SHG: Sample Strategic Advisory Proposal

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SHG's strategic advisory proposal for a private school in the New York City area. Prepared by:

Robert W. Schwartz, http://www.shggroup.com/RWSprofile.html

and
Frederic Buse, http://www.shggroup.com/FJBprofile.html

Published in: Business, Economy & Finance
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SHG: Sample Strategic Advisory Proposal

  1. 1. The following is a proposal compiled by SHG professionals to a Private School. Confidentialdetails have been redacted.------------------------ --------- --------------- -------- -------------- ------------ -------------------- --- --------- Re: Business and Financial Advisory AgreementDear------ -----------,We have enjoyed working with you and ------ ----- to renegotiate the loan arrangements of ---- ----- ----------(the “School”) with ---- ------. You have asked the Schwartz Heslin Group, Inc.(“SHG”) to assist the School in replacing the letter of credit now provided by------ -------. Thisletter describes our understanding of the situation, the scope of services and work elements wepropose, our planned staffing, timing, fees and expenses, and our standard engagement terms.BACKGROUNDThe school was founded in the ----- and now has an enrollment of approximately 450 students.Since inception, the School has moved several times due to enrollment growth and now occupiesits own six-story building on ---------- Avenue. The Building has six classrooms in each of thetop four floors with its pre-school and kindergarten occupying four classrooms on the secondfloor. Average tuition is $9,700.You have asked us to assist you to review and refine your financial projections, create anexplanatory narrative report, assist in identifying target banks and negotiating a new letter ofcredit.SHG BACKGROUNDSHG was created in 1985 to provide strategic and financial advisory consulting services forsmall to medium size companies. SHG has conducted over 530 assignments. These assignmentsinclude: strategic planning, creating business plans for new ventures, mergers and acquisitions,valuations, fairness opinions, assisting with Initial Public Offerings and private placements, and TRUSTED ADVISORS SINCE 1985 8 Airport Park Boulevard Latham, NY 12110 ph. 518.786.7733 fax 518.786.6558 http://www.shggroup.com
  2. 2. ------- --------- -------------- ---, -----troubled company restructuring. Our client experience and further qualifications can be furtherviewed at our website, http://www.shggroup.com.The SHG team is comprised of executives with a unique mix of skills and experiences that webelieve are highly applicable to your situation. The team includes CEO, COO and CFO levels ofexperience in both start-up and established high-growth companies. It includes functionalexpertise in strategic management, financial structuring, marketing, sales, operations,administration and accounting. We expect to establish a long-term advisory relationship witheach client, and provide added value to help achieve long-term objectives.ENGAGEMENT OBJECTIVESSHG shall be engaged for the following objectives: Assist the refinement of the school’s short- and long-term strategic and financial plans. Assist in the completion of a comprehensive document to be used with selected banks. Assist you in replacing your letter of credit agreement with ---- -------.The following are the primary work elements that need to be performed to accomplish theengagement objectives: Update due diligence on the School and its market. Advise and assist School management in the refinement of short- and long-term strategies and financial structure options. Assist School management to prepare a descriptive document, including financial projections for the next three-five years, which will be used in approaching various banks. Identify target banks. Meet with officials of target banks to negotiate the terms of a letter of credit Assist in finalizing arrangements for the renegotiated letter of credit.Other Perform such other services as may be mutually agreed at a fee to be determined.------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------TIMING TRUSTED ADVISORS SINCE 1985 8 Airport Park Boulevard Latham, NY 12110 ph. 518.786.7733 fax 518.786.6558 http://www.shggroup.com
  3. 3. ------- --------- -------------- ---, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------STAFFING AND FEES---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ----------- 2. ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ----------- 3. ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.ENGAGEMENT TERMS---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. **** TRUSTED ADVISORS SINCE 1985 8 Airport Park Boulevard Latham, NY 12110 ph. 518.786.7733 fax 518.786.6558 http://www.shggroup.com
  4. 4. ------- --------- -------------- ---, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Very truly yours,SCHWARTZ HESLIN GROUP, INC.Robert W. Schwartz, Managing Director Frederic J. Buse, Managing Director TRUSTED ADVISORS SINCE 1985 8 Airport Park Boulevard Latham, NY 12110 ph. 518.786.7733 fax 518.786.6558 http://www.shggroup.com

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