The KANE Process - Micro: It's all about "Value Elements;" Macro: It's about exploiting 30 years of paying attention to what works, and doesn't.
Purchase Price (PP) = Profitability/Growth (P/G) X Capital Market Trading Multiple (TM)
If P/G is the fuel flow that increases engine speed (PP), TM are all of the performance enhancements (like a Turbo-Charger) that make the engine go faster (increase PP) at any rate of fuel flow.
Holding the trading multiple (TM) constant, any increase in your business productivity (P/G) measure increases your Purchase Price linearly. Holding your P/G constant, increasing your TM increases your Purchase Price geometrically.
Kane works with you on both (P/G and TM) to increase your realizable value in any sale of your business or securities. Together we will make the greatest incremental gains in PP by making a rational case for increasing your multiple (TM).
KANE, the Investment Bank, knows how to identify and prioritize the Value Elements in your industry rewarded with higher TMs; how to express your Value Story in terms of the most-rewarded Value Elements and how to design, engineer and manage the execution of the transactions that yield the highest obtainable purchase prices overall. You engage KANE, the Investment Bank when you are satisfied that you have optimized your P/G and TM, or you otherwise run out of time, money or the inclination to prepare to further improve your potential outcome.
If you DO have the resources, energy and the luxury of 6 to 12 months to prepare, then you will want KANE, the Strategic Financial Consultant and KANE the Systems Consultant to do their thing.
KANE, the Strategic Financial Consultant, increases geometrically (much more powerfully) your recognized equity value in a sale by persuading prospective buyers rationally to increase the TM they will apply to you - by helping you to align the structure and operations of your business (reality) to better conform with the ideal Value Story.
KANE, the Systems Consultant, increases linearly your recognized equity value in a sale by emplacing Value Story-supporting, valid, visible and clear measures of P/G, and improving your processes to make them more efficient on the dimensions of P/G commanding the highest TM.
The KANE Process - Macro: Exploiting 30 Years' of Paying Attention to What Works, and Doesn't
We have distilled some approaches and philosophies to serving our clients better that derive from three decades of alert, engaged observation of the investment banking, legal, accounting and strategic business aspects of the world of M&A. Knowing what we know, seeing what we have seen, we offer you what we would want our investment banker to bring to the table. Some examples:
Active Selling. Meeting all of the seller’s objectives, including especially finding and closing on the highest obtainable price, requires active selling. Doing so takes industry competence, diligent digging and creativity to find and accurately describe all of the value locked in the business. It does not work to issue a “one-size-fits-all” descriptive memorandum, slap a big brand name on it, sit passively and wait for incoming orders. To succeed as you would wish us to, we need to take charge, and that is what we do. We deploy senior people, with broader and deeper skill sets, more experienced, better organized, to lead and collaborate with our staff and yours every step of the way. Active selling is the only reliable way to sell a business at the optimal price.
Seniority is Everything. The senior KANE & COMPANY staff you meet in the initial meeting are the same professionals who will execute your assignment. While the large firms may relegate your work to mid-level (and lower) personnel, we deliver a working team of seasoned professionals, most often with the breadth and depth of experience greater than that of any other team you will meet or interview.
We Staff for You. Every business is different, thus transactions, particularly M&A transactions, can be unique as to subject matter. We pride ourselves in our ability to customize the perfect team for your assignment, rather than force a predetermined staff to meet a new challenge. Because jobs can vary across a wide range of sectors, we draw upon industry experts we trust as to competency and discretion to complement our team. After three decades of service to clients across the world, at Kane & Company, we can look outside our current ranks to augment our team when beneficial to you, affording an advantage you will not find at the big firms. We don’t claim to know it all; we claim to be extraordinarily resourceful problem solvers. After all this time, what we don’t know, we know how to find out.
Unrivaled Access to Information. Just like the full-service investment houses, KANE & COMPANY is qualified and authorized to execute M&A, Capital Markets and Underwriting functions. But there’s a difference: we don’t have internal sales, trading, research and asset management departments that we are forced to utilize; that is, in these areas, we are sources of business for – not competitors with – the giant investment banks. As a result, we can access, pool, synthesize and provide you with the research capabilities relevant to your transaction from the major investment banking firms, not just the knowledge of a single, captive department.
Disciplined Discretion. If your information goes into Kane & Company, you can rely on it not coming out, except in ways planned for selected audiences at particular times. We are extraordinarily good at keeping the lid on what you are doing and what we are doing for you. In addition to our own discipline, we have a structural advantage as a firm in that we have no “market facing” departments such as stock brokerage, trading, securities research or asset management. Our currency is information, but we just use it for you to achieve your purposes.
Registered Securities Broker/Dealer for nearly 3 decades, yet structurally independent. We enjoy a distinct advantage over the giant investment banks. Since we do not engage in securities sales, trading, research or asset management, we do not operate any divisions that could be in a conflicting business relationship with your potential counter-party. We offer all the market intelligence gathering and execution advantages of a Wall Street firm with much fewer potential challenges to our independence and un-conflicted representation of your interests.