STRATEGIC & ENTERPRISE CRISIS MANAGEMENT - FREQUENTLY ASKED QUESTIONS

Some of the questions that we frequently encounter from clients and prospects are:

How are the fees structured in these types of engagements?

 Our pricing proposition allows companies to gain an entire team of seasoned professionals offering a wealth of experience in management, consulting, and investment banking at a fraction of the cost of employing ONE additional senior-level employee.  The focus of any Advisory Engagement is to become rapidly self-sustaining (pay for one’s self through increased revenue, cost containment, implementation of new, profitable projects, or strategic partnerships that provide immediate accretion of earnings).
Victory offers a ‘Value-Added’ proposition for under-capitalized, emerging middle market companies that is unparalleled. Unlike the standard Success Fees earned in our typical buy-side and sell side engagements, Victory’s consulting engagements are structured around our professionals’ time commitments to your project.  These fees can be structured on a flat fee basis by project, in the form of a monthly retainer, or billed on an hourly basis.  Our value proposition is based on the premise that our Client utilizes an entire team of experienced professionals for less than the fully-burdened cost of one additional management person.  Furthermore, within a short period of time, our team would expect to be paying for ourselves on a monthly basis, based on an agreed upon implementation schedule.

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 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.

 Typically, 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.

Many consultants simply regurgitate our own ideas and information in a nice presentation for a fee.  How does your firm differentiate itself?

Because we are specifically focused on those strategic initiatives that will maximize shareholder value in the shortest time possible and draw from past management expertise in similar situations, we move quickly to evaluate your company and identify the gaps between your current value and your ultimate desired enterprise value.  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 a liquidity event.

In what industries do you specialize?

We bring a wealth of experience, subject matter expertise, contacts, and proven results to the table in a host of industries, such as banking and financial services, direct marketing, software and related technology, specialty retail, real estate investment & services, home building and related construction, health care, staffing, component manufacturing, and oil & gas.

How do you measure your results?

Our results are quantifiable because we establish performance metrics at the beginning of an engagement with our Clients so progress and results can be tracked and ultimately measured against a base-line.