Client: Marketing Information and Technology

“When you’re getting ready to exit, you don’t do it six months before you sell. You do it five years before you sell. Susan was instrumental in helping me frame how investors and potential acquirers would look at the business. Without her the business would not have grown. The most valuable thing is her intellectual capital. And in addition to thinking about the numbers, she thinks about the business problems.” – Jim Alvarez, President and CEO, Marketing Information and Technology

Business Challenge
Marketing Information and Technology was an application service provider in the direct marketing industry, working with financial services firms. In five years, the company had gone from a small cash basis business to $10 million a year in revenues. The company needed better financial controls, reporting, and risk management programs, and, the owner was considering exit strategies.

The Approach
Susan consulted with the CEO and the accounting staff to implement a new accounting system and to protect and enhance the business for future investment or a sale. Acting as a “business concierge,” she drew upon her network of business professionals to help select new outside accountants, and legal counsel, and helped the CEO select an investment banking firm.

The Work
Susan developed financial procedures appropriate for the size of the business, worked with the accounting staff to manage the implementation and trained them to manage the day-to-day operations of the company. She developed standard operating procedures for the financial side of the business, and identified the appropriate metrics for tracking and measurement. The CEO knew which numbers were critical for decision-making and she established reporting systems to provide them on a regular basis. She impacted the bottom line through her knowledge of the banking industry and her ability to negotiate favorable terms with banks, suppliers and real estate brokers. To protect the company from risk, and enhance its value to investors, she re-worked the external business insurance programs and internal contracts. She helped develop the financial information and the documentation investors would require for due diligence and helped strategize for future sale.

The Results
The combination of improved infrastructure and proper preparation for acquisition allowed the owner to sell the business at a price reflecting its value.