Whether preparing to raise funds or the eventual sale of your company – always be ready for the due diligence process.

Why wait for a funding event or a possible sale of your company to prepare for due diligence. The due diligence process can be time consuming. By being prepared in advance your business can be well positioned for the process. Today there are cost effective sites you can use to create a data room to house your due diligence materials.

The key documents you can gather in advance are the following:

• Key contracts
• Employment agreements
• Minutes and consents of the board of directors and
• Confidentiality and invention assignment agreements with
• Corporate charter and bylaws
• Patents, copyrights, and other intellectual property related Tax
• Financial and marketing plans

How can Evergreen CFO Services help?
We provide experienced talent to address the challenges faced by emerging businesses on an outsourced, part-time basis. Our staff typically works one or more days per week on site, which positions us to immediately address pressing financial concerns, mentor staff, and help you make critical decisions.

Mark Gretz is a Vice President with Evergreen’s CFO Advisory practice and he can be reached by calling 410-997-6000 x234 or e-mailing him at mgretz@evergreenadvisorsllc.com

There are many options available if you are looking to get your business valued. A simple online search for “business valuation Chicago” will find you a local valuation expert, but what approaches might they use? Well, there are three general approaches that are considered to determine the value of a business. The conventional approaches include the cost, income and market comparison approaches, or a combination of the three. These approaches can be summarized as follows:

In the Cost Approach, the aggregate value of the company’s assets is netted against the estimated value of all existing and potential liabilities, resulting in an indication of the value of the business enterprise. The resulting indication of value often represents a minimum, or floor value that a company may reasonably expect to realize, often through the liquidation of its assets.

The Income Approach considers expected returns on an investment, which are then discounted or capitalized at an appropriate rate of return to reflect the risks and potential rewards associated therewith. These valuation methods include (1) Discounted Cash Flow and (2) Capitalization of Income. These methodologies focus on the income-producing capability of the business enterprise.

Two commonly-used methodologies for business appraisals in the Market Comparison Approach are (1) the Guideline Public Company method, which focuses on comparing the subject company’s risk profile and growth prospects to select reasonably similar (or “guideline”) publicly-traded companies and (2) the Guideline Merged and Acquired Companies method, where consideration is given to pricing multiples in recent merger and acquisition transactions that have occurred in the subject company’s industry or in related industries.

There exists additional valuation methods within each of the above valuation approaches. The specific valuation techniques used in a valuation engagement depend on the facts and circumstances specific to each case, including the nature and characteristics of the business enterprise being valued, and the purpose of the business appraisal.

To discuss which approach or combination of approaches is appropriate for your business or our business valuation services, contact Greg Huff at 410-997-6000.

Evergreen Advisors CEO Rick Kohr appeared on Executive Leaders Radio on March 3, 2011.  Rick shared the founding of Evergreen Advisors and that  “it is fascinating because it’s not in many businesses that you get to sit down with someone and really know their passion, vision, dreams, concerns, financial statements…you get to work on their dream.” Executive Leaders Radio is dedicated to honoring individuals who have risen to leadership roles through hard work and dedication.

Evergreen Advisors was ranked 6^th in the Baltimore Book of Lists recently-published 2011 list of Largest Management Consulting firms. More than 50 companies were surveyed for this list and the growth Evergreen has seen helped lift the firm to the top. Evergreen assisted 75 clients in 2010 with 46 being the in Baltimore Metro Area.

