VICTORY PARTNERS' ROLE AS YOUR FINANCIAL AND STRATEGIC CONSULTANT
On a limited basis, Victory will enter into engagements to provide financial and strategic consulting services to selected clients who need to identify and implement new growth initiatives in order to maximize shareholder value. We limit these engagements to those firms positioning themselves for a recapitalization or sale of their companies within the next 6 - 18 months.
A typical consulting engagement would include the following phases:
- Initial valuation
- Gap analysis and identification of short- and long-term growth initiatives
- Creation (or update) of the Company's business plan
- Strategic initiative implementation and management
Given the short-term nature of this type of engagement, the Victory team will emphasize those initiatives that generate the most value-added for shareholders in the shortest period of time with least amount of capital expenditure requirements. In some cases, even an effective signaling strategy is sufficient to generate a significant increase in the ultimate value to shareholders.
SOME FAQs:
- How are the fees structured in these types of engagements?
Unlike the standard Success Fees earned in our typical buy-side and sell side engagements, Victory's consulting engagements are structured around our professionals' actual time commitments to your project. These fees can be structured in the form of a retainer, or billed on a monthly, weekly, daily or even hourly basis.
- Can you (or do you) take an equity position in my company?
In selected engagements, Victory will partner with your company through warrants and other joint incentives to help maximize the overall value to both parties. These incentives serve to minimize some of the initial capital outlay for the scope of services, while building in the proper incentives to ensure that both parties realize the maximum potential of the engagement.
At this time, Victory does not invest any of its own capital in our clients' businesses. As the implementation of certain strategic initiatives would require, we would work closely with your current commercial banking relationships to restructure your current financial situation, or arrange new financing as appropriate. We also maintain a number of relationships with lending institutions, merchant bankers and sources of mezzanine capital, and can undertake a separate phase to raise the capital necessary to implement these initiatives.
- We understand our business better than anyone. Why should we pay someone else to tell us how to run our own business?
Victory's team has years of combined experience in developing and successfully implementing strategic growth initiatives and building successful businesses, both as investment bankers and principals. This experience gives us a unique insight into the needs and issues that a business owner must deal with, as well as the competitive edge in advising clients on strategies for maximizing the value of their firms. While it is true that you know your business better than anyone, the sum total of our experiences across a broad spectrum of industries and the fresh, outside perspective these experiences bring can add significant value to enhance your company's operating results.
- How are you different from all these other consultants that just take our watch and tell us what time it is?
Because we are specifically focused on those strategic initiatives that will maximize shareholder value in the shortest time possible, we move quickly to evaluate your company and identify the gaps between your current value and your ultimate desired outcome. We work closely with you and your management team to implement these initiatives, as this process leads to our ultimate outcome, which is to deliver the maximum value to shareholders in the final transaction.
