Given the oversight and business transition planning needs of middle market companies, Business Growth Alliance offers specialized services focused on monitoring the value of our clients’ equity invested in private companies. We refer to these services as our Private Company Equity Oversight (“PCEO”) services.
As businesses grow and develop, the value monitoring demands increase, whether there is a need to track internal or external operational metrics, economic factors, capital market conditions, or competitors’ actions, capitalization or ownership. To support its broad range of PCEO services, BGA has developed institutional quality monitoring capabilities that range from being able to monitor the operations of the business at the micro-process level to monitoring the economic business cycle, the industry life cycle, and the capital market environments to ensure that senior management teams make timely operating and strategic decisions to preserve and maximize the value of the business. BGA’s proprietary tools and techniques enable businesses to sharpen strategic focus, improve operating results, enhance governance effectiveness, and protect franchise and equity value.
Some clients, using our PCEO services, are also seeking oversight of ownership interests in private companies on behalf of passive shareholders or their representatives (e.g. trustees). Such services are often needed during times of inter-generational transfers of Upper Middle Market family owned companies. An implementation weakness related to the wealth transfer plans of many older generation shareholders is the lack of effective mechanisms for the oversight of company shares that are transferred for the benefit of younger generation family members. In fact, several nationally recognized estate planning experts have referred to the transfer of private company shares to younger generation beneficiaries as the “Achilles Heel” in wealth planning for business owning families. This is because, in most instances, there is not an effective mechanism put in place to assure ongoing performance monitoring and oversight of shares that are being transferred for family wealth planning purposes.
BGA’s PCEO services draw upon our experience, knowledge and skills to provide highly effective oversight of private company equity interests to facilitate the growth of companies and the transition of ownership. Value Monitoring is one of the Seven Critical Elements™ for long-term success with Corporate Development and Generational Transition Solutions. We believe our PCEO services can add-value to most businesses.