| Tremendous incremental shareholder
value can be created by Venture Development projects which
are unique "internal business startups" within the
framework of an existing company.
In the article below, “Venture Development: How Internal
Business Startups Leverage Corporate Assets,” Marshall
Graham, Chairman and founder of FOCUS Enterprises, describes
how Venture Development projects combine the operations expertise
provided by FOCUS principals with the firm's investment banking
core competency.
Prior to founding FOCUS, Marshall was a senior manager in
both large and small organizations, including IBM, Xerox and
Credit Card Service Corporation. In 1978, Marshall co-founded
Source Telecomputing Corporation ("The Source"),
the first on-line information and communications utility sold
to consumers. Two years later, The Source was sold to the
Reader's Digest Association.
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Active
FOCUS Deals
Although our firm has over 21 years of experience across many
verticals, Focus currently has active transaction engagements
in the following business sectors:
- Application Software, CRM and LIMS Applications
- Business Process Outsourcing
- Digital Video Surveillance and Networks
- Fire Protection
- Government IT Contracting
- Government Program Management and Organizational Change
Management
- Healthcare
- HVAC Products
- Information Services & Consulting
- IT Services and Staffing
- Manufacturing
- Medical Devices and Equipment
- Pharmacy / Distribution
- Physical Security Integration and Access Control
- Promotional Products Distribution
- Systems Integration
- TeleHealth
- Warehouse, Distribution and Logistics
Our transaction process provides us with up-to-the-minute
market knowledge in these sectors which may be of interest
to you.
Inquiries should be addressed via e-mail to info@focusbankers.com,
by telephone to 202-785-9404 x224, or by fax to 202-785-9413.
Venture
Development: How Internal Business Startups Leverage
Corporate Assets
By Marshall Graham
Venture Development projects are unique "internal business
startups" within an existing operating company that can
create tremendous incremental shareholder value. For many
years, FOCUS Enterprises has offered Venture Development consulting
services to the firm’s clients. Venture Development
projects combine operations expertise provided by FOCUS principals
with the firm's investment banking core competency.
COMPANIES OFTEN LACK ENTREPRENEURIAL
MANAGEMENT TALENT
Large and middle market companies often lack the entrepreneurial
management talent to successfully "start up" a new
organization. FOCUS principals have extensive start up experience
working as consultants, principals and investment bankers.
FOCUS can conceive, plan, execute and assist with the financing
of these projects until they reach critical mass and either
should be integrated with the mainstream organization or spun
out with separate external resources including next stage
financing.
EXAMPLES OF HOW COMPANIES
BENEFIT
FROM VENTURE DEVELOPMENT
Library Systems and Services, Inc. (LSSI), a federal government
contractor that staffs and manages all operations of the Department
of Energy library system, engaged FOCUS to evaluate the possibility
of migrating their outsourced management business model to
the public and academic library markets.
FOCUS assisted LSSI management with all phases of the strategic
evaluation and advised LSSI on the best way to enter these
new markets. FOCUS principals also advised LSSI management
on entering into a strategic corporate partnership arrangement
with The Follett Corporation to include a working capital
investment in LSSI.
In another example, some years ago, FOCUS was engaged by
SRA Corporation to assist with the development of IsoQuest,
Inc., an internal startup company with the objective of commercializing
a text processing software product that SRA developed. FOCUS
assisted with strategy, business plan development and staffing
and also sourced venture financing for this startup company.
Finally, Cordant, a federal government contractor, was engaged
by the federal court system to collect and disseminate corporate
bankruptcy information. Cordant engaged FOCUS to determine
whether the bankruptcy information that they collected for
the Federal Government could be sold to private enterprise
companies.
FOCUS principals evaluated all potential markets for this
information and ultimately advised Cordant that setting up
an internal organization to accommodate commercial sales of
this information was not viable.
THE VENTURE DEVELOPMENT PROCESS
BEGINS WITH EVALUATION
The FOCUS Venture Development process begins with evaluation
of technologies, new product initiatives and/or service offerings.
Next, company management is advised on the alternatives for
commercializing these potential new ventures.
