CLOSELY HELD COMPANIES
Privately held companies use many forms of ownership—private equity, ESOP, family-owned and joint venture—to name a few. As the owner of a professionally-managed company, you face challenges in giving direction to your management, participate in goal setting, evaluate management and monitor progress to achieve the strategic goals so you can become a more effective and successful owner. You can consult with GH Growth Advisors on how best to accomplish these goals effectively and constructively.
Established companies grow through three basic strategies: increase market share, develop new customers and channels or develop new products. Other strategies are frequently last-ditch efforts or unlikely to succeed. Bad decisions can be avoided by seeking advice from sources that have repeatedly faced similar decisions.
Client Engagement A company that provided promotional material to businesses was considering to grow by starting a software subsidiary in order to grow. GH Growth Advisors convinced worked with the owners that identifying that there was a larger potential and lower risk in the existing business.
The challenges of running a privately held company often provide little time to step back and consider profit improvement, particularly when it involves complex decisions such as shedding customers or closing down a line of business. Engaging outside advisors often provides the catalyst for a systematic review of the business.
Client Engagement For a company in Central America, a systematic analysis showed that the company’s growth strategy did not focus on the most profitable customers.
Privately held companies are often challenged by the limited scale of operations. However, alternatives such as franchising or international expansion rarely produce the expected results. Lower risk alternatives to add scale and improve profitability are available to both experienced and new owners.
Client Engagement For one client GH Growth Advisors has completed 6 due diligence projects that enabled the client to more than double its revenue.
Due to the unique constraints of privately held companies, they often consider more alternatives than might be expected. Quantifying the capital to support such a collection of possible strategies requires financial models that provide unparalleled flexibility in the assumptions and design.
Client Engagement In order to support a capital raise for a new business plan, GH Growth Advisors built a consolidated financial model that included the income statement, balance sheet and cash flow statement for each of 18 divisions.