#1
Client is a family-owned, medium size company in a mature, multi-billion dollar industry. The client has two basic issues.

The first is that its traditional market channels are changing, shifting and becoming more and more competitive. Top line growth is constrained and other channels are difficult to enter with satisfactory margins.

The second is that the cost of a key raw material has sky rocketed, imparting cost pressure (perhaps permanently) on the company – from the bottom up. Furthermore, the market is slow to absorb need price increases. The client has been family owned for almost 100 years and the drive to maintain the family legacy is strong. A sale of the business is not a desirable goal – and the timing of a sale could be bad.

The company is very good with manufacturing systems and project management but there is not a core sense of entrepreneurialism with regard to new opportunity identification and development.

Solution: Client and TCM agree upon a list of operating companies involved in lines of business not in competition with, or as a customer of, the client. TCM approaches each company directly - inquiring into their willingness of to enter into joint venture, strategic alliance (or other form of long term business agreement, conversations. At the end of the process, the client has a working knowledge of alternatives for growth, including the possibility of merger without damaging or eliminating the family legacy. The merger would put the client into a very high growth and profitable new mode. The client is now able to choose between a go-it-alone strategy or a merger strategy. TCM has facilitated the development of meaningful choices for the family.

#2
Client is a family-owned, small, but successful, twenty year operator in a mature, multi-billion dollar industry. The client has an interesting task. The family has decided to sell the entire business at the highest possible price – in three years. The company was founded by the father, who, after nearly losing the business in the beginning, has managed the company in order to avoid risk. The strategic mantra was “Why grow for growth’s sake?” The issue with the mantra is that the sale price will most likely be limited due to the lack of historical growth (that can be studied by potential acquirers of the business.)

TCM was asked to design and conduct a limited project involving the following aspects.

a) What would be the value of the company today?
b) What are some low risk, low cost initiatives that could be initiated today, in order to increase the value of the company in three years?
c) What sorts of things would a high value buyer want to see in the company three years from now?

The project was completed as designed, with the advice transmitted to the client through a series of meetings and management exchanges. A final, short summary report was also provided. The report included a summary of the key ‘investment points’ as if the company were being described to buyers – three years into the future.

#3
Client is a family-owned, development stage, but successful entrepreneur in a rapidly growing industry. The client approached TCM with a request for investment capital. TCM felt that the business and industry held much potential but we advised the client to build the business using resources other than investment capital, until an appropriate valuation ‘nexus’ was reached. TCM provided introductions, relationships and other observations in order to assist in the investment capital-less business build-up strategy. The client has been able to grow at a very rapid and regular pace using an e-commerce sales strategy. Due to developments in the fragmented industry, the client seems to be well positioned to also pursue opportunities not necessarily involving internal growth.