RANEY & ASSOCIATES
Enterprise Value Creation (EVC),
Direct Listings, and
Trading Market Development of Listed Shares
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Success Fee Based Pricing and Guaranteed Results
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Enterprise Value Creation™ (EVC)
Trading Market Development of Listed Shares
The Enterprise Value Creation™ Process
Integrating Corporate Development, Private Placement, Investor Relations, and Brand Awareness Campaigns with Corporate Governance
Enterprise Value Creation™ (EVC) Goals
Inorganic Revenues and Gross Margins, Strategic and Institutional Capital, Market Valuation Multiples, Deal Flow Pipelines, Brand Equity Development, and Liquidity for Expansion Capital, Employees, Insiders, and Shareholders
Proven Enterprise Value Creation™ (EVC) System
Corporate Development will increase growth exposure, minimize market and capital structure risks, increase returns on capital investments, while Investor Relations grow investor expectations to drive market valuation multiples, impacting all components of leading value creation models (see BCG Total Shareholder Returns practice).
Equity capital market solutions for sponsored portfolio brands
Corporate Development as standard Board of Directors’ strategy
Valuation multiples becoming a primary corporate objective
Enterprise Value Creation™ (EVC)
Enterprise Value Creation™ (EVC) is a premium service, integrating Corporate Development, capital raising, Investor Relations and brand awareness campaigns to accelerate growth in corporate resources, valuation multiples, shareholder returns, and liquidity for employees and institutional investors alike.
ECV offers tremendous ROI due to its success fee based pricing, proven results, and comprehensive C-level capabilities.
Corporate Governance is the essential ingredient of Enterprise Value Creation™ (EVC), especially for the transparency and full disclosure of Direct Listings and public issuers, which includes Board resolutions, deal infrastructure; management of target outreach campaigns; interaction with stakeholders, as well as real time monitoring of EVC metrics and corresponding campaign adjustments.
Corporate Development requires Board resolutions that may redeploy assets. To avoid internal conflicts, especially regarding management’s incentives to execute pre-Corporate Development Board mandates, an Executive Director of the Board should manage EVC. This will ensure all available opportunities are explored and expedite due diligence.
Complete deal cycle management, market execution and integration includes value chain mapping, target selection, positioning strategy, target outreach and engagement, due diligence, negotiations, cross functional team closings, editing of marketing content (original & curated), conflict resolutions, professional services outsourcing (SEC attorneys, CPAs, litigators, Internet and social media marketers, revenue services, and IT consultants) project management; acting as shareholder contact, press release and media spokesman, and listing exchange and regulatory liaison.
Mapping Industry Value Chains and Deal Origination
Enterprise Value Creation™ (EVC) includes strategic investor targets during capital raising campaigns, which may lead to a corporate investment but should open up opportunities to explore Corporate Development deal making. Identifying strategic investor targets requires extensive analysis of industry value chains for distribution alliances and innovation partnerships that can expand service/product offerings to grow gross margins.
Mapping Industry Value Chains also reveals a market’s trends, institutional investors appeal, and valuations that determine brand positioning strategies for Investor Relations and brand awareness campaigns, which are re-enforced by completed Corporate Development deals that grow valuation multiples.
Market Valuation Multiples
Positioning strategies form the platform and framework for Corporate Development and capital raising outreach campaigns. Growth in inorganic revenues, gross margins and expansion capital drive investor expectations and market valuation multiples. And completed deals re-enforce a business model’s value proposition and Corporate Development strategy to grow market valuation multiples that minimize dilution from share issuances.
Liquidity options are obviously more plentiful for listed issuers because of the direct access to equity capital markets and ability to collateralize ticker symbols through the private placement issuance of convertible debt.
But for private issuers liquidity options are plentiful, especially for general partner and family office sponsored brands, which have already passed institutional due diligence and may have institutional representation on their Boards. These portfolio brands may be candidates for trade sales or single asset purchases, but are considered the top prospects for Direct Listing success because of the credibility institutional investors bring to the capital markets.
And for private brands without institutional endorsement, Direct Listing are still a possibility, especially through Corporate Development programs that can be supported by brand value propositions and market traction.
And for all companies, listed and unlisted, institutionally endorsed or not, an ESOP program to provide liquidity for employees and trading markets is highly recommended!
