Investigative Due Diligence
Bringing 30 years of experience to the task, Fred Anderson excels in “ferreting out” the details behind any direct marketer’s history and outlook. Using specialized techniques, Fred is able to get below the surface of the financials to allow a client to understand both the strengths of a target business and -perhaps even more importantly – the lurking weaknesses that need to addressed right upfront.
Many clients ask upfront “what is my business worth?”. The answer lies beyond a simple multiple of sales, profits, or ebitda. And the answer is usually quite different for a strategic buyer than a financial one. We pull together the many “views” on value to show a client what his business might look like under different circumstances – and different deal structures. The single most enlightening thing for most new clients is to see how a strategic buyer may view his business based on its variable costs and free cash flow after eliminating expenses (usually fixed overheads) which are duplicate to costs already covered in the prospective buyer’s business.
Life Time Value Analysis
It is commonly said that one of the most valuable assets in a catalog or ecommerce business is its buyer file. But how does one place a value on that file? Fred has developed proprietary algorithms and analytic procedures to do just that. Whether it be to assist a CPA firm on an audit valuation matter, to document a key component of a deal valuation, or for an insurance claim – ANDERSONdirect has been retained many times for its expertise on this issue.
Cash Flow Forecasting
Going beyond the basics of financial forecasting , ANDERSONdirect uses its knowledge of circ and response forecasts, order curves, net-to-gross demand dynamics, procurement and logistics timing, merchant processor and marketplace remittance patterns, and a myriad of other catalog and ecommerce specific metrics to develop cash flow forecasts with a high degree of credibility.
Matchback - Analysis and Procedures Review
In today’s multichannel direct-to-consumer world, identifying from where an order originated is key to success. And worse – mis-identifying can lead to significant missed opportunities. Everyone understands the word matchback and the concept – but few really grasp the key procedures that should put in place to produce accurate results. ANDERSONdirect has extensive experience in this arena.
Identifying the many metrics that define your catalog and web operations is one thing. But seeing where you stand in comparison to your peers is quite another. Having been involved with the operating details of hundreds of direct marketers, ANDERSONdirect has the experience to assist you in benchmarking your performance.
Fred Anderson has been called to testify as an expert witness on the matter of the inherent value of a direct marketing company and its buyer file. While the need for this service may be rare – it is comforting to know that the firm has the experience and expertise to warrant such an assignment – and that this same knowledge will be brought to bear in working for you on your sell-side or buy-side matter.