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The 5 to 7 Year Financial & Marketing Plan

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The Plan is a complete package:

  1. Financial Model - 5 to 7 years out
  2. Focused on the Huge Capital Surplus Private Equity (PE) Market and on a variety of methods to generate revenue from client companies and from the PE industry itself.
  3. Focused On:
    1. Generating Closing Fees
    2. Generating On-Going Management Fees from client companies
    3. Generating On-Going Management Fees from the PE industry itself
    4. Generating On-Going Coaching Consulting Fees
    5. Designed to Earn-as-Go supporting the long-term plan
    6. Establish the basis for franchising the system
  4. Establish Company as a service provider to the PE market
  5. Invite PE firm to be major investor in this company
  6. Generate income from management services to PE firms in addition to deal closing fees
  7. Includes extensive marketing and advertising plan based on Direct Response Conversions of Small-Medium-Cap clients and not on image and branding concepts
  8. Grow into franchise operations to spread overhead and people costs. This is linked to the Coaching Business which is part of the Plan.

    This plan created by someone with:

  9. 20+ years with marketing, advertising, and internet experience
  10. 20+ years as founder, CEO of NYC based investment banking firm himself.
  11. Extensive experience with internet technology
  12. A rare combination of skills.

The plan can be delivered only through personal presentation. There is a fee for Step 2 of this process:

1) initial plan in abbreviated form examine fitting it with your investment advisory services

2) the full plan in complete form. This is a for-fee delivery of the Plan.

The fee for working together is for us to negotiate.


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$2.5 Trillion UNinvested Capital Is An Industry of its Own

There are an increasing number of investment bankers who have identified the PE demand for financing Small-to-Mid-Cap companies. The current focus has been on "EXIT" financing for funding the sale of a company for its current owner(s) which generates closing-based-fee-income for the investment bankers.

But it will likely not remain focused on "Exit" financing. That focus is expanding into semi-exits where the sellers remain in place as management and they sell only a portion of their company to the PE investors.


Whether it is a total sale or a partial sale it leaves the question concerning management wide open for review. Management of PE investments will become a major new focus for PE firms and it will be an expanding issue. It expands over time with changing market conditions, and it expands over time with increased size of invested portfolio, and it expands over time with increasing "bad investments" occurring.

Financing a growing industry portfolio of owned and semi-owned small-mid-cap companies will generate a big demand for quality-of-management issues. This field of quality-of-management will become an industry in itself.

Remember, $2.5 trillion of UNinvested funds (now more than 50% of the entire federal budget) means that the PE industry has a two-sided problem:

  1. Ramping up to being able to respond to finding, evaluating, closing and booking thousands (perhaps 10's of thousands) of investments is no small challenge. The banking industry fields total personnel overhead approximately 20 times more people than the PE industry has in place.
  2. Facing portfolio-quality-of-management issues will spawn a demand for the answer to how to do this which itself will have a quality-of-management issue of its own. Meaning that they have to manage the managers.

Remember, there are approximately 5,800 commercial banks in the US and over 6,800 US-Oriented PE Firms. Commercial banks have approximately 20 times larger staffs originating, evaluating, and managing their portfolios. PE firms are significantly under staffed for their mission at a hand.

Having $2.5 Trillion of UNinvested funds is very significant. The PE industry IS an "industry" and it is huge.

Our Plan focuses not only on feeding the industry with close-able deals generating closing fees in sufficient quality as to be meaningful, but also to face the issue of portfolio-quality-of-management as an additional source of revenue as well. Portfolio management revenue could exceed the closing fee potential albeit an overhead challenge.


Private Equity (PE) Is an Industry - Coping With Private Equity Requires Focusing on its Size

That UNinvested capital exists is not new at all. But that a group of investment companies, called Private Equity firms, have amassed such a huge amount is unusual.

This is now a industry of its own. It is larger than the automotive industry or the cereal industry. The estimates of the total US Private Equity's uninvested capital range from $1.5 trillion to over $2.5 trillion for the US alone. Worldwide it is far greater.

This capital cannot, in most cases, be returned to the original investors. And, sitting in many PE firms uninvested could incur penalties for the PE firms. The PE firms are faced with a multiple trillion dollar need to invest... and quickly.

This has given rise to concerns that they will push the prices of their pending investment deals very high as they compete for quality opportunities. Price increases along with the drive to lower the threshold of acceptable qualities is not a strong place to be for the industry.

And this problem has several key facets:

  1. Price competition makes this a sellers' market
  2. Push to invest makes this a conflicting situation where they need to increase quality personnel by high multiples at the same time they face need to cut expenses
  3. They face a portfolio-quality-of-management demand that only increases as they do invest. They have to have a handle on their portfolio and its management.

These three factors lie at the basis of the Plan offered here in abbreviated form to invite presentation.

This is a remarkable situation replete with opportunity.