The Equity Investors Network is a group of small business investors that span across the United States and Canada. The network is made up of highly successful entrepreneurs, marketing specialists, management experts, and business professionals with diverse industry backgrounds. As a group we leverage our expertise, business resources, and capital to work with business owners that find themselves in No Man’s Land.
A business owner finds themselves in No Man’s Land when their business growth is impacted by changes in their market, their economic model no longer works, the management structure is no longer viable, and their capital needs are no longer keeping up demands.
This is where the Equity Investors Network can add real value to the stability and fast growth of a business. Our clients get access to world class marketing experts, our in-house legal, accounting, HR, and project management team, award winning technologies, our Import and Export department with offices in the U.S. and Asia, and all the capital you’ll ever need to fund your growth.
Rather than starting our own company from scratch or investing in start-up companies and waiting a period of years before their valuation is attractive to a buyer, we work with established companies that have an annual income of $1 MM – $20 MM. Using our resources and strategies to reduce costs and implementing our advanced marketing strategies to increase sales, we can typically double or triple a company’s profits within 18 – 24 months and increase the valuation of the business so it’s attractive to a buyer willing to pay 3X – 6X multiples.
Our objective is always to create win/win scenarios with our clients. As a business owner, you gain access to our proprietary marketing strategies that can multiply your sales and profits. Once your company has reached its sales and profitability objectives, we bring in buyers who will purchase it for many times what it’s worth today. Thus, we benefit by working with an existing company, rather than trying to start our own companies from scratch. This greatly accelerates the process allowing all participants to make more money in less time and everybody wins.
So how does this work?
The Equity Investors Network only works with established companies so the process begins with an extensive screening and due diligence on all potential clients. Since we only make money if we succeed at growing your company, we must be highly selective about the clients we take on so we go to great lengths during this initial phase to make sure we have an ideal fit with a client.
Once we have a signed deal with the client we immediately begin to prepare the business for sale and taking action to increase the valuation of the business. Using our advanced marketing strategies, we can typically double or triple a company’s sales within 18 – 24 months while employing other strategies to reduce costs, resulting in a larger and far more profitable company.
The diagram below illustrates how our process would work with a typical company doing $2 million in sales and earning an after tax 15% profit margin, for $300,000 in net income. Based on the gross sales, the company only justifies a 3X earnings multiple, so the initial valuation is $900,000.
Over a period of 18 – 24 months, we inject massive amounts of marketing while streamlining operations and cutting costs. At the end of this period, we’ve increased sales to $10 million, while increasing the after-tax profit margin to 30%. At first glance, you might think the company would be worth ten times as much. However, because the gross sales are now $10 million, the company now qualifies for a much higher 8X earnings multiple. Therefore, in this hypothetical example, the company has increased in value by more than 24 times, for a final valuation of $24,000,000.
So here is the question: Are you happy where you are today or would you rather have a smaller piece of a MUCH BIGGER pie?
If you want to know more don’t hesitate to contact me.