HISTORY - Venture Associates was founded in 1982 as a traditional venture capital firm with an emphasis on financing small public companies. It has evolved into an investment banking and management consulting firm with a focus on capital sourcing. Today, it retains capabilities in these areas with additional strengths in a broad range of management and emerging company consulting. The firm is based on the principle of providing a high level of professional services with an orientation to results.
ASSOCIATES - Twenty five plus years of business oriented networking has enabled Venture Associates to assemble a variety of knowledgeable, hands-on, experienced individuals who cross over a broad range of management disciplines. Experts and specialists are accessible for almost any business or industry need from determining the validity of a concept to going public, selling out or merging. Associates’ are oriented to provide solutions to problems and uncover opportunities.
PRINCIPAL BACKGROUND - Jim Arkebauer, who founded Venture Associates in 1982, has been entrepreneuring for 35 years in many types of industries ranging from retailing and manufacturing to public company formation and management. He has been instrumental in founding dozens of companies, assisted over 40 in going public, and has been reviewing over 500 business plans yearly for the past 25 years. He is involved in risk analysis and the evaluation of many new technologies, assembling management teams, and structuring and implementing debt and equity placements.
He is a co-founder and Chairman of the Board of the Rockies Venture Club, one of the countries top entrepreneurial support and networking groups. He is a frequent speaker to civic and educational groups on the subjects of entrepreneurship, going public, business planning and financing, His firm is listed in numerous directories and he has been listed in "Who’s Who in Finance and Industry," "Who’s Who in the West," and "Who’s Who in the World." and was the 2010 recipient of the Pearsall Award for Lifetime Entrepreneurial Achievement
His experience and entrepreneurial exposure has enabled him to author eight business BOOKS -- which combined -- cover the entrepreneurial adventure from the writing of business plans to leading high-growth enterprises and taking companies public. (More Bio Info).
FLEXIBLE COMPENSATION - Venture Associates compensation schedule is in line with industry standards and each transaction is negotiated on an individual basis. All fees are defined prior to initiating any task. The firm is pleased to quote firm fees for specific projects, nominal fees for consulting, and propose agreements for longer-term endeavors.
We believe that too much advice can be as bad as not enough and fully understand the need for CEOs and management teams to have time to implement advice. Simple agreements describing the responsibilities of both parties are our norm.
OUR MAIN ACTIVITES
Venture Associates focuses on providing consulting and financing services to entrepreneurs. Our primary services include:
The following section identifies some of the "once-in-a-lifetime" events that entrepreneurs may face in growing their companies and how Venture Associates assists them in facing the challenges. These events include:
Venture Associates considers these organizational opportunities to be the types of events that most companies may experience infrequently. Aggressive companies recognize the need to bring in experienced consultants to compliment their capabilities in successfully carrying out these usually "once in the life of a company" tasks.
Seeking merger or acquisition candidates first requires an assessment of a company's own financial and management abilities to participate in such an undertaking. It also requires the development of specific criteria which will help in identifying target companies. This includes size, industry, market performance characteristics, geographic locations, management experience and other parameters.
A key ingredient is a clear understanding of the financial resources needed or available to structure and then implement the transaction. This requires the development of a purchase and operating structure customized for each transaction.Once a target is identified, we assist in analyzing and developing the performance criteria to be expected after the transaction. This, plus the key point of considering management team compatibility, minimizes misunderstandings between the buyer and management teams.
As your company consultant or representative, we can:
Identify appropriate buyers and sellers and potential merger or acquisition candidates, including those in our extensive database.
Structure the transaction to buy or sell a business.
Serve as a financial advisor in developing the transaction.
Value the securities in connection with the transaction.
Assist in properly positioning both buyers and sellers.
Years of experience have shown us that many times, an existing company will have diverted or evolved from its original primary business. Frequently, they have continued to operate a division which today distracts from their primary endeavors. This can call for a divestiture, frequently to the personnel who are currently operating the division.
Divisional divestitures, while retaining equity and on-going supplier relationships, is a growing trend with "Open Book" companies. This action frees up capital for more appropriate uses and management time to instigate new growth opportunities.
