Become a Wealth Creator

“When a man does not know which harbor he is heading for, no wind is the right wind.”

- Seneca

Out of 10 million companies in the U.S., most are small (less than $5 million in sales) or middle-market companies ($5 million to $1 billion in sales). And only 14,000 are publicly held. The rest are private ventures.

Yet few of these founders and managers have been formally trained in finance theory for small companies or middle-market companies. That means they pay too much for the capital to grow the business and often feel trapped in the business long after they would like to move on to create something new.

Luckily, that is changing. Empire Business Transitions offers a growing network of advisors who use the newest theoretical and practical frameworks for valuing and managing small and middle-market enterprises. Without their insights, managers of these companies are at the mercy of the big boys of the capital markets – investment bankers, buyout specialists, and a host of others.

We think it's the right time...

• for other doors to open for owners and managers to raise the capital for growth without diluting the business' valuation...

• for spotting niche opportunities in the marketplace and taking advantage of them...

• for maximizing growth through outsourcing and virtual operations.

And we’re here to teach you how to do it.

We will not only raise your Private Finance IQ, but help you build a business and life strategy that makes your next steps clear. Ours is a relationship business. We give you the building blocks to create, maintain, and protect wealth. You provide the desire and commitment to do it. We will show you how to:

Step 1. Build tactical value

By improving tactical effectiveness, you free yourself to create strategic excellence, to move out of reaction and into Pro-Action. You need to be the one controlling your business. If it’s controlling you, it’s time for major change. If you’re knee deep in operations, find and train smart managers to do what you do. Recognize what role your firm can most profitably play in the market, and consider outsourcing the rest.

Step 2. Build strategic differentiation

Now you can shift your focus to improving profitability and cash flow, and to understanding and building up how the business will be valued in private capital markets. In the process, get clarity and focus on creating your ultimate exit strategy and managing your personal wealth plan.

Step 3. Identify and enhance your value factors

Can you put a value on your business assets, including technologies, processes, and intellectual capital? These are all factors in valuing a business. Learn how you can manipulate and increase the multipliers used in the market of private capital sources with needle-sharp precision, zeroing in on the most profitable aspects of your business and modifying or dumping the rest.

Step 4. Learn the tenets of private finance

Every business needs capital to grow. Investors base the cost of capital on the company’s financial performance.

The public company stock and bond markets where corporate equity is traded have their own set of rules and dynamics. Most of us think they apply to all businesses. But private markets can’t participate unless they are going public, and few private business owners want to give up their equity that way.

In the Private Finance market, capital sources come from different sources – banks, equity funds, and private investors -- each with their own way of valuing businesses. They come as loans, as equity buy-ins, and in other forms. To know how to access capital at the least cost, you have to understand how your potential investors look at your financials, how they perceive value, and how you can craft a strategy that encourages them to give it a higher valuation.

Step 5. Manage valuation perceptions

All investors are attracted to businesses that they believe they can provide the greatest return for the least risk. This ratio is defined in the marketplace by a multiplier. This means that smaller businesses are valued at lower multiples. For them, capital costs more. Middle-market companies are usually viewed as less risky, and therefore can command higher valuation multiples. The trick is to improve the valuation multiple placed on your company by devising a compelling strategy that you can actually achieve.