EPIM® |
© 2011 Sprengers Consultancy BV |
Equity Participating Interim Management (EPIM®)
Equity Participating Interim Management (EPIM®) is a form of interim management consultancy where the consultant or interim manager participates in the equity capital or the share capital of the client organisation. EPIM® is a hybrid form of management buy in (MBI) and consultancy. Compared to traditional consultancy or interim organisations, EPIM® offers clients the following advantages:
Attractive fee
In pursuance of an EPIM® agreement, the consultant works on the basis of a fee that is considerably lower than that of the traditional consultant with the same capabilities and experience.
High level of commitment
Because the cooperation agreement offers the EPIM® consultant the possibility of participating in the share capital of the client organisation at a previously established price, the EPIM® consultant also works at his own expense and risk. This enhances the commitment of the consultant; hence the remuneration of the consultant is dependent on performance and result.
Aimed at small and medium-sized enterprises
EPIM® offers small and medium-sized enterprises the possibility of hiring highly experienced consultants that would usually only be available to relatively large and financially strong businesses.
Continuity of successful business policy safeguarded
Contrary to traditional management consultants, the EPIM® consultant also stays committed to the client organisation after his initial assignment has come to an end. As a fellow shareholder, it is in the interest of the EPIM® consultant that the former client organisation continues to operate at a high performance level. The continuity of a successful business policy is thus guaranteed.
Risk diversification
The shareholders spread their business risk with the new fellow shareholder (the EPIM® organisation).
Expertise expansion for the shareholders and the incumbent management
The shareholders of the client organisation will, thanks to the well-informed new shareholder (EPIM® consultant), be better able to supervise the developments with regard to their investment.
High level of reliability of the business
A new and successfully implemented strategy makes the business reliable to banks and investors and also a better valued business partner to buyers and suppliers. |