Brand Equity Development
Brand Equity Development is the theme of Enterprise Value Creation™ (EVC), as each stage in the Corporate Development deal cycle as well as the retail stock investment process has a corresponding brand development phase.
The first phase of Brand Equity Development is awareness, which corresponds to deal origination in Corporate Development and stock promotions, usually through press releases for retail investors.
Engagement of consumers through trails, test drives, and demonstrations corresponds to due diligence and negotiations in Corporate Development, and stock research for retail investors.
The conversion of consumers into brand owners corresponds with Corporate Development deal closings and integrations, and retail investor becoming shareholders.
Consumer satisfaction with a brand is equivalent to new inorganic revenues and expansion of gross margins through Corporate Development as well as capital gains for shareholders.
Promotion to other consumers of brands that have become staples through repeat purchases or long term ownership correspond with the development of deal flow pipelines and investor expectations that drive valuation multiples through Corporate Development and the accumulation of stock for retail investors.
Scaling Enterprise Value Creation™ (EVC) and Metrics
Enterprise Value Creation™ (EVC) can be scaled through interactive multichannel audience engagement using Internet, social media, and email marketing to expand brand awareness throughout industry value chains and the investment community.
Metrics, such as website hits, “Likes” and opened emails can be monitored in real time for campaign adjustments and system modifications. For listed issuers, Level II trading, bid asks spreads, and investor comments are also monitored.
Enterprise Value Creation™ (EVC) was developed for Direct Listings, whose lack of investment banking sponsorship requires developing their own capital markets presence. The initial focus is on growing the retail shareholder bases, whose buying supplies the price appreciation and trading volume that provides liquid exit strategies to attract private placement capital from hedge fund managers.
Direct Listing are not just for Unicorns, who sacrifice tremendous growth in market capitalization and brand recognition staying private until a $1 billion valuation can be validated by capital market experts.
For pre-Unicorn brands with market traction that can justify Corporate Development strategic alliances or partnerships, especially for those with institutional investor sponsorship and Board representation, executing their early growth strategies as a public company establishes market valuation multiples that facilitates public and private offerings with minimum dilution.
Trading Market Development
Enterprise Value Creation™ (EVC) was invented for Trading Market Development of shares from Direct Listings. Without investment bank sponsorship through an IPO process, the directly listed companies have to develop their own market demand from retail investors. Their ability to create the trading volume and share price appreciation to assure a comfortable exit strategy for private placement investors determines whether they get capital from hedge funds.
Layered on top of these retail Investor Relation campaigns, Corporate Development is intended to create growth expectations for private placement investors to extends their holding periods before they monetize their convertible debt positions. Creating the market demand for this eventual supply of private placement stock is critical to protecting investor expectations, valuation multiples, shareholder returns, and market capitalization.
George Raney has C-level expertise in capital markets, Corporate Development, Investor Relations, and direct listings, providing private placement capital, Enterprise Value Creation™, shareholder returns, liquidity, and corporate governance.
George is an unlicensed professional intermediary operating under client corporate veils to deliver performance-based campaign engagements within the following timeframes: within one quarter, source all of the working capital required for the next phase of milestone projections; within two quarters, close a Corporate Development deal that generates new revenues; within three quarters, create brand awareness campaigns to grow market expectations that double brand value; and within one year, a Direct Listing at full market value with an active and liquid trading market for its shares of common stock!
George’s good fortune includes early career work in the vanguard of two new industries. George originated private placement mandates from public CEOs, which he sold to offshore funds. Additionally, George managed the US Corporate Development for Chinese portfolio brands of Asian private equity funds seeking liquidity and capital from US listings, including China’s first Direct Listing and its first outward bound US investment.
Not only were some of these China deals historic firsts, they led to several exclusive State mandates, including the opportunity to source the capital, technology, and content for a national fiber optic backbone, the opportunity to sell the first majority interest in a PRC cable TV network to foreign investors, as well as the opportunity to commercialize a Yew tree forest for the production of the super and natural anti-cancer drug Paclitaxel.
George developed Proactive, Alternative Investor Relations™ (ProAltIR.com) to provide listing liquidity to attract institutional investors, boost their returns through Corporate Development campaigns run over client Investor Relations platforms, which are scaled quite cost effectively through Internet, social media, and email brand awareness campaigns throughout the investment community and client industry value chains to deliver pipelines of proprietary deal flow and investor expectations that drive valuation multiples to minimize dilution from share issuances.