January 2021 Newsletter
Ready for an Exit?
CHV Group is not simply a broker and business intermediary. We also utilize our expertise and knowledge to help companies navigate and plan an optimal exit strategy when ownership wishes to properly evaluate or sell their business

Here are some situations in which we have helped or are currently helping businesses. 
CHV Client Example #1:
Husband & Wife Team Working on Exit Strategy
Currently we are working with a family business that wishes to sell. This particular husband-and-wife team run an innovative operation within the industry of Food manufacturing and processing. They have run into some issues when it comes to growing their company without having to borrow or seek outside investment. 

In one specific instance, they were unable to get a deal done with the investors on the hit TV show “Shark Tank”. Despite being profitable for the owners, this company has not quite had the resources to approach their exit strategy with confidence. After reviewing their operations, it was clear that resources needed to shift towards growing the business before they could realistically sell. 

The Solution

  • We added a cost neutral custom manufacturer
  • Rearranged the current team to take on a sales and marketing focus
  • Installed a strong Enterprise Resource Planning system (ERP)
  • Enabled them to have Key Performance Indicators (KPI’s) at their fingertips
  • Directed personnel focus to make time for market research and marketing campaigns
The Outlook

The three year plan will have operations back under one roof, with a growth path that projects them to be doing two to five million in sales and improving net margins. 
CHV Client Example #2:
Adhesive Manufacturer
In the past, we have worked with an adhesive manufacturer owned by two partners. Within this arrangement, the sales and manufacturing are overseen by two sons of one of the partners. 

The operational aspects of the business were in the process of being reorganized when we first got involved, with the hope of making the bottom-line sustainable for the business. The problem was that they needed to stop spending money on introducing new products and instead focus on the marketing of existing products that were already profitable. 

The Solution

According to conventional wisdom and the common philosophies of other exit strategists, this business was an asset in value only. With this in mind, we took a more strategic, value based approach in seeking out an acquisition. Our efforts were rewarded with an international company that understood the value of integrating manufacturing and offering a premium on the sale.

Need Help Navigating?

Have you considered outside help for the trickier parts of owning or trying to exit your business? At CHV Group, we can be an integral part of your company, an additional set of eyes, and someone that’s willing to have the tough conversations when it pertains to your business. We have produced results in operational and top-line growth situations.
2021 Predictions
Most forecasts predict a 4-5% GDP growth for the upcoming year given the current economic state. It’s unclear what a potential recovery package or rumored tax changes will do but it’s unlikely that the proposed 1.9 trillion dollar package will have a stimulus effect. The best thing to do is be prepared for multiple scenarios. If you have planned an exit, 2021 may be a good year to avoid the higher burden on taxes that are liable to come in 2022. 
Food for Thought: January 2021
CHV Group LLC| www.chvgroup.com