Industries

Visual communication company specializing in meeting/event management, web-casting and video production

Situation

This closely-held $7MM visual communications company is an established business with a forty-year history. While experiencing increasing market demand for its services, revenues had stagnated over the previous 3 years, with a concentration in just two primary clients. The existing management team recognized the inherent limitations to grow the company in a controlled manner and came to PVG seeking expertise in accelerating revenue growth and increasing shareholder value. 

Solution

What began as a traditional sales and business development advisory engagement soon evolved into more.  PVG recognized the market opportunity -- the growing use of video in corporate communications, along with the company’s core creative and delivery competencies.  A strong collaboration ensued and a mutual trust and respect developed, resulting in a series of strategic efforts which continue to add value for this client and its shareholders.

• Strategy & Planning: developed a comprehensive Strategic Plan which highlighted strengths, outlined enterprise-wide goals and objectives and developed tactical plans for execution.
• Human Capital Management: successfully aligned the human capital requirements with the business goals, and directed the hiring of a Vice President of Sales & Marketing and VP of Operations. 
• Sales & Marketing: PVG created a Sales & Marketing plan and assisted in launching marketing initiatives focused on driving revenue.
• Financial & Operational Management: implemented a disciplined approach to financial reporting and planning, tightened financial controls, and identified supplemental resources as required.
• Corporate Development: identified the investment opportunity, structured the transaction, negotiated the valuation and definitive terms, and arranged the financing, ultimately leading to the closing of a control investment for PVG.
• Capital Development: To support the control investment, PVG raised a combination of preferred equity, mezzanine capital and senior debt, by leveraging existing relationships within the financial community.

Impact

PVG was instrumental in expanding the foundation to grow the company and adopting a more disciplined approach to running the business at all functional levels. After three consecutive revenue-flat years, the company will experience double digit growth in 2007.  Additional accomplishments include:

• Creation of an independent Board of Directors and an Advisory Board will continue to shape the future direction of the Company.    
• Realigning resources allowed company leadership to play a more strategic role while other key hires handle day-to-day operations.
• Re-branding created a new image and identity for this client; along with an updated website, improved product development and a detailed sales plan, they are now positioned as a market leader with greater visibility.
• PVG executed a control investment in the business, enabling company shareholders to monetize a portion of ownership and position the company with sufficient capital to support growth plans, while shareholders retained a significant equity position and the opportunity to gain from increasing future shareholder value.