Exodus offers two services to improve working capital efficiency – Analysis and Execution.

Return On Working Capital Analysis

Return on Working Capital (ROWC) is an in-depth financial analysis that calculates yield on working capital, and recommends specific working capital reallocations. ROWC Analysis produces two deliverables - ROWC Statement and reallocation recommendations.

Since every business is in the meta-business of acquiring and retaining customers, knowing yield on working capital per each customer acquisition/retention activity is crucial to efficient working capital allocations. Standard financial statements (Income Statement, Cash Flow, Balance Sheet) do not provide insight on how efficiently working capital is being deployed, and do not allow to calculate yields on each activity.

Return on Working Capital (ROWC) Statement shows:
(1) Customer acquisition cost, average order size, order frequency, and lifetime value.
(2) Customer retention costs.
(3) Yields per each customer acquisition and retention activity.

ROWC Statement allows investors and managers to have a clear picture of customer economics and how working capital is currently being spent on customer acquisition and retention. Knowing yields allows to reallocate working capital to activities with higher yields, and employ working capital in ways that result in higher EBITDA. ROWC statement is a tool for making operational decisions that maximize efficiency of working capital and EBITDA.

ROWC Analysis takes about 60 days. We deliver ROWC Statement, our recommendations on specific working capital reallocations, customer acquisition tactics, and EBITDA improvements that can often be overlooked. Our recommendations require little or no new investment in the company, and have rapid impact with tangible results visible within 6-12 months.

We tie our compensation directly to the new cash flow we uncover, and guarantee our work. If our Analysis doesn’t uncover new cash flow that would cover our fee at least two times over – we refund your money.

Execution Services

If your are on a tight timeline, or your management team is unable to dedicate the resources necessary to implement working capital reallocations, then Exodus' Execution Services may be right for your company. When Exodus decides to undertake an Execution project, we assign a dedicated team of working capital experts to harvest latent value and increase EBITDA in your company. This reduces the workload on your management team, who will likely already have their hands full running your daily operations.

Exodus will implement operational changes necessary to achieve higher return on working capital. Exodus will strengthen business activities that generate higher yields by making processes within them replicable. Exodus will work with business functions within which new cash flow opportunities were uncovered to ensure that operational changes are repeatable and lasting.

If we both decide Exodus should implement the recommendations discovered in Return On Working Capital Analysis, we will agree on a monthly retainer and success fee for our services and get right to work.

We tie our compensation directly to cash flow we generate, and guarantee our work. Our Execution Service success fee gets paid out of new cash flow we deliver. If we do not generate new cash flow equal to or greater than our retainer – we refund your money.