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CHALLENGE | ACG APPROACH | RESULTS
CHALLENGE
 Our client, a privately-held leading provider of high-tech security solutions to many government organizations and Fortune 500 companies, had some considerable growth ambitions. It achieved several major successes and was operating profitably but was unable to significantly expand organically due to limited capital availability and inadequate human resources and thus the founding members approached us for assistance.
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ACG APPROACH
A professional team was quickly created to address the issues. The team first analyzed the business opportunity and the market potential of the company. Once the due diligence on our clients privately-held company was completed and sufficient market capacity was validated, several key marketing presentations were produced, including an informative video clip, brochures, and product presentations that would later be used to attract new key management personnel and strategic investors. Furthermore, an entirely new strategic business plan was created for the company which significantly altered the existing business model creating a possibility for new revenue streams and outsourcing non-core activities.
Next, in order to attract sufficient capital, an extensive corporate valuation study was undertaken using the latest financial thought from both academicians and practitioners. Since the company was not a public entity, a Private Placement Memorandum was created sighting all possible risk factors and outlining the investment opportunity. The team also engineered a customized financial security that would be appealing enough for potential investors, given the significant existing business risk and liquidity issues, yet still maintaining a feasible capital structure for the company. Our staff also assisted the client with various other documents such as subscription agreements and vendor contracts.
After all of the research was completed and document packages prepared, our team proceeded with the next two items on the agenda. First of all, we needed to attract new talent to the company in order to have more recognizable names with great reputation in the industry who could promote the company using their existing networks. Second of all, we needed to go on the road to meet with our expansive network of private and institutional investors.
The team undertook both of these tasks with great vigor and excitement. Numerous interviews were conducted for C-level positions in the company until a very experienced and knowledgeable team was finally compiled. The new management had every trait desired by the founders, including top business school education, decades of industry experience, and a similar strategic vision for the company.
The last task was more challenging. Raising private money during the worst economic slump in decades was no easy undertaking. However, once again our team was resilient enough to raise eight figures of strictly private funds in two rounds of financing, which was sufficient to capitalize the company to allow it to expand as it had envisioned.
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RESULTS
 The new capital enabled the company to expand its sales force, increase the marketing spending, enlarge their R&D department, undertake new projects, attract more talent, and make several small acquisitions. The new management team succeeded in opening many doors, previously closed to the founding members. The new management was also able to successfully implement our strategic business plan, meeting and even exceeding all financial projections. The companys revenues grew ten-fold in a period of 18 months after the completion of the project. The company is currently poised to either go public through an IPO or merge with a larger publicly traded entity, allowing for a favorable exit for all initial investors and further increasing shareholder value.
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