“We take great pride in being ranked in the BBJ’s “Book of Lists,” remarked Rick Kohr, CEO. “Helping business owners in our community Realize their Destiny is our mission. We want to help as many area companies as we can. “

About Evergreen Advisors [Read more…]

The biggest weakness we see in entrepreneurial businesses is a lack of access to high-level financial guidance when and where it is needed. At the end of the month, quarter, or year, it is all about the numbers. Revenue, costs, cash flow – all the issues that keep an entrepreneur up at night. In any high growth business, a solid finance function is an early key to success. Yet the cost for a full-time CFO may be out of reach for many early-stage companies. For many businesses, a part-time CFO or an outsourced CFO can be that key. This is where those looking to get into the bookkeeping and accounting game may choose to start. It cannot be easy to create a virtual bookkeeping firm, but there are always businesses searching for the right firm to assist with their finances. Equally, those starting accounting firms or are already in the midst of it may require help with workflow management, as firms can get extremely busy, making it difficult to keep track of deadlines and progress. You can find out more at JetPack Workflow for accountants looking to make their day-to-day work life easier.

The leadership through an outsourced CFO solution can make a difference in your long-term financial strategy. While an office manager or bookkeeper can assist you on a day-to-day basis, this strategy does not provide you emphasis on the overall organization. The CFO service provide you a foundation for success.

The challenges we find in all emerging businesses include:

[Read more…]

 

Evergreen Advisors announces that Rick Kohr, CEO was named to the 13 member Howard County Cyber Commission. The newly formed commission will advise Howard County Executive Ken Ulman to help maximize opportunities generated by the growth of cyber activity in the Baltimore-Washington region.

 “Rick’s financial expertise is a welcome addition, and makes what was already a strong commission even stronger.  Much of the Cyber Commission’s work will focus on regional business development and job creation, so Rick’s in depth knowledge of investment banking and corporate financing will be invaluable,” said County Executive Ken Ulman.

 Kohr brings a wealth of knowledge to the commission in business development.  He serves on the board of many local technology companies and is actively involved with area business incubators and other business development initiatives.  “It’s an honor to serve on the Howard County Cyber Commission,” said Kohr.  “I look forward to working with the talented people serving on the commission and making recommendations that will maximize opportunities for Howard County in cyber security technology.”

WASHINGTON, DC/BALTIMORE, MD – Evergreen Advisors’ client Pathsensors, Inc., an environmental testing company that manufactures pathogen identification systems is positioning itself for future growth. Recently spun-off from Rockville based Innovative Biosensors Inc. (IBI), Pathsensors is a leading edge biotech company focused on the food testing and biosecurity market. The company recently was awarded a $5 million contract from the Department of Defense.

Pathsensors will be relocating to the UMB Biopark, in Baltimore Md., and will utilize a recently completed equity offering for expansion of sales and marketing, automation of quality systems and new product development.

Pathsensors received an investment from the Chesapeake Emerging Opportunities Club, LLC, which is an early-stage private equity investment fund focused on promising emerging growth companies in the mid-Atlantic region.

“When Pathsensors looked for a financial advisor we turned to Evergreen Advisors. With LeadJig, financial advisors can use omnichannel marketing so the chances are you will have contact with a lot of different companies. We selected Evergreen for their strength in Biotechnology and their ability to understand our needs. With Evergreen we know that not only would they guide us through the process but also develop a lasting relationship with us.” _________________________________________________________

I recently spent part of an an afternoon with Paul Silber, a valued Advisory Board Member. It was a fascinating discussion as we talked about his business career and how he has been “filling his time” since selling In Vitro Technologies four years ago – MG

Dealing with “too much of a good thing”

In 1986, Paul’s first job was at Mary Kay Cosmetics in Dallas, Texas. A newly minted Ph.D., “I thought I’d probably join P&G, or Smith Kline”, Paul said, “but Mary Kay was offering me the opportunity to pursue my greatest interest, Toxicology”. As Paul explained to me, the simplest definition of Toxicology is dealing with too much of a good thing. Paul loved the work he did at Mary Kay, “I could kill a product if necessary and more than once was called to Mary Kay’s office to talk about the affect of one of the company’s products on her sensitive skin”.