When necessary, market analysis is conducted, including a
competitive overview, facilitation of a "strategic thinking"
process with management regarding the new venture and, if
appropriate, assistance with the business planning process
for the "internal startup." FOCUS principals also
may assist with organizing the management team for the new
venture and sometimes assist the client company with raising
outside investment capital.
DEEP C-LEVEL EXPERIENCE COMBINED
WITH INVESTMENT BANKING EXPERTISE CREATES A FOUNDATION FOR
SUCCESS
If your company has developed a technology, a product or a
process that your management believes could be the centerpiece
of a new corporate venture, please call our firm today. The
combination of operating experience and the investment banking
expertise of FOCUS principals may be able to assist your company
with evaluating these ideas and ultimately commercializing
these opportunities to enhance the shareholder value of your
company.
For more information, contact
Marshall Graham at 202-785-9404 x226 or graham@focusbankers.com.
Selling Your
Business—Securing What You Want for Yourself, Your Family
and Your Employees
Two December Seminars for Owners and CEOs
To help business owners and CEOs assess the risks and opportunities
of selling a business, FOCUS Enterprises, Inc., along with
four additional leading firms--Right
Management Consultants, Shared
Equity Strategies, McCullough
& Nicholas, P.L.C. and Bernstein
Investment Research and Management--will host private
breakfast presentations from 7:30 to 11:00 am on December
2 at The Center Club, 100 Light Street, Baltimore, MD and
on December 5 at the Tower Club, 8000 Towers Crescent Drive,
Vienna, VA.
Participants can select the most convenient time and location.
Business owners and CEOs attending the seminar will gain
a wealth of valuable financial information:
- Position a company to maximize the valuation multiple
- Prepare a company to maximize the sale price
- Time when to begin preparing for the sale
- Minimize personal taxation on the transaction
- Determine exactly how much is needed to retire comfortably
- Execute the process successfully
Individuals who will benefit most from this unique seminar
include presidents, CEOs and owners of companies who are considering
some type of sale or recapitalization within one to five years.
Relevant companies are: private companies, public companies
with revenues under $100M, government contractors, venture-backed
companies, companies who have or are considering ESOPs and
individual or family-owned companies.
Participation, strictly limited to company owners and CEOs,
is $50 each, payable in advance. Register online at www.focusbankers.com,
call 202-785-9404 x224, or send an email to doug.rodgers@focusbankers.com.
Corporate
Development: Transforming Vision into Economic Reality
FOCUS Partners have completed numerous corporate development
consulting assignments resulting in increased shareholder
value. While most of these assignments are completed to position
the client company to enter into a corporate financial transaction,
many assignments assist client companies in solving a specific
problem within the organization.
FOCUS Partners assist companies with corporate strategic
planning and take advantage of the firm's off-site and facilitated
"Strategic Thinking" sessions. FOCUS Partners also
assist clients with completing business plans, sales and marketing
plans, act as new business developers and even assisted clients
with new venture development and execution where we have participated
with client companies as interim "start-up" managers.
About FOCUS Enterprises,
Inc.
For 22 years, FOCUS has successfully assisted
clients with corporate development consulting assignments;
merger, acquisition, and divestiture engagements plus capital
raising and capital formation assignments. In a mixture of
services uniquely beneficial to clients, FOCUS
integrates consulting and transactional expertise with superb
research capabilities and precise, proven methodologies.
Unlike larger investment banks, FOCUS processes
are optimized and proven effective in our target marketplace
-- private companies or operating units with revenues in the
$5 million to $100 million range. Eleven full-time FOCUS
Partners provide well over a century of C-level operating
experience in a variety of industries. Operating nationally
and internationally, FOCUS works with buy-
and sell-side corporate clients, private equity groups, holding
companies and early stage venture capital firms in the following
areas:
- Aerospace
- Government Contracting
- Healthcare
- Manufacturing and Distribution
- Media and Communications
- Retail
- Technology (hardware, software and services)
- Telecommunications
Your comments, suggestions and questions are welcome and
encouraged. We want to hear from you.
You are receiving this newsletter because you have had personal
contact with a FOCUS Enterprises partner
or principal or have requested this newsletter on our website
or have been contacted by FOCUS on behalf
of a buyer, seller, corporate finance client or consulting
client.
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