DRIVING VALUE THROUGH STRATEGY, TRANSACTIONS, AND EXECUTION
SVG ADVISORY CAPITAL AND
INVESTMENT BANK ADVISORY PRACTICE
SVG supports business owners and leaders in choosing the right capital financing structure or aligning with the right investment banker and supporting the company through the capital or M&A transaction. Preparation optimally should begin 3 years in advance when the company is experiencing growth.
While business owners may have conducted a sale or generation transfer once or a few times in a career, buyers are oftentimes very skilled in the process because of the many transactions they have executed. The SVG goal is to afford you an edge in the process to level the playing field.
The M&A process is to understand the private equity buyer, make your business attractive to that buyer, and sell a majority of the business in the transaction to gain a large tranche of liquidity. Retaining a minority investment to guide the company forward is good for the continuity of the business and affords you a future upside with a second “bite at the apple.”
Historically, leadership of an ongoing business is about setting the financial plan—developing the operations plan—and aligning the culture to facilitate the engagement of the leaders to assure quality growth. In this pursuit as CEO, your growth planning and execution is important. In which process have you spent the most time in your career? If you answered leadership of your business, then help with the M&A process is something you should consider. Together we will reverse the expected buyer–seller power imbalance as about 3 years’ sales and earnings outlook that you will control in the equity “rollover” as managing partner in the go-forward company.
This future planning will net a higher sales price at exit #1 while you stay focused on your go-to-market plan for exit #2 and the second bite at the apple.
Stephen Reed
With more than 15 years of Banking and Private Equity experience, Stephen’s transaction experience spans across a diverse array of asset classes but has a particular focus in energy, infrastructure, and real estate.. Stephen has advised public and privately held companies on their strategic operations, transformative initiatives, and buy and sell side processes.
Prior to leaving banking to work in private equity, Stephen was the Southeast Regional President for Amarillo National Bank, spent three years as a director in Corporate Banking for Regions Bank and five years as a Senior Director at Alvarez and Marsal Management Consulting, where he served in their North American Commercial Restructuring practice, a division supporting merger and acquisitions, turnarounds, and performance improvement.
Mr. Reed earned a master’s degree in business administration from the George Washington School of Business in Washington D.C. and his bachelor’s degree in communications from Texas A&M University. At Texas A&M Stephen was the first African American to play golf in the Big XII Conference in the year 2000. He went on to become team captain and an All Big XII Conference Player leading the Aggies to their first NCAA appearance in almost 10 years. Stephen signed with Nike after graduating from Texas A&M and played his first PGA Tour event at The Houston Open in 2006.