Mary Kay turned out to be a great experience for Paul; he worked closely with the regulatory affairs group, marketing, operations, and represented Mary Kay in Washington with the industry groups. “This turned out to be a very critical period for both the cosmetic and pharmaceutical industries as we came under attack by the animal rights groups.” “My boss and I saw an opportunity to start our own company, where animals were not necessary for testing and we began to use test tube methods instead to determine how things would react.” The company they started was called In Vitro Alternatives, and the “aha” moment was when Revlon announced they were going to stop all animal testing. One early bump in his new entrepreneurial life was the partnership failing, “we split the company in half and I never looked back. In Vitro test tube tests changed the paradigm and an American success story was underway.

[Read more…]

The biggest weakness we see in entrepreneurial businesses is a lack of access to high-level financial guidance when and where it’s needed. At the end of the month, quarter or year, it’s all about the numbers. Revenue, costs, cash flow, all the issues that keep an entrepreneur up at night. In any high growth business, a solid finance function is an early key to success. Yet the cost for a full time CFO may be out of reach for many early stage companies. For many businesses an outsourced CFO can be that key.

The challenges we find in all emerging businesses include:

• Lacking the accounting skills necessary to make difficult or urgent decisions
• Spending too much time in the business and not enough on the business
• Need for executive-level expertise, but no cost justification for a full-time position
• Obtaining meaningful, timely, and accurate financial statements and management information
• Evaluating equity transactions and owner equity protection
• Developing key relationships: venture capitalists, bankers, auditors, lawyers
• Maintaining vital flow of financial information during employee turnover or leaves of absence
• Selecting and implementing accounting software

How can Evergreen CFO help?
We provide experienced talent to address the challenges faced by emerging businesses on an outsourced, part-time basis. Our staff typically works one or more days per week on site, which positions us to immediately address pressing financial concerns, mentor staff, and help you make critical decisions.

Mark Gretz is a Vice President with Evergreen’s CFO Services department and he can be reached by calling 410-997-6000 x234 or e-mailing him at mgretz@evergreenadvisorsllc.com.

“The battle of life is, in most cases, fought uphill; and to win it without a struggle is perhaps to win it without honor. If there were no difficulties there would be no success; if there were nothing to struggle for, there would be nothing to be achieved.”

 

Samuel Smiles, a Scottish author & reformer (1812-1904)

Quote is from his most famous book, Self-Help

On many fronts we’re excited to bring you our Fall issue of Evergreen News. As we were planning for it, it struck us that this past Summer should have been called “the Summer of Champions.” The NHL and NBA finals, the US Open, Wimbledon, World Cup, British Open, Tour de France . . . and more. Competing in sports and business has everything in common with building an organization, creating a culture, dealing with adversity and much more.

[Read more…]

Building Organizations, Creating a Culture & Dealing with Adversity

A brief snapshot of Chairman Mike Gill’s interview with John Schuerholz, President of the Atlanta Braves and
Bill Miller, Chairman of Legg Mason Capital Management

This is Mike Gill. I am the Chairman of Evergreen Advisors. I’m here with John Schuerholz and Bill Miller.

John Schuerholz is president of the Atlanta Braves and has been since 2007. He was GM for 17 years prior to the promotion to president. Prior to that, John was with the Kansas City Royals for 22 years, 9 as General Manager. John has been involved with three championship teams: the ‘85 Royals, ‘95 Braves, and our hometown Baltimore Orioles in 1966.

Bill Miller is Chairman and Chief Investment Officer of Legg Mason Capital Management. Bill co-managed the Legg Mason value trust fund since its inception. From 1991 to 2005, the value trust beat the S&P 500 15 consecutive years. Smart Money called Bill Miller among the top 30 most influential people in investing. Money magazine called Miller the greatest money manger of the 90’s.

I want to start this interview off with a Lou Holtz quote which I think is fitting because what brought us together was this incredible streak between 1991 and 2005 of two individuals in their respective industries. It might be fair to say that it won’t be topped again. But Lou Holtz said something along these lines, “I’ve been on the top, I’ve been on the bottom and I’m probably gonna be in both places again”. Let’s talk about the streak for just a couple of minutes.

