribution margin we determined that there were significant issues in their service delivery – to – cash process. By mapping the As-Is process we discovered 51 issues/disconnects. After the design and implementation of the Should-Be process, profitability and cash flow improved markedly.
Environmental Services Firm – Revenues of $50 million and approximately 250 people. Company did not have a CFO in place at the time and was experiencing growing pains that resulted in working capital, particularly receivables, getting out of control. This resulted in a serious cash problem and strain on its bank covenants. We provided senior financial leadership and operational analysis on and interim basis. Reduced receivables to the maximum degree possible through disciplined collection process; managed payables gracefully until cash flow increased. Identified a series of cost and expense reduction methods that improved profitability and improved cash position.
Construction Company – $7 million revenue / 35 employee Company primarily acting as a sub-contractor on commercial projects wanted to focus on profitability growth. The previous two years they generated breakeven profits and a small loss. We help them develop a strategic vision and plan aimed at revenue growth. Then, to improve profitability, we facilitated a major improvement in their material flow process. As result, the company’s revenue increase to $8 million and, more importantly, they made a pre-tax profit of $1 million. At 25% margin, $250K of the profit came from the revenue increase and $750K of the profit came from the waste deduction resulting from designing and helping them implement a superior material flow process.
Computer Software & Hardware Company – Turnaround of a $12 million revenue / 105 person company integrating their specialized software into a customer ruggedized computer. Firm got into operational and financial trouble due to a latent design defect in the computer. Came in as temporary COO/CFO. Stabilized the situation, then made dramatic improvements in operations resulting in the company being able to deliver high-quality product with a three day ARO delivery while reducing the workforce to 65 people. Secured non-dilutive capital through non-recurring engineering fees from channel partners.
Construction Company – $3.8 million revenue / 25 employee company primarily acting as a sub-contractor on commercial projects. The wanted to increase their revenue and profitability. The previous year they generated less than a 1% pretax profit. We help them develop a strategic vision and plan aimed at revenue growth. Then we help them improve their positioning, messaging, project management process and bidding process. In addition, we help them hire key personal to improve their bench strength. As a result the company increased their revenue to $7.8 million revenue and generated a 5% pretax profit of $400K.
Computer Industry Logistics and Repair Operation – $85 million / 350 employee service parts operation supporting 2,000 field engineers and 200 locations. Processed 30,000 A parts per month; remanufactured 15,000 PCBs. Operation had been badly disrupted by fumbled post-merger integration resulting in same day availability of parts at 24%. Troubleshot root causes and developed “get well” plan resulting in same day availability quickly rising to target value of 85% (next day 98%).
Team – Culture – Leadership
Large Hospital – The IT department with 21 leadership level employees was in “meltdown” on a major project implementation. They became a dysfunctional term playing the blame game for not achieving their objectives. We did a six month time development and help them get their project on track. We worked at the team building level and the project management. The success was highlighted and presented at a conference of like hospitals.
Large Electronics Manufacturer – $120 million revenue / 500 employee company designing and manufacturing products for the professional sound market. We were hired by the COO (heir apparent to be CEO) to build his executive team. While each executive was competent in their area of expertise they lack the competency to act as a team and deal with issues openly and authentically. The COO believed this was a limit to growth. We help the team build high levels of relationship and trust which significantly improved their ability to collaborate and coordination action. While the engagement started with the executive team, we eventually worked with each department to improve their ability to function as a high-performance team.
M&A and Fund Raising
Software Company “Take Private” transaction – Fast growing $35 million / 290 engineering software company. Public company trading on the Toronto exchange with a market cap of $85 million at the beginning of the project. Orchestrated a very broad, disciplined sale process beginning with 95 prospective buyers (55 corporations and 40 PE funds). Sale was consummated in six months in a competitive limited auction involving six final bidders (two multinational corporations and four PE groups). Final sale price was $190 million and the buyer was a consortium of Carlyle, JMI and Pala Investments. Issued Fairness Opinion that was published in the shareholder vote package.
Software Company Sale– English firm specializing in system-on-a chip (SOC) design software was sold in a competitive process to a publicly traded U.S. software company. Board had tentatively agreed to an acceptable high offer price from one prospective buyer (subject to due diligence) when one of the un-successful bidders returned with a subsequent superior offer which doubled the price.
Healthcare Management Advisory Firm – Assisted this closely owned $11 million consulting and professional services firm evaluate an offer to buy the company. Advised the CEO/owner on the pros and cons of the offer and the range of fair values under certain assumptions. Project resulted in the owner turning down the first offer and subsequently receiving a second offer 60% higher.
Internet Company Funding Effort – $65 million 2013 revenue company seeking growth capital to fund next phase development and recap to generate a partial liquidity event. After preparing Confidential Information Memorandum (CIM), deal was presented to over 100 carefully selected private equity funds of which 25 expressed serious interest and did a thorough review of the company. Offers were received and negotiated ($15+ million range), but company owners ultimately decided to continue forward on their own as they had several value creating initiatives in process that were getting good traction. Company decided to move farther along on those efforts, then revisit funding market.
Internet Company Buyside Project – $35 million Internet company desired to diversify into adjacent market space enterprise software services space. Identified and reviewed about 40 prospects. Approached 20 firms and qualified seven for discussions with buyer. Buyer then focused on three for further negotiations.
Telescopic Observatory Company Sale – UK firm that designs and builds astronomical observatories. Sold to new entity formed by former CTO of Google.
Scientific Services Firm – Advised the CEO on the acquisition of a Florida-based coastal engineering firm. Helped develop the business strategy used to seek approval from his board and establish the potential worth of the target firm to the buyer. Assisted with the post-merger development and integration.
Enterprise Software Company Funding – Prepared Confidential Information Memorandum and raised $2 million A round for one-year-old software start-up. Funds were raised from a combination of a small VC fund and several accredited investors. Recruited major notable industry executives to company board.
High tech manufacturing and research firm – Assisted the CEO and President to evaluate a potential $10 million acquisition in Finland. Performed market validation, financial review, valuation estimates, plans for post-merger management and due diligence. Supported negotiations. Buyer eventually decided not to conclude the agreement due to a variety of concerns we raised.
Industrial Sustainability Company – Raised Series A initial funding through a private placement to four large international corporate investors. Prepared the CIM, Management Presentation and the Private Placement Memorandum. Assisted the management team in presentations, negotiations and closing.
Structural Engineering Firm – Advised two partial owners of a Central Texas engineering services company on their effort to buyout their out-of-area partners. Prepared fair market valuation of the business. Helped craft the negotiating strategy and supported the negotiation process.
Software Company – Company had bootstrapped itself from inception to $10 million revenue and 90 people in three years. Cash flow was insufficient to sustain growth due to working capital demands. Assisted CFO/ Controller to implement tighter controls and improved reporting. Obtained $1.5 million line of asset based lending secured by receivables.