July 1, 2018 | by admin
A Silicon Valley technical staffing company with less than $12 million in revenue had a primary goal of being acquired within three to five years. Revenue growth in terms of new customers was non-existent; revenue was sustained by several large publicly traded customers for more than eight years. Unfortunately, the business was not scalable
Consulting for family run companies with less than a million in revenue is a challenge mainly due to pride of ownership. In this case, best practices specific to business policies, procedures and lack of professional, non-family member management were lacking. In addition, overall operations were run with no employee training. Although 401K programs were offered, employee investment was minimal. As a result, a transient organization existed.
Our business consulting experts noted the client had all of the classic symptoms of a founder who had done well in acquiring revenue during a growing economy, where demand for employees clearly outweighed supply; however the founder failed to execute in an industry undergoing consolidation and moving toward outsourcing to the India and China markets. Specific factors included:
Securieon’s business consulting experts provided a two-phase approach to assessing the current state of affairs of the company:
The company’s revenue growth increased four timesEarnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) since Securieon’s engagement, and the business received several offers for acquisition within three years of Securieon’s business consulting experts’ involvement.
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