 |
NEWS CLIPPINGS...
|
CP Software Group Announces Value Lift Program
|
Folsom, California- CP Software Group, a private equity venture development firm, announced an innovative investment program for owners of small internet businesses designed to increase the value of their business without cost to the owner. The Value Lift program provides capital and business services in anticipation of profit growth and increased equity value.
"There are literally thousands of small businesses for sale today," stated David Saykally, the CEO of CP Software Group. "Many are internet-based, operated by a single owner or a small staff, many working from home. The owner may not have the capital to continue to grow the business or may just be tired of the effort it takes to operate these businesses. They look for help but the cost of investment capital and business assistance is very high. Some try to sell out but find it an awful time to market a company. We think our Value Lift concept might be an answer."
Karan Eriksson who heads strategic marketing at CP described Value Lift as a business development investment that is paid for by growth. "We have found some very nice companies that could achieve dramatic growth with a little more capital and capabilities. Under Value Lift, we agree a valuation and cash flow baseline that fairly represents the current company. This value belongs to the owner. CP then invests skill and capital to grow beyond this baseline and shares in the growth. Its a risk free, cost free way to lift the value of the business."
Eriksson cited an example that CP is currently working on. "We found an owner in the florist trade who had demonstrated an innovative approach to targeting male purchasers. Unfortunately, the owner didn't have the technical skills or staff to fully implement the idea. CP does. We are creating a clever website and will launch in the fall. The owner keeps the value of the current business and we will make a return when the new program succeeds."
According to Saykally, "we feel this is an win-win approach to business incubation. We get to match our skills to the deep industry expertise of the business owner. We expect the results to be profit growth and a dramatic increase in the value of the company. The market for acquisitions will improve over time and these businesses will be well positioned to exit with a much higher valuation."
|
|
|
|
