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Value creation is a higher stream of free cash flow that survives the cycle you are not in yet.
How SpearTip Advisors helps. The firm’s line is perpetually sharp, human-edged. A value-creation plan can list initiatives. It cannot tell you which ones produce cash and which ones only produce a story. That is the project.
This is what we do:
- The cash. We rebuild value from free cash flow, not from a target multiple. Revenue per customer, gross margin, and capital efficiency, unit by unit. If a lever does not raise sustainable cash, it does not make the plan.
- The moat and the hurdle. We test whether the advantage survives an industry shift, then set the true cost of capital as the bar. Projects below it are declined, however strategic they sound in a board pack.
- The traps. Vanity growth, leverage taken because the cycle is kind, and maintenance capital deferred to protect a quarter. Inversion is part of the work. We name what would destroy the cash flow before we recommend what would grow it.
- The policy. A quarterly operating cadence, M&A only when it accelerates cash-flow velocity, and a capital-allocation rule that funds high-return reinvestment first. Dividends and buybacks come after. You leave with a value-creation program you can run, and a basis for an exit that reflects economic profit rather than the market’s mood.
You keep the decision. SpearTip Advisors keeps the cash math honest, the hurdle explicit, and the residual in its place. That is the difference between growing the company and growing what it is worth.
Value creation is a higher stream of free cash flow that survives the cycle you are not in yet.
How SpearTip Advisors helps. The firm’s line is perpetually sharp, human-edged. A value-creation plan can list initiatives. It cannot tell you which ones produce cash and which ones only produce a story. That is the project.
This is what we do:
- The cash. We rebuild value from free cash flow, not from a target multiple. Revenue per customer, gross margin, and capital efficiency, unit by unit. If a lever does not raise sustainable cash, it does not make the plan.
- The moat and the hurdle. We test whether the advantage survives an industry shift, then set the true cost of capital as the bar. Projects below it are declined, however strategic they sound in a board pack.
- The traps. Vanity growth, leverage taken because the cycle is kind, and maintenance capital deferred to protect a quarter. Inversion is part of the work. We name what would destroy the cash flow before we recommend what would grow it.
- The policy. A quarterly operating cadence, M&A only when it accelerates cash-flow velocity, and a capital-allocation rule that funds high-return reinvestment first. Dividends and buybacks come after. You leave with a value-creation program you can run, and a basis for an exit that reflects economic profit rather than the market’s mood.
You keep the decision. SpearTip Advisors keeps the cash math honest, the hurdle explicit, and the residual in its place. That is the difference between growing the company and growing what it is worth.