There is an Arbitrage Opportunity in the way Businesses are valued for Sale …
Exploited by an elite band of Financial Revolutonaries involved in Private Equity Acquisition, Business Development and Management Consulting.
Do you want to discover how to use the standard financial reporting formats to Double the Value of a Profitable business without the need to increase Sales
Here You have an Invitation to take advantage of the Radical concepts based on the application of Micro-Economics, now replacing the traditional wisdom of Accountants in the valuing of businesses.
With a targetted focus of rapidly increasing profits and building the value of businesses for sale – you can acquire the ability to …
determine achievable results, and with adoption of a decision making strategy – Management by Objectives – accelerate Wealth Creation for Business Owners (sharing in the magnified gains)
It is debatable whether the norm of applying multiples to earnings is true value reflecting the worth of a business or is it merely an arbitrary figure chosen as part of a cargo cult ritual?
The significance for the ambitious financially astute is that the formulation of Business Valuations by Brokers and Accountants and the indoctrination of their clients – buyers and sellers – is able to be manipulated by financial engineers to accelerate wealth creation.
For the cult which believes that the value of a business is equivalent to the average earnings of the last 3 years multiplied by 3 (the earnings multiple) you will get little argument when you double profits setting a value for a business of twice what it was previously. This leaves the door wide open for financial engineers to build rapid increases in business valuations for accelerating wealth creation for business owners and our consultants/Partners.
CAPITALIS CAPITAL Economists and Management Consultants are able to systematize Cash Flow Management Programs based on the formularized valuations popularized by Brokers & Accountants..
Which can reduce costs, increase profits and rapidly build business valuation as all the parameters are integrated to produce desired outcomes without the need to make any more Sales.
For Example: Cost Segregation and Cash Flow Repurposing can significantly alter the Financial Portrait of a Profitable Business – which if sustained for the minimum term of 3 years (needed to validate Earnings Consistency) will propel the valuation of a Profitable Business.
Business restructuring and transactions transformation permit the realization of increased profits even before expanded marketing programs kick in.
When cost savings, improved efficiencies and effective CRM Marketing Campaigns complement crafted financial engineering the real magic begins – boosting all performance parameters.
Instead of utilizing financial engineering as stand alone benefactors for business results putting all players on the field simultaneously the uplift in sales, revenue, new customer acquistions and profits can not only grow a business that process can exponentially compound growth of a business and send valuations in to the stratosphere.
Minimum expectations are tripling profits by year 3. When multiplied by 3, 4, 5, or 6 multiples dollar metrics take earnings up the ladder – where business valuations can rise to 3X3, 3X4, 3X5, 3X6 and 3X10 to 15 Earnings.
When a business can be listed on an exchange the latter can apply *(even higher depending on the industry.
See how your mental arithmetic is by quantifying dollar results of a $1million dollar a year business (before tax profits) when financial engineering is first cab off the rank.
Then add a marketing multiplier to boost revenue by 3 to 5 times increased expenditure for promotional campaigns funded by recycled Cash Flow and Cost Savings.
From that point on you should start to develop your business plan as a Management Consultant/Partner in Our Organization.
Our Business Model is to develop your financial management and problem solving skills which you use to assist profitable businesses improve operating profits and build business value for sale of the business for a lot more than it is worth when we first knock on their door.
We operate on a results only basis sharing what we help produce. There is no need for us to seek 100% acquisitions as we obtain free-carry equity which assists clients build the value of their business more efficiently.
Your training will introduce you to the concept of not burdening a business with expenses, which negatively impact earnings and tarnish business valuation.
By our organization taking an equity position either directly in a business or in a JV entity the reporting vehicle remains unblemished, profits are unimpaired the value of the business is higher than what it would be if we billed for services instead of accepting equity participation and kept expenses down for our clients.
The rewards plan for our Consultants & Partners is a share of results – delivered tax effectively, with preference for leaving revenue stream in client businesses and we obtain capital benefits which do not detract from our client’s business earnings.
The absolute potential earnings for our organization and partner is astronomic – our objectives are to multiply earnings & business valuation for sale several times over.
Take a simple example of a small successful business making before tax $1million. Say we only manage to double its value and take a 30% share in the uplift $300,000 *(100% of our earnings) booked to our Corporate Account.
We make provision for tax at 21% – leaving 79% for distibution.
The organization retains 29% – from which operating expenses are paid *(producing an insignificant tax benefit)
The remaining 50% of earnings goes to our partners “who are spread over 3 levels”
i) City Consultants *(15%)
ii) City Associates *(30%)
iii) Divisional Managers *(50%)
Each class of Partner is eligible for overrides on their team members – receiving the differential between the two earnings share rates
if a Divisional Manager attends to all aspects of a clients program their entitlement would be 50% of $300,000
Realistically you should not be only endeavoring to double the value of a client’s business – when you should be at least tripling each of your client’s businesses.
Recompute an estimate of our earnings and your share with the assumption of producing that as the minimum result when you have earned your spurs.
Profitable Businesses are bought and sold most often at multiples of 3 times earnings. Thus the ROI for the Investor should be above 30% (33% to be exact).
Applying the Rule of 72 by reinvesting earnings of 30% compounding the Capital value should double every two and a half years (2.5years) – without even breaking in to a sweat.
Applying the techniques you will be taught earnings could be doubled within the first year of taking on a new client even before applying the additional marketing programs our organization can crank up with little or no cost to our clients. There should be cost savings on most marketing campaigns clients have before we ride in to town.
The CRM Marketing Programs we install have raw costs of less than 90% of standard marketing programs – as it is far easier to sell a product or service to an existing client than to make a sale to a new customer.
On top of selling more to customer bases we provide irrisistible offers to the customers of our clients – which is an effective way to generate referral business – the most cost effective method of marketing to new customers.
Once you master the full range of our services
How many $1million dollar clients would you aim for each year?
Is there any reason you would not aim at $10million clients or a $100million one ?
Assume that you wish to be a serious Partner and therefore will build a team of consultants – recruiting training, assisting and supervising 5 people who start at the base level whose earnings share is 15% – you as a Divisional Manager would receive an override of 35% of the Gross Earnings each produce for the Organization.
(Say Proceeds from each client is $300,000, each consultant *(and yourself) have 10 New clients a year, multiply and add up the numbers …
If that basic math is too difficult then this business is beyond your capabilities.
Obviously you need training in a number of elements – but we will not be teaching arithmetic. You must hold a University Degree *(any discipline), have a tremendous business drive and you must be a clear thinker, rational and decisive.
If you satisfy the criteria to join us book an appointment to see if you are a good fit.