Results Integrated Services Case Study 1

Integrated Services Case Study

Accelerating Revenue Growth and Increasing Shareholder Value of a Visual Communications Company with Comprehensive Strategies Across Business Functions

By Michael Wilk, Managing Partner

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.

Results – 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.

 

<< Back to Case Studies