{Mike Gill} Bill let’s talk about ‘91 to 2005. When all of a sudden did you say to yourself, “This is pretty interesting. What’s going on with our effectiveness with the value trust fund?”

[Read more…]

It’s been well over twenty years since Gregg Smith, a kid out of Westfield, NJ, was in the goal for St. Mary’s College of Southern Maryland’s lacrosse team. “It was,” Gregg said, “win or lose, I’m the goalie.” It was that experience and the lessons learned that launched Gregg onto an incredibly successful and exciting business career.

From the intense lightning-fast world of college lacrosse, things haven’t changed much for Gregg. He has executed transactions worth nearly a half billion dollars, including the sale of seven companies. I asked Gregg what are the most important things he’s learned in the fast paced world of an entrepreneur. He said, “I think my leadership philosophy really started to develop while playing lacrosse at St. Mary’s. Whether you’re the goalie or the CEO, leading by example, working hard, remembering that the team is the most important of part of success, are the most important attributes.”

A long time friend of Gregg’s, Francis Knott, Senior Vice President of Inflection Point Systems, said this about Gregg. “I know Gregg personally and professionally; he’s all about people, integrity, constant improvement, willing to get outside your comfort zone. People want to work for Gregg and they want to win.”

Rick Kohr, founder and CEO of Evergreen said about Gregg, “He was the first person we asked to join our advisory board. Gregg’s energy, ideas, constant challenge to our senior management team on how we might do things better, makes him invaluable to our board.”

The young kid from New Jersey with a lacrosse stick has come a long way. He has a beautiful nineteen year old daughter, Kelsey, and a legion of people who he has touched inside and outside the business world.

Mark is a Vice President in Evergreen’s CFO Advisory Services Group. He’s had a terrific career with over twenty years of operating and financial expertise in venture backed, closely held, and public companies.

“One of the things I like most about my work at Evergreen is helping growing companies work through their challenges,” Mark said. “Having worked in public accounting as well as the ‘real world’ of private companies, I’ve been there, I’ve seen the movie. Evergreen is a great environment to help early stage companies.”

Mark is a Catonsville native who attended Mt. St. Joe and then went onto Towson University where he received his degree in Accounting. “My dad was an engineer; that wasn’t my calling, but I did want to have a major where I could gain some specific knowledge. Accounting was the answer for me.”

Mark and his wife Mary Clare, and their three daughters, Amanda, Laura, and Olivia reside in Elkridge. He is a member of the Board of Directors of St. Augustine’s School in Elkridge as well as a member of the Maryland Association of CPA’s.

As Rick and I talked about our spring Newsletter, our thoughts kept bringing us back to “March Madness.” Sports metaphors and sports as a learning, growing, teaching experience energize us and encourage us to aspire to greatness.

At Evergreen, we love March Madness and what it represents. In this issue we’re going to do our best to “connect the dots” on the characteristics of March Madness and how we experience them everyday in our professional lives.

We’re especially excited about our “Guest Q & A” which will feature Head Coach Gary Williams of the University of Maryland Terrapins. Gary is an amazing person. He embodies all the characteristics of a Champion. He is a young “65” (March 4th). When the day comes and “Coach” has taken his suits to the dry cleaner for the final time, he will be praised and recognized as one of the greatest coaches in the history of college basketball. It’s been almost 40 years since Gary first cut down the net as head coach at Woodrow Wilson High School in Camden, NJ. It was his first head coaching job as he led the team to the state title and a perfect 27-0 season. Thanks, Coach.

[Read more…]

Our special guest for this March Madness edition of Evergreen News is Gary Williams, Head Basketball Coach for the University of Maryland Terrapins. As Gary prepared to take his team into the 2010 NCAA tournament, Mike Gill spoke with him about his experiences in such a compeitive environment. We hope you’ll enjoy the conversation.

