ENTHEON PARTNERS CAN BE a secret weapon in the arsenal of experienced value creators. We serve business owners and private equity firms in three major ways. We:
Help you “Grow It before you Sell It!”
We help current owners maximize their shareholder value through aggressive profitable growth well before a liquidity event. The relationship between profitable growth and shareholder value is well documented, but not always well executed. Several recently published long-term studies show that revenue growth is strongly correlated with mid-term shareholder value, future shareholder value, and corporate survival. Yet many owners find it challenging to move beyond the shareholder value that can be created through financial engineering and operational efficiency. Those are indeed powerful levers for creating shareholder value, but they also reach a point of diminishing returns. The real frontier for driving the enterprise value of your business is through well planned profitable growth. In many cases, significant incremental revenue and gross margin can be gained through a relatively modest short-term investment in SG&A, resulting in substantial operating profit and cash flow. This growth in cash flow provides a lucrative “double whammy” by both growing EBITDA and commanding a higher TEV-to-EBITDA multiple, providing a compounded advantage for companies nearing a sale or liquidity event. We call this approach “Grow it before you Sell it”, and using our uniquely integrated approach to growth, we work with owners and private equity firms 18-36 months prior to a transaction to maximize their shareholder value.
Conduct Buy Side Due Diligence, focused on Markets, Customers, and Competition
Experienced business acquirers such as private equity firms often tells us that the expertise for financial and operational due diligence is well established internally at their firms through operating staff, and is relatively easy to augment with outside advisors when necessary. However, it is considerably more difficult, they say, to build in-house expertise or find outside resources to assess the underlying health and forward-looking capability of the “growth engine” of the business. When the macro-thesis is obvious and there is plenty of cash flow to lever, this may not be critical. But for potential acquisitions with new technologies or early adopters as customers, and/or an investment thesis that assumes high growth, the due diligence for growth becomes crucial, and often requires a careful analysis of the target acquisition’s customers, markets, competition, sales and marketing functions, and go-to-market capabilities.
Provide Intermediary and Investment Banking Services
Through our partnership with EBIT Associates, we provide intermediary and investment banking services, advising private and corporate clients on middle market transactions, serving businesses up to $500 million in revenue. EBIT Associates is headquartered in the greater Chicago area, with offices throughout the USA and other continents. EBIT is a strategic partner of Entheon Partners, providing our clients with sophisticated solutions in mergers and acquisitions, private placement, financial restructuring, project consulting and valuation opinions. EBIT uses a customized marketing strategy and state-of-the-art resources, allowing them to close transactions over three times the industry average.
“Ted is one of the best consultants I’ve ever met. He sees the big picture, but doesn’t hesitate to jump into the details. In a few short weeks he understood our business better than some senior hires did after 6 months of working here full time. Most consultants talk a lot and do a little. Ted is the exact opposite. He has become meaningfully involved in our sales and account management organizations, guiding us to take the steps that we need to take, over time, resulting in a sales improvement effort that is getting results.”