Thursday, January 26, 2006

Triple Tree - We Know Business Services

www.triple-tree.com TripleTree's focus in business services highlights the growing convergence and value unlocked when combining software, processing services and data. Defining the sector incorporates various technology and content-centric approaches to addressing business improvement. Outsourced business models often sit at the center of business services. Largely popularized by the management of multi-national corporations' technology infrastructure by firms such as IBM, EDS and CSC, outsourcing has rapidly expanded its scope to address discrete business functions and full business processes across multiple domains including human resources, finance, procurement, and customer service as well as specific administrative tasks within vertical industries such as healthcare, financial services, retail, government, etc.

Unlike the volatility and market restraint witnessed in the software, hardware and consulting industries since 2000, business services, and in particular vertical domains within business process outsourcing (BPO), have flourished. Valuations during the market downturn held strong as investors and acquirers sought the comfort of long-term, recurring revenue models. Companies such as Fiserv, First Data, ADP and Bisys took advantage of economies of scale, best practices and the ability to leverage IP in building sustainable business models around transaction processing, while other companies such as Exult, Accenture and ACS formed (or re-formed) core competencies to address the outsourcing of front and back office services. Benefiting from such public attention and corporate interests in streamlining "non-core" costs, private business services firms find themselves in an enviable position to reap the rewards of private capital investment and premium valuations in the M&A market.

As entrepreneurs and public firm executives seek to accelerate growth and unlock the value within their business services firm, TripleTree leverages its transaction success, operational backgrounds and commitment to research to design and execute proven growth strategies. With specialized emphasis in the areas of human capital management and BPO, TripleTree helps capitalize on today's robust demand for business services in assisting companies pursue multiple strategies: raise growth capital; evaluate merger and acquisition opportunities; recapitalize the business to strengthen the company's capital position while addressing the near-term liquidity needs of shareholders; or outline a 2-3 year exit plan that leverages new market development, interim capital or growth through acquisition as short-term, value-add building blocks. Whatever the strategy, TripleTree's approach is to assist owners and operators in understanding what paths exist for their specific business services firm that marry business and shareholder objectives against market opportunities for maximize value. Key questions in such a process include:
Is my business services or outsourcing firm valued at a premium in today's market?
What demand exists in today's outsourcing market to raise growth capital?
What is going on in the M&A market and what opportunities exist to address both accelerated growth and liquidity through a merger or acquisition?
Are different verticals or domains in higher demand relative to today's BPO market?
What timing best positions my company in pursuit of a successful capital or M&A event?
What steps should I take today to maximize the value of my firm for exit or a subsequent capital event 2-3 years down the road?

Today's market for business services firms remains in high demand. As a result, well-positioned firms benefit from various opportunities for growth and liquidity. TripleTree's transaction expertise, research and focused approach to business services is designed for a single goal - execute a customized strategy that maximizes the value and objectives of your firm.

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