To facilitate the efficient return of capital, Halsey Lane has created the Board Plus model whereby one of its Principals can become a member of the newly-constituted board. In addition to serving on the board, our team provides day-to-day oversight comparable to the oversight typically provided by the Sponsor via a process we call FORE:
| Fix: | Take immediate steps to halt and reverse declining performance |
| Optimize: | Increase EBITDA through cost cuts and revenue enhancement |
| Ready: | "Package" the company for an exit process |
| Exit: | Oversee exit process to maximize enterprise value |
The FORE process provides the focus and discipline necessary to stabilize and then increase the company's EBITDA to an optimal level within a specific period of time. In turn, a more financially and operationally successful company will appeal to the capital markets and ultimately produce a higher valuation multiple upon exit.
When compared to the most commonly chosen alternative (which is a newly-appointed independent board and management) our Board Plus model provides significant advantages:
The Benefits of the Halsey Lane Board Plus Model
| Board Only | Board Plus |
|---|---|
| Part-time responsibility | Focused, full-time effort |
| Primarily "big picture" perspective | On-site presence leads to in-depth, detailed knowledge base |
| Directors rarely work side-by-side with management on operational issues | Interim CEO capability and/or comprehensive management support provided across all functions |
| Not always available or fully-informed to answer owners' questions | Fully-informed and available 24/7 |
| Formulate exit decisions based on information provided selectively by management and advisors | Prepare company for diligence by advisors and oversee exit process in conjunction with owners and management |
| Click here to see the Board Plus model in action. | |