Client Question Corner: “How is Perimeter Advisors different from an investment banker?”—March, 2016
This is a terrific question—thanks, Bob!
Indeed, Perimeter Advisors does bring a lot of the same skills—ability to quickly analyze and grasp key value drivers (and risks) in a wide variety of businesses and translate these into how prospective investors/buyers would view and quantify; deep knowledge of deal structures, values, terms, options—what is “standard” and what is not and how best to negotiate; and familiarity with conditions and players in the deal market.
However, we have consciously chosen not to be a “transaction-oriented” player, as we get far more satisfaction out of helping business owners build value over time. .. .. and achieve their own goals (whatever those may be). While many of our clients are interested in an exit at some point down the road, all are interested in using our domain expertise to build value for themselves and their families.
For that reason, we work on a retainer basis (think of us as a part-time CFO/COO/Director) and not on a success fee one, and we dig in and assist in implementing the plans we help clients create. We are free to assist the owner in getting whatever he/she wants, both near- and longer-term—If that is to continue to hold onto what becomes a more-valuable entity or to make choices that are important to him/her but don’t make the most “sense” from a purely financial perspective, that’s totally fine. We aren’t incented to push for a deal.
Paradise 4 Paws acquires Pooch Hotel locations across the U.S.–March, 2016
Paradise 4 Paws (P4P), Chicago-based operator of premier resorts for dogs and cats, and leading pet specialty retailer Petco, recently announced that P4P has assumed the operations and management of Petco’s Pooch Hotel brand and its properties, including all ten locations across the U.S., effective March 1, 2016.
Pooch Hotel, first opened in 2004 and acquired by Petco in 2011, is a luxury boarding and daycare destination for dogs that provides an interactive and enriching day and overnight care experience, including on-site grooming, spa and dog training services. Today, there are ten Pooch Hotel destinations in California, Connecticut, Illinois, Massachusetts and Texas. P4P will assume operations for all Pooch locations in addition to its four existing P4P locations near Chicago’s Midway and O’Hare Airports, and at Dallas Fort Worth Airport and Denver International Airport, with another set to open at New York’s John F. Kennedy International Airport later this year.
“We are honored to assume the operations of Petco’s Pooch Hotel brand to further elevate our focus on being the trusted provider of premium pet services across the country,” said Saq Nadeem, Founder and CEO of P4P. “Petco’s Pooch Hotel brand offers a level of service and care that is closely aligned with our own mission; to provide superior quality and care for pets and the utmost convenience and service for their human parents. We look forward to expanding our operations and services and welcoming existing employees of both entities to provide unparalleled access to exceptional pet services as we become the largest premium pet service provider in the country,”
Paradise 4 Paws was founded by Saq Nadeem and Johanna Newcomb based on a business plan crafted while they were students at the Kellogg School of Management at Northwestern University. Its first pet resort, near Chicago’s O’Hare Airport, opened in May of 2008.
Congratulations to Saq, Johanna, and the entire P4P team on this major milestone!
Perimeter Advisors Receives Illinois Business Broker License – Dec. 2015
Perimeter Advisors is pleased to announce that it has recently been registered as a Business Broker by the Illinois Secretary of State Securities Department. This license allows the firm to represent privately-held businesses in both purchase and sale transactions, as provided under the Illinois Business Brokers Act of 1995.
Commenting on the registration, Perimeter President Karin O’Connor stated, “We have always been great fans of credentialing. While we have long provided strategic advice related to company sales, we are excited that we can now actively solicit, structure, and negotiate transactions on behalf of our clients.”
It’s never too early to start thinking about an eventual liquidity event. Whether your plans are near-term or somewhere down the road, we can help you sort through the options. Just give us a call at 773 368-4852.
AWARE Grant to Broaden Participation in Entrepreneurship at the University of Illinois – Dec. 2015
A National Science Foundation grant will fund a new program to encourage and support the participation of more women and those from underrepresented groups in the science and technology entrepreneurial ecosystem at the University of Illinois at Urbana-Champaign.
The AWARE (Accelerating Women And underRepresented Entrepreneurs) program is a collaboration among the College of Engineering, the Office of Technology Management, and the EnterpriseWorks incubator at the University of Illinois Research Park. The $100,000 award will support entrepreneurship training, counseling, and networking,
“This pilot program has the potential to build our nation’s entrepreneurial pipeline in a meaningful, replicable and sustainable way,” said Dr. Jesus Soriano, a SBIR/STTR Program Director at the NSF. “By opening doors and avenues to participation, women and underrepresented groups will be more likely to join and thrive in the innovation ecosystem in the US.”
AWARE has been designed to offer resources and an enhanced infrastructure that make the current entrepreneurial ecosystem more accessible to all. Those resources include a dedicated entrepreneur-in-residence familiar with the needs of those from underrepresented groups; small proof-of-concept grants for teams; and targeted mentorship, training, and networking opportunities. In addition, AWARE will raise the consciousness of the entrepreneurial ecosystem as it relates to issues of diversity and inclusiveness.
Perimeter Advisors founder Karin O’Connor has been named Entrepreneur-in-Residence and will be recruiting, mentoring, and coaching AWARE entrepreneurs at all stages of the process. She recently commented, “What I like most about the AWARE approach is its focus on attracting more people into the mainstream ecosystem as opposed to creating a “separate-but-equal” track. Inclusion is critical if we want entrepreneurs from these under-represented groups to find real success.”
More information about the AWARE program can be found at http://researchpark.illinois.edu/news/awaregrant.