Philosophy: We at merchantbanker.ca believe that the technology and manufacturing industry will continue to use replacement, displacement and disruptive technologies to keep companies connected, while changing most of the ways that business will be done now, and in the future. We believe the Independent Review develops an understanding of an Ecosystem Mapping processes that will solve growth problems and drive strategic growth initiatives.
Proposition: We enable value-added business relationships that capture markets (new clients, source opportunities), improve sales performance (sell more, close faster) and increase financial value (aggressive growth, planned strategy), solutions explicitly guided by our Independent Review and Ecosystem Mapping processes. Our collaborative resources help your organization to evaluate business problem, and to share in the transformation solution for a measured result.
Profitability: First, rather than focusing on top-line revenue, we believe the Firm of the Future must focus on the profitability of each and every client. Not all customers are created equal, and many firms could stand to lose up to 40 to 60 percent of their clients. Not surprisingly, they are usually much more profitable when they do so.
Almost every firm will immediately agree with the Pareto Principle, that as few as 20 percent of their customers often produce as much as 80 percent of their revenues. Few firms have understood what this means if one applies this concept through to their bottom line. Studies continue to show that 20 percent of most firms’ customers usually produce anywhere from 150 to 225 percent of their profits. This obviously means that a lot of businesses are losing money on the bottom 80 percent. If they could figure out a way to break-even on this bottom 80 percent, they would increase their profits from 150 to 225 percent.
Process: Second, merchantbanker.ca recognizes that a client organization does not buy hours. We create and sell, and our customers buy access to and/or the transfer of knowledge, not time. This is a far broader view than thinking about leveraging people and hours. It is about an organization leveraging the collective knowledge of its people internally and externally.
A firm’s knowledge or intellectual capital consists of three components: human capital (people), structural capital (systems, proprietary software, check list, resources, and so on that enable it to perform its work), and social capital (customers, vendors, suppliers, referral sources, alumni, alliances, and more). These components are the real levers of profitability in any firm, not people hours. One cannot leverage an hour; time is simply time, and all businesses (indeed, all living beings) are constrained by it. So what?
There are so many more ways to leverage the three components of intellectual capital, but it requires a radical, brute-force change of mindset to get away from the notion that our billable hours drive a firm’s profitability and capital management.
Professionalism: Third, for merchantbanker.ca, the Firm of the Future focuses on effectiveness, not efficiency. There is not much the average firm can do to squeeze 15 to 20 percent efficiency from its human capital, since they are fallible human beings. The focus on billable hours has hindered professionals from focusing on being effective for their customers and clients.
In surveys of how customers and clients select or why they fire their professionals, lack of efficiency is never mentioned. It is always because of behaviors such as: outstanding service and/or lack of service; great knowledge or lack thereof; issues such as: they don’t ignore me; they are proactive in looking after my interests; or they are aggressive in helping me pursue opportunities. One cannot do all of these things if focused on billable hour quotas.
The merchantbanker.ca network develops relationships using our progressive compensation model of daily rate, participation equity and commission structure to focus trust and achieve success for growth-oriented plans and exit strategies.
Provision: Merchant Banker in the corporate development role transitions technology companies for growth using our independent review and financial analysis process. We grow valuation, through a shared solution; including but not limited to funding, partner alliances, management consulting, relationship development, corporate acquisitions, capacity planning, budget forecasting, strategic initiatives and business integration. We increase revenue, improve margin, and maximize profit as a measured result.
With our focus on providing business strategies, financial advice and underwrite acquisitions for corporations, while supporting owners and operators, typically with respect to their unregistered securities and shares in their privately held companies. We find and invest capital in client companies and provide a per diem and fee-based advice services for mergers and acquisitions, among other valuation services we take care of the needs for commercial, global finance, stock underwriting, and long-term company loans and through private equity where securities of a company are not available for public trading.
Of the most common private equity investment strategies, we include access to venture capital, leveraged buyouts, distressed investments, growth capital, and mezzanine capital, convertible debentures, participation equity and leveraged buyouts when necessary to generally obtaining control over existing or mature firms.
Pricing: The per-diem model is based on a combination of a daily fee of two thousand dollars a day and performance compensation.
Progressive: Compensation is based on a shared solution and a measured result with formula for success based on: Capital x Effectiveness x Price x Management x Revenue Increasing x Margin Improvement x Profit Maximization.
Projection: Finally, the Firm of the Future proves effectiveness by monitoring and managing a successful business model for growth based on shared solutions and measured results. Financial and business success is defined in the beginning and then ongoing engagement and efforts are made to solve customer growth problems.
The merchantbanker.ca team capabilities and ability extend to meeting stated objectives and goals through our combination of corporate development, business funding, client financing, organizational optimization, sales performance, process improvement, industry relationships, transaction procedure, company resources, corporate sourcing and outsource programs.