Many smart companies today are banding together in an effort to offer their customers more and better services and products with increased efficiencies. This creation of strategic alliances and corporate partnering don't just involve financing.
Strategic alliances may also include making available technical services, technical resources, marketing services, production facilities, distribution capabilities and other business management services. The good part of this for the smaller company, besides the non-financial benefits, is an alliance with deep pockets which can be good for several rounds of financing. The downside can be a changing of focus and objectives of the larger partner which leaves the smaller company hanging in the wind. Venture Associate offers numerous considerations to avoid entering into deals that may jeopardize partnerships as well as assisting companies in sourcing and identifying compatible opportunities.
The concept has been around for 40 or 50 years and in the extreme was called "bootstrap acquisitions." Today, it is better known as leveraged buy-outs. In practice, it is asset based lending where a company's existing asset base is used to support the lending used to buy it out. Every penny is needed to support operations and expansion and asset based loans aren't paid back until the company stabilizes or arranges for other capital bases.
Reorganizations can take several forms. They may be to accommodate a recapitalization to permit distributions to shareholders, or may be used to allow for new equity participation. Frequently, they are to refinance or restructure existing bank loans or recapitalize a company to position it to attack new markets. Sometimes, reorganizations are needed simply to survive.
Reorganizations, for both financial or management purposes are an infrequent corporate event. Venture Associates has participated in this type of activity many times and brings hands-on experience to the project.
Managing for successful turnaround profitability requires close monitoring of profit margins and conservative yet realistic budgeting. In many cases, it's the extreme of crisis conditions which calls for action-oriented executives with implementation experience. Profit follows efficiency, and efficiency requires the right personnel in top managerial positions. The unforgiving needs are to stop losses and build profits, to grow the income stream, grow the cash flow, and grow the concept. This requires turnaround analysis and hands-on implementation expertise to maximize returns to shareholders and minimize risk to lenders.
Early symptoms of a business crisis are:
heavy losses
growth slower than competition
loss of key personnel
decline in market share
depletion of cash reserves
product or service shipment delays
development behind schedule
customer complaints
concerns about management's ability to reverse these trends
Evaluations are frequently confused with business valuations (we do these also). Evaluations can be likened to a tune up for your car. They take the form of a "check-up," often at predetermined intervals, to assess the company, its operations, management team and efficiencies. Venture Associates also performs evaluations for specific purposes such as when a company is contemplating capital acquisitions.
Over the years, we have developed an extensive network of associates and consultants. With expertise in, but not limited to: legal, accounting, technical, appraisal, business plans, and in-house specialty consulting, this expertise can be tapped on a case by case basis. We also frequently use their contacts to fulfil board of director or advisory team searches and placements.
Venture Associates seeks to develop relationships with clients who can benefit from our ongoing management expertise, insight and financial know-how. The financial and management requirements of a successful business are continuous. Good performance requires more and better management. Growth demands increased capital. Financial needs and management controls must be constantly monitored as a business evolves. Planning must include viable alternatives and contingencies for various alternatives. Venture Associates delivers continual evaluation and direction to sustain both the short-term and long-term requirements of a company's development.
OUR CONFIDENTIAL COUNSEL OFFERS
A rapidly gained, reasonably thorough understanding of the business in order to put problems and opportunities in perspective.
Additional perspectives gained by experience in a variety of industries and businesses, which can be used to advantage in solving the problems of many other enterprises.
A sounding board for the CEO/Owner and top management team members in expression of problems or planned actions, offering constructive advice in decision making.
Objective review of company performance, gained through regular analysis of financial and operating performance.
Confidential and objective advice for a company with no outside board of directors or when family members or shareholders may have conflicts of interest.
Second opinions when a CEO has doubts about programs that are proposed by other top management team members.
PRINCIPAL BACKGROUND - Jim Arkebauer, who founded Venture Associates in 1982, has been entrepreneuring for 35 years in many types of industries ranging from retailing and manufacturing to public company formation and management. He has been instrumental in founding dozens of companies, assisted over 40 in going public, and has been reviewing over 500 business plans yearly for the past 25 years. He is involved in risk analysis and the evaluation of many new technologies, assembling management teams, and structuring and implementing debt and equity placements.
