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Growth Strategy Acquisitions Shareholder Value Valuations Commercialization

 

 

 

Overview of Services

The Winbridge Group, Inc. provides an integrated set of corporate development services to our clients.  Our focus is on working with companies engaged in manufacturing industrial or healthcare products.  We have worked extensively with European companies as they sought to grow and develop their U.S. sales.  Our engagement teams are highly experienced professionals with backgrounds in industries, technologies and functions that match the particular requirements of the engagement.

Corporate Growth Strategy

Many clients find that focusing energy and resources on a limited number of areas benefits the overall performance of their corporation.  Winbridge works with clients in a creative workshop environment using sophisticated tools and techniques.  The objective is to review the scope of the corporation's activities and develop a strategy to grow and expand operations with significant potential to meet customers' needs.   Strategic Business Units that do not fit the overall corporate direction are also identified and appropriate actions are planned for them.

Acquisitions, Joint Ventures, Strategic Partnerships

An outcome of a Corporate Growth Strategy could be a plan to expand or diversify one or more Strategic Business Units.  Winbridge uses client team workshops to identify opportunities for acquisitions, joint ventures or strategic partnerships that match the company's goals and objectives, resources and capabilities.  Workshops allow us to assist our clients to:

bulletset realistic, internally consistent goals and objectives for acquisitions, joint ventures and/or strategic partnerships
bulletdevelop a useful set of criteria for evaluating opportunities
bulletcreatively examine in an interactive process the client's environment, resources, capabilities and technology base to identify opportunities
bulletprofile and screen opportunities thoroughly
bulletdevelop an imaginative approach and implementation strategy and plan
bulletimplement the plan effectively and efficiently

As a result of many years of experience in working with clients to accomplish such programs the Winbridge team has identified the major barriers that clients encounter during the implementation program.  We have developed ways to avoid or overcome the pitfalls and increase significantly the chances for success.

Program to Improve Shareholder Value Prior to a Divestment

Prior to divesting an operation, it is important for management to maximize the shareholders' value by preparing the unit for sale.  Winbridge conducts a pre-due diligence audit of the Unit using the same approaches followed by a potential acquirer.  The purpose of the pre-due diligence audit is to identify the key elements that determine the value of the Unit and to develop an Action Program for management to maximize the value prior to the sale.

There are a wide range of possibilities for Action Programs:

bulleta re-focus of the Unit Strategy to take better advantage of opportunities presented by changes in the business environment;
bulletre-positioning of the operation to improve efficiency, lower costs and improve cash flow;
bulletre-directing the marketing program to target higher potential opportunities or resolve weaknesses in the current approach;
bulletre-organize one or more functions to improve the implementation of the chosen course of action.

As a result of the pre-due diligence audit, Winbridge develops a range of values for the operation using financial models of the operations cash flow forecasts.  These include a range of values prior to the suggested changes and then another range to reflect the probable impact on valuation as result of implementing the Action Program.  Such an effort pays significant dividends to the shareholders by preparing the management and the operations for dealing with the potential acquirers and obtaining the best possible price for the business unit.

Divestment Assistance

The Winbridge Group, Inc. works with our clients effectively and efficiently  to divest their companies, or a particular businesses within their companies.   Our process consists of six steps:

bulletWe agree with the Board of Directors on a reasonable value for the business.  The valuation is based on the financial performance of the business as well as its growth expectations, its competitive position and the market conditions for the sale of similar businesses.   The agreement on the potential value of the business positions Winbridge and the Board to deal effectively with potential acquirers.
bulletWinbridge then generates an Offering Memorandum.  This Confidential document describes the business in detail, presents its outlook from Management's point of view and outlines the Sale process.
bulletWinbridge, in conjunction with the Management of the business, identifies the list of likely Strategic buyers.   The focus is on Strategic buyers since these companies are usually willing to pay a premium over the pure financial worth of the business.   Winbridge then undertakes the direct contact of these Strategic buyers and solicits their interest in making the acquisition.  For qualified, potential acquirers,  the Offering Memorandum is provided once a Confidentiality Agreement has been signed.
bulletThe qualified, potential acquirers are then invited to view the operations in person.   They are given a presentation that summarizes the Offering Memorandum and allowed to ask clarifying questions.  Next, they are given a tour of the operations and introduced to the key people in the organization.
bulletAfter this meeting, those potential acquirers who maintain an interest are requested to provide a Letter of Intent which includes the price they are willing to pay for the business.   These letters are evaluated and one company is selected for a limited time, exclusive opportunity to conduct their due diligence and reach a definitive agreement to purchase the business.
bulletThe due diligence process allows the buyer the opportunity to obtain detailed information on the business which confirms the information provided in the Offering Memorandum.  At the conclusion of this process, the Purchase and Sale agreement is negotiated and signed.  The closing then follows.

Our Press Releases outline a number of recent, successful transactions completed by The Winbridge Group, Inc.

Valuations

There are many times when a company may need to establish the value of a business unit; prior to divestment, before going public with an IPO, for a minority buyout, etc.  The Winbridge Group, Inc.  has conducted numerous valuations for such purposes.

To develop a valuation, Winbridge:

bulletuses an extensive and intensive, internal and external research program to generate an integrated set  of assumptions for the economy, the industry and the business units market share in that industry;  the result is an Optimum, Pessimistic and Most Likely set of projections for the business unit's revenue over the next five years;
bulletuses historical financial performance data of the company to construct a computer based model that generates forecasted free cash flow as well as a complete set of proforma financial statements;
bulletexplores and evaluates a range of financial futures with the revenue forecasts and the computer model;
bulletuses a number of techniques, such as the Capital Asset Pricing Model, and the latest relevant transaction data that is available, to develop a valuation based on the discounted cash flows projected for the business under the various, deterministic scenarios;  we may also employ a Monte Carlo simulation approach to obtain similar information but with a stochastic process;
bulletcorrelates the valuation results with a number of conventional valuation methodologies including P/E, Book Value, liquidation value, P/EBIT, etc. and reaches a judgment about a reasonable range of values for the business unit.

This analysis and information is provided by Winbridge to management in a form that is appropriate for use with the Board of Directors.

Commercialization of Technology

Billions of dollars have been spent by the U.S. government on developing a broad range of technologies for space and defense applications.  Much of this technology has been later applied to industrial and commercial applications.  Winbridge works with companies in the defense industry to bring this technology effectively and efficiently to commercial markets. The principals of Winbridge have worked with defense companies on such projects since the early seventies.  Two national surveys of the U.S. defense industry were co-sponsored by Winbridge (along with KPMG Peat Marwick and DRI/McGraw-Hill).  These surveys showed that there is a considerable amount of success in such projects, to the benefit of both the defense companies and their industrial/commercial partners.

A set of Key Success Factors emerged out of the Winbridge experience and were confirmed by the National Surveys.  This experience and the Key Success Factors have been recorded in various forms and are available form The Winbridge Group, Inc. (please ask for a copy on the Feedback page). 

The same set of skills used to assist firms in the Defense Industry with commercialization of technology have been applied to working with Industrial and Healthcare companies.  Bringing technology to the market can be a challenge for many companies, especially when the opportunity presented is in an industry that is not familiar to management.

 

 

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Last modified: October 25, 2013