Portfolio Value Creation Services
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Multiple expansion is no longer the panacea for portfolio ailments. The current business climate requires an even greater focus on a company’s operating performance. This involves getting off to a “Flying Start” in the post-acquisition phase, as well as ensuring there’s a strategy in place to drive EBITDA and maximum value creation over time.
Flying Start
It is tough to recover from a slow start. To benefit from a “Flying Start,” it is critical to have a detailed, executable plan for the early days after the acquisition. This is a must whether the acquired entity is a troubled company or if it’s reasonably healthy with a strong management team and a focus on moving the organization from good to great. Either way, we believe there needs to be a detailed, actionable plan that is executed with discipline and urgency to ensure a flying start.Stanton Associates works with management to develop a plan that identifies and integrates the different strategic objectives. The strategic objectives need to consider various perspectives including financial, operational, markets/customers and HR so that the interdependencies are taken into account. What is key is that the plan be detailed and actionable down to the operating and departmental level. Communication is also important. The plan needs to be clearly communicated, with passionate commitment from the CEO and executive management, to all levels of the organization.
Getting off to a flying start is a critical first step in the portfolio company’s trajectory. It makes sense to have the resources to ensure that is what happens.
EBITDA Improvement
Companies go off track. Performance gaps arise. How do you get a company back in line with its original expected growth curve?Close the gap quickly before it widens with our EBITDA Improvement solution. EBITDA Improvement uses two proprietary services from Stanton Associates:
1. Revenue Acceleration
Exciting, enduring revenue growth is achievable using our 4 Power Accelerators and 2 Key Platforms.
The "4 Power Accelerators" are:
- Make the world know and want your product
- Maximize sales performance
- Form and leverage relationships to turbo-charge sales
- Enter new markets, penetrate existing ones.
Each of these Accelerators relies on a multi-component workplan, addressing both issues at the strategic level as well as tactical execution. We take a very practical approach in order to generate results in a short timeframe. We certainly consider strategic issues which may involve a longer period to show impact, however our focus is on those items which can result in significant top line growth in approximately 12 months.
The “2 Key Platforms” are alignment across functional areas and a performance management system (see more information on our Revenue Acceleration solution).
2. Profit Maximization
Cutting one's way to success is appealing to many, but rarely is it that simple. Stanton Associates has a more thoughtful, yet rapid and effective approach. We analyze five key dimensions of the company to achieve dramatic improvements without compromising the potential for long-term value creation.
Profit maximization is achieved not just by cutting expenses, but by examining all the functional drivers of profit and maximizing them within the time period selected. (See more information on our Profit Maximization solution).