Maryland’s Gary Williams is among the most successful basketball coaches in ACC history. Despite having one of the most animated and volatile sideline presences in college basketball, Williams has never received the full measure of appreciation his accomplishments merit.

Only two coaches in the ACC’s 57 years, North Carolina’s Dean Smith and Duke’s Mike Krzyzewski, have amassed more victories than Williams’ 202 in ACC competition. Now in his 21st season at College Park, he has 441 wins at Maryland, more than anyone in school history, and 648 career victories through March 11, 25th all-time among Division I coaches.

Williams, who turned 65 on March 4, is among seven ACC coaches who have won a national championship (in 2002) and among seven who have made repeat trips to the Final Four (2001, 2002). His team won an ACC Tournament in 2004, and he led the Terrapins to first-place league finishes in 1995, 2002 and 2010. His Maryland teams have won at least 19 games for 14 consecutive seasons.

Williams’ Maryland team fell just short of completing a comeback attempt against Michigan State which led to a second round exit during this year’s NCAA tournament.

[Read more…]

Entrepreneurs exhibit various leadership styles in their businesses. Some are hierarchical and imperial. They are the boss and everyone knows it. I have heard that a current public leader has told subordinates that he does not pay them to think or have opinions; he pays them to do what he tells them to do. I recently observed a discussion with another entrepreneur who was protesting that someone was discussing an issue with his “people.” He summed up his style by saying: “I have no people, there is only me. I am the only one in my organization that makes decisions.” The business he runs is a multistate chain of distribution outlets. Neither of these organizations seems like it would be a fulfilling place to work for most of our readers.

The onset of March Madness seems like an appropriate time to focus on another style of leadership that is displayed on the hardwood – point guard leadership. The role of the point guard is to implement the coach’s game plan. He or she provides leadership in the midst of the chaos of competition by controlling the tempo of the game and distributing the ball in a fashion that plays to the strengths of teammates. Point guards are seldom the team’s biggest star and usually do not lead the team in points scored or rebounds. They also are not typically the one to take the last second shot, but their leadership is critical on the outcome of the game.

This month’s interviewee, Gary Williams was a point guard during his playing career at Maryland and is one of many former point guards to succeed at the coaching level. Most talented people would rather work in an organization that is led by someone who leads like a point guard. Someone who distributes responsibility, plays to people’s strengths, gets tasks to the appropriate people at the appropriate time and who is motivated by the team’s ultimate success rather than personal recognition.

How do you lead – emperor or point guard?

2010: Market Conditions will be better for selling a company

We’re excited to bring you our final “Evergreen News” for 2009. Most of our Friends of Evergreen are somewhere between thankful and euphoric when they think of having 2009 in their rearview mirror. From the inauguration of a new president in January, the first quarter meltdown of the stock market to its comeback over the second half of the year, 10% unemployment while gold was blowing past a $1,000 an ounce……..2009 has been a “character builder” for everyone.

“What would Jimmy Buffett do”, is our way of connecting the dots to a decision that many business owners will consider in 2010 – To Sell or Not to Sell their business. At Evergreen, we anticipate that M&A activity will be up significantly over 2009. Though the banks remain cautious, well run companies in the middle market sector are anxious to expand their footprint; the capital to do acquisitions will be there. We’re also seeing strong signs that business valuations are rising, offering encouragement to business owners who want to spend more time in “Margaritaville.”

2009 has been a year of “growth and development” for us at Evergreen. We’ve added a number of key team members over the last twelve months and expect to add at least two more in the next thirty days. Team Evergreen has never been stronger; we’re deep and look forward to working with you in 2010. In the mid 80’s U.S. West ran an ad that showed cowboys on a hard trail drive, the caption under the ad read, “In business you either make dust or you eat dust.” 2009 has created a greater sense of urgency for all of us.

We want to wish everyone a safe and joyous holiday and a fantastic start to the new year. We thank you for your friendship and support and look forward to helping you “make dust” in 2010.

Happy Holidays from your friends at Evergreen