What is clear is that emerging and nascent firms need capital
Houston, TX (PRWEB) April 18, 2007
Getting ‘Useful Capital’ is fundamental to shareholder wealth creation for mid-market private companies reports Ephor Group in “Emerging Capital Options for Mid-Market Business Owners.”
While capital is always the stated need; history and experience show that with the proper expertise, business model, and strategic effectiveness capital becomes a given. Because more than cash is needed to grow effectively; both outside expertise and people support are typically required to grow mid-market businesses profitably.
‘Useful Capital’ takes on the following characteristics:
1. Advisors that fund the capital provide more than simple board governance and financing controls; they provide strategic guidance, industry contacts, and operating expertise;
2. Investors have invested in the particular business sector recently i.e. know the players, customers, partners, financials and key performance indicators intuitively;
3. Understand what is needed to develop and deliver a unique business model; and
4. Ensures the market opportunity is maximized.
There is a higher probability of success when outside help is utilized such that a business is able to focus on its core activities and thus achieve higher returns. Venture and private equity groups have realized this and teamed with advisory groups to invest in mid-market businesses.
Why capital in the first place? There are many ‘financial engineering’ options today which allow business owners to grow, develop, or transfer ownership of their organizations. These methods, recapitalization for instance, allow owners to take some cash out of the business while still retaining control. Other options allow the business to grow through acquisitions or geographically, or allow for ownership transfer of the business so that founders have money for retirement and the business still thrives.
Read the full article, “Emerging Capital Options for Mid-Market Business Owners” at http://www.ephorgroup.com/release_owner_options.asp.
“What is clear is that emerging and nascent firms need capital,” says Garry Meier, Ephor Group founder. Furthermore, “People dependent businesses flourish when ‘Useful Capital’, bundled resources, and employees are all integrated in a unique business model and opportunity. One of the biggest mistakes we see is treating capital as a commodity. It’s disrespectful to the market opportunity.”
“Emerging Capital Options for Mid-Market Business Owners” article includes:
- Capital options for mid-market owners
- Organizational success and failure factors
- How fast a company can afford to grow
- How to utilize ‘Useful Capital’ effectively
About Ephor Group
Ephor Group increases equity valuations for technology and service based businesses. Our approach is proven, pragmatic, and performance oriented. Our methodology Perform Business Process™ fills in the gaps where functional expertise, intellectual capital, or domain expertise are not available internally. Ephor has a history of success, creating over $3.5 billion in shareholder value.
About the Author: Garry E. Meier
Garry Meier founded the Ephor Group to apply the performance improvement methodologies to a diverse group of technology and service based businesses.
Mr. Meier is highly recognized as an industry thought leader in the business and technology services arena as well as outsourcing sectors. He is a noted speaker on strategic effectiveness, value creation, industry trends, capital appreciation, performance improvement, outsourcing and customer satisfaction. Additionally, he is an advisor to private equity and venture firms on their investment strategies and portfolio companies.
Mr. Garry Meier currently focuses on providing board, institutional and C-level guidance to maximize strategic, operational, and equity effectiveness for mid-cap technology and service companies.
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.
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