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First Things First ...Find & Harvest The Low Hanging Fruit
At Exodus Capital Advisors, our work centers around our proprietary methods for discovering and unlocking "Latent Enterprise Value" from almost any company in almost any industry. As Exodus defines it, “latent value” is any increase in a company’s valuation resulting from an increase in the company’s cash flow or earnings multiplier which can be realized within 18 months without a significant investment of capital.
The easiest way to impact a company’s valuation is to increase its cash flow. This can be done by either increasing revenue or decreasing expenses. Since there is only so far you can cut expenses before you hurt revenue, Exodus focuses the majority of its work on growing revenue through a series of tested techniques for systematically increasing client acquisition, retention and order growth.
However, growing a company typically requires capital. While it is easier to grow a company by selling equity or borrow money, both of these strategies dilute shareholder value, thereby increasing risk. The far more difficult, but highly profitable route, is to grow a company by maximizing the internal cash flow it generates. This is precisely what Exodus helps its clients to do. Only when internal cash flow has been optimized can business owners feel good about diluting the value of their shares by bringing in outside sources of capital.
Most business owners claim they don't have any money in their budget for new programs. In reality, every company has a budget to effect change because every company is already making a series of investments toward its current overhead and client acquisition costs. What they really lack is expertise, not money. Exodus specializes in identifying the existing low performing line items in your budget and replacing them with high performing ones. Almost like a mutual fund manager rebalances a stock portfolio, Exodus helps its clients to maximize the return they are getting on the “investments” they are already making each day.
We typically find that there are many great opportunities to increase cash flow simply by reallocating existing expenses based on the returns they generate for the business, but this is truly just the beginning. Exodus has an entire Enterprise Value Engineering model which systematically details how to build the value of almost any company. To learn more, please explore this website further, or call us toll-free at (888)EBITDA-1. We will gladly walk you through our model in person.


