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Welcome to the JonERP.com Podcast Directory

This podcast directory provides handy previews, in text format, of all the podcasts available for download at JonERP.com. There are also video podcasts in the SAP Blog section. Note: The JonERP iTunes feed is currently the most complete audio feed of all new audio content, as Jon posts audio of his video podcasts and hangouts in that feed also. If you're a video fan you'll want to track JD-OD.com also.
 
To gain access to the audio for all the podcasts listed in the directory below - 100 and counting - you will need to register with JonERP.com. Registration is currently free.
Do You Know an SAP Company That Needs Expansion Funding or Capital Restructuring? Print E-mail

jonerp.jpgOr do you work with (or own) such a company yourself?

Jon Reed of JonERP.com has formed an exclusive working relationship with a firm that specializes in helping third-party firms in the SAP ecosystem grow through merger and acquisition advising, expansion funding and capital restructuring. If your firm is a good match, Jon Reed will be glad to introduce you with no cost or obligation.

In order to be introduced to this source of SAP funding advice and resources, you need to speak directly with Jon Reed about your SAP business model so he can decide if it's appropriate for referral. There are no absolute requirements in terms of revenue or business model. The only requirement is that the company you are referring has an innovative business model and is looking for excellent advice on capital management in an SAP context. 

If Jon Reed decides your firm is a good fit for such a discussion, he will make the referral, and there will be no cost for an initial consultation. All the companies Jon has referred so far have had great things to say about the value of the free advice they have received, regardless of whether they moved ahead with this particular company for their SAP funding and M&A needs. 

This firm is NOT a venture capital firm themselves. To give you a better idea of what they can do for an SAP third-party company with a good business model, Jon asked the advisor to give an example of what he does:

"Let me give you an example of a current client. We are currently working with an SAP implementation firm that has revenues north of $10 million. They are bullish on their business. However, the owner needs expansion capital in order to achieve his vision and fund key strategic initiatives. We will work closely with the CEO to review the firm's vision, financials and operations. We will then present the CEO with "strategic options" - scenarios to consider. We will work with the CEO to understand the pros and cons of each scenario and help them select the one most appropriate.

"Upon the approval of one or more of the strategic options, we prepare a "book" that describes the client opportunity to targeted investors. We select certain types of targets. We then go through a structured process to market to, and engage our targets. Targets could be mezzanine financing firms, private equity firms (not venture capital firms), or strategic buyers (software vendors, system integrators and the like).

"The end result can be one of three options for the firm:

1) Mezzanine financing is provided - the firm needs to have well established revenue streams and be profitable. For this option, the healthier the firm's revenue sources the better.

2) A recapitalization - or "recap" is executed - This is a terrific option, and like option one, the firm needs to generate $10 million or more in revenue and be profitable, or close to it. In this situation, the owner takes some money off the table (the Private Equity firm provides partial liquidity to existing shareholders). The Private Equity firm not only pays for part of the owner's equity and takes a financial stake in the firm, it also injects expansion funds for growth (M&A, Sales, R&D, etc.).

The newly recapped firm embarks on a 3 to 8 year journey that results in accelerated growth and a successful exit. In this case, the owner removes his or her risks by sharing some of it with their new partner. They are still significant shareholders. With this option, the financial outcome for founders/owners are: Money at the point of recapping, as well as money at a future point of company exit. Most likely, the owners will receive a higher total financial outcome, and receive it sooner, with the Private Equity partner than if they would if they went on their own.

3) There is a sale of the firm to a larger strategic buyer - a buyer that sees the value in the company's existing business model. The firm's owner gets cash at the time of sales or exit, and typically stays on for a specified period in a management capacity to ensure a smooth transition.

"We, as advisors, work on behalf of the owners (our client) to ensure the best possible outcome for them personally and their firms overall. As former business owners of technology firms, we understand what owners go through and we work to protect their interests. One key point is that we carefully go through an exit planning session with the founders/owners to prepare them for one of the three options presented above. This is a big step, and preparation is critical. We do this to ensure the founders/owners greater wealth.

Jon, I look forward to hearing from your referrals."

If these options sound appropriate for your firm to consider, please contact Jon Reed directly to discuss further. 

And yes, if you know of such a firm, Jon should be able to arrange for a paid referral if a deal is eventually consummated. 

We look forward to hearing from you!

Jon Reed is an independent SAP analyst and SAP Mentor who blogs and podcasts on SAP consulting trends. Jon is the president of JonERP.com, an interactive website that features his take on the changing SAP marketplace. Jon works with SAP services firms to optimize their online recruiting practices and develop a more effective "conversational marketing" approach. Jon is also the author of The SAP Consultant Handbook, and he is a regular contributor to PAC's "Feeding the SAP Ecosystem" analyst blog.

 

 

 

 

 

 

 

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