Ephor Group's Useful Capital Investment Criteria

Useful Capital is available to companies with the following characteristics:

1. A talented team has developed a unique business model and currently is a Star Performer (the company performs in the top quartile of its industry against benchmarked comparables).
2. A company with a market opportunity greater than $50M in the next ten years.
3. Ability aggregate a portfolio of businesses (growth through tuck in acquisitions to cross-sell to existing customers and/or where we can add proprietary IP).
4. Platforms attributes and value-proposition.

People dependent businesses flourish when ‘Useful Capital’, bundled resources, and employees are all integrated in a unique business model and opportunity. Sometimes institutional investors are too focused on management and the leadership team and not enough focus on business models and strategic effectiveness resulting in difficult investments. Typically, a good institutional investor that represents ‘Useful Money’ can be an effective board member for emerging, mid-market organizations that need additional guidance and operating knowledge.

What is clear is that emerging and nascent firms need capital. Emerging firms are strategically biased by the leader/founder and thus need outside perspectives in evaluating and executing the long-term prospects for the business.

 “Useful Capital” providers illustrate the following capabilities:

1. Advisors that provide more than board seat occupancy and financial controls; they provide domain guidance and operating expertise
2. Previous investment experience in the specific business sector; i.e. they know the players, customers, partners, and key performance indicators intuitively
3. Understand what is needed to create wealth in the specific sector, not theoretical or unproven ideas
4. Created a “Franchise Effect” and Effectively Positioned a Brand as #1
5. Built distribution and sales forces that are more cost-efficient than the competition
6. Created scalable operating processes with measurements that exceed industry benchmarks: i.e. greater than $200k of revenue and 30% field level EBITDA per employee
7. Implemented product portfolio strategies and tiered service levels
8. Created Channel and Strategic Alliances that generate at least a third of new sales
9. Utilized outsourcing techniques to create and implement “best of breed” processes.

 Getting ‘Useful Capital’ and external perspectives are fundamental to creating wealth!

 

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