acquisition

“Wellness” in a Physician’s Practice — What does it look like?

I’ve become convinced that an ever growing % of the population is ready to pay for “wellness” as part of their medical care. Why? Over the past few years, deductibles & co-pays have skyrocketed. People are paying more out of pocket and getting the same or less healthcare. What if people could pay what they are now paying and get better healthcare? The baby boomers are healthier & more interested in integrative medicine than ever before. If a quality alternative existed, I believe they would be attracted. So this is the question … What do you think would need to be part of a Wellness Practice. Some docs are promoting Wellness, but don’t act as the patients PC physician. I’m inclined to combine the two so a single physician directs my care. What’s included? Testing? Infusion? Vitamins? Hormone treatments? Nutrition? I’d like to hear from you — if you were starting with a blank sheet of paper to design an integrative wellness program, what specifically would be included? How would you charge for services in such a way that insurance would pay as much as possible? What would the real world model look like?

Raising Equity

5 Common Mistakes to Avoid When Raising Equity

Raising capital for a business, whether it is a start-up or a mature company, can be an extraordinarily frustrating and time consuming experience. Entrepreneurs want to operate and grow their business, not raise capital. But the fact is that for most businesses, the entrepreneur or CEO is responsible for raising capital. When attempting to raise capital, CEO’s very often make some crucial mistakes. These mistakes not only can dictate whether or not the business will be able to raise capital, but also how long it will take and the ultimate cost of the capital. Using the wrong assumptions, raising capital can be impossible. We believe there are 5 common mistakes that CEO’s make when raising capital: 1. Unrealistic Expectations of Value Most of us has watched Shark Tank at least once. Just watch one episode and you will likely see this mistake. The entrepreneur goes to professional investors with a company that did $100,000 in sales last year and confidently tells the Sharks he will sell 10% of his business for $1 million. What’s the chance of this CEO getting funding? Zero. With few exceptions, investors will pay for what you have already done – not what you believe you …

No Growth to Doubling Revenue in 2 Years – Case Study

In October 2012, we began to advise a $12 million company that hadn’t grown in 5 years. It was a good company, producing about 15% EBITDA margins and well over $1 million annually in free cash flow. We had known the CEO for several years and knew he was about three years away from wanting to sell his business and retire. “How about if we double or triple your business before we sell it?”, I asked. He thought I was on some illegal substance – but not so. After talking further, we were retained to help him create a growth plan, to determine what capital was needed and to find the capital. Result? October 2014, LTM revenue is in excess of $23 million. By doubling revenues, margins have improved slightly, and the equity value of his business (he owns 100%) has more than tripled. CEOs – good CEOs – often get into the weeds of a business that the big picture is lost. This CEO didn’t think it was possible to grow his business – he was a “one armed paper hanger”. Sometimes growth just needs vision – and the right set of contacts. I’ve spent the last 23 years …

Q4 – 2014 : CEO … Time for Re-Evaluating & Preparation

The last quarter of 2014 has begun. This is the time of year for CEO’s to re-evaluate their businesses, goals & plans — not just for the balance of 2014, but also to get the business ready for 2015. I’ve been talking to quite a few private equity investors recently, and they continue to be amazed at the lack of preparation by so many companies that want to sell some or all of their business.  Most company CEOs do a great job knowing their business, and knowing what their business needs to succeed.  But far too often, the same high quality company CEO fails to understand or to prepare for an investor or strategic partner. As a CEO, if we were to walk into a customer’s office to try to sell our products or services, we would be well prepared to know what the customer is likely thinking … what the customer’s needs and desires are … how much they probably think our products or services are worth.  The CEO will know going into the meeting how to position his company, what to emphasize to the potential client and how to effectively sell the prospect. Why is it then that …

Villwock Advisory Services joins Axial

Villwock Advisory Services LLC announced that it has joined Axial as member in order to introduce our services to a broad base of lower middle market companies, and to the private equity and debt funds that provide capital to these companies. Axial is a network of over 16,000 companies, including investment banks, private equity, lenders and operating companies.  The platform has become “the place” for each of its constituencies to network with potential clients.  Companies use the site to find advisors, whether that be to raise capital, provide advisory services or investment banking services.  Bankers and advisors use Axial to market or test market transactions, and to attract new clients. Villwock Advisory Services works with middle market companies, private equity and debt funds in several ways: 1.  We partner with operating company CEOs to develop and implement a growth and exit plans.  As an example, we start working with a company in late 2012 that had plateaued at $12 million in sales for five consecutive years.  Less than two years later, the company is on track to produce over $24 million in revenue and EBITDA margins have improved.  The CEO’s equity value has tripled, and we are looking at strategic …