Our work is based on extensive analysis of companies’ addressable market(s), management, and business operations supported by an in-depth understanding of the quality of recurring revenues and cash flow, variability of costs and the value of the enterprise as a whole, including proprietary intangible assets and intellectual property.
A key part of Ecosa’s approach is working closely with businesses to provide essential guidance and expertise before an investment is made in order to ensure that the business can make efficient use of capital employed. This approach will continue after an investment is made to help the Fund’s portfolio companies execute their strategic plans. Ecosa’s team and network of advisors have the background and experience to provide each Fund client relationship with the technical and managerial assistance, as needed, in order to increase the likelihood of profitable outcomes.
We consult carefully with management prior to making investment decisions and recommendations. Many companies that are in a rapid growth phase are transitioning from an entrepreneurial management team to a professional one and hence, lack the depth or experience required for scaling a business. As a result, some entrepreneurs may not have outlined a coherent plan, tied the plan to a well-vetted and researched vision, or created a business model to permit a critical assessment of their assumptions and to analyze the impact of different scenarios. Such a planning exercise is an opportunity to evaluate business risk, perform due diligence and foster a solid working relationship based on trust and respect.
We provide significant managerial and technical assistance to companies including participating in board and management meetings, making introductions to potential customers and suppliers, consulting with and advising company officers, marketing help, recruiting top management, arranging new financings, strategic planning, workforce development, and providing other product, organizational, and financial guidance.
Ecosa continues to monitor and work closely with its clients’ management teams to ensure each is maximizing its opportunities and managing risk effectively. Over time, economic cycles and other external factors will likely come into play and present unfavorable market conditions that were not forecasted or anticipated. Successful companies will develop strategies to manage these unforeseen events and Ecosa prefers to take an active and constructive role in helping companies develop approaches to mitigate such risks.