Evaluate, Change, Focus, Execute, Re-evaluate 

Ephor Newsletter Q3 2023

With the 1st half of 2023 now behind us, and as we embark on Q3 2023 and beyond; especially during disruptive times with significant “exogenous” influences of present. Mid-year is always an opportune time to evaluate your business and its performance against expectations and the current market conditions & situations presented. The basic evaluation questions should include:

  • Did the business perform to budget or shareholder expectations? If so, what were the successes and how do we build upon them?

    • If not, why not? What were the deficiencies and what needs to be done to correct those deficiencies?

  • Is the business model, business process and leadership team effectively responding and taking advantage of the disruptive and exogenous influences on the business and the markets?

    • If not, why not? And again, what needs to be different on a go-forward basis?

  • Is the leadership team appropriately skilled to make both the tactical changes and strategic adjustments necessary to take full advantage of the changing market dynamics?

    • Does the company have proven, experienced and empowered outsider influence?

  • From a shareholder perspective does the business understand its strategic and capitalization options in the near term?


As you go about your “internal” evaluation and corrective action process to maximize shareholder value; please bear in mind that the following “knowns” will affect your business in the near term. Those will include:

  • Recessionary pressures will be more prevalent over the next 6-8 months. As such during recessionary times (historically during recessions) service businesses especially outsourcing businesses, the demand for services increases exponentially.

    • Therefore, what changes or enhancements to your revenue generation business process are you making?

  • Political and Judicial Disruption combined with “Market Perversion” will continue to be prevalent as the country “weaves” its way through the current cultural and economic revolution of the present.

    • What opportunities does this landscape present for your business and what negatives must to addressed?

  • Interest Rates and Cost of Capital will continue to rise. Therefore, it is incumbent upon the company’s leadership to seek out and garner the appropriate amounts of operating capital and ensure the company obtains that capital in the most appropriate manner for the company.

    • Does the company enjoy the skill and expertise to “optimize” the cost of capital and identify the “optimum” amount of capital?

On a more tactical or operating level Ephor strongly advises service company leadership in the 2nd Half of 2023, to focus on the following 8 critical success factors of your business model, which will convert in the near term to increased shareholder value and wealth creation:

  • Consistent Revenue Growth & Profitability (EBITDA)

  • High Client Retention & Customer Satisfaction

  • Diversification/Portfolio of Services and Expansion of the Client Base

  • Productization of Services into Service Packages

  • Hire, Train, and Retain a Skilled and Productive Workforce

  • Implementation & Utilization of Technology & Innovation

  • Ensure the Organization has Experienced, Competent, and Empowered Outsider Influence

  • The Ability to Change and Adapt (who are the informal change agents?)

Having been advisors, investors, stewards, and operators of service businesses for over 22+ years now: we have seen a lot, learned a lot, therefore if you or your management team are just not sure how to implement any or all of our guidance. Please feel free to contact us below.

In any event, we at Ephor wish each of you a very prosperous and successful 2nd Half of 2023.

For additional knowledge and guidance information relevant to your business please feel free to visit our “Knowledge Library” or see Top 7 Critical Success Factors that Drive Enterprise Value.



Garry E. Meier
Strategic Advisory Practice Lead