Our Process
Aurora Capital employs the Value-Growth Acceleration Methodology (VGAM™), a unique strategy designed to optimize growth and value in lower middle market businesses. This approach emphasizes Value-Growth Acceleration, Strategic Growth Capacity, and Exit Value Optimization. To achieve this, the firm has established a Strategic Framework that institutionalizes best practices across eight pivotal business areas, all centered around a clear vision, culture, and priorities. Furthermore, they focus on enhancing EBITDA growth by leveraging seven key levers that influence cash flow, thus improving business quality and minimizing costs. Embracing the digital age, they prioritize Intangible Asset Development by utilizing technology to digitize and democratize their client offerings. Aurora Capital also emphasizes agility through "Dematerialization", which involves outsourcing labor and assets to ensure a cutting-edge, well-trained workforce and reduced capital expenditure. The firm champions the development of decentralized decision-making ("Autonomy") by providing real-time dashboards based on Objectives and Key Results (OKRs) to all internal client employees, ensuring swift feedback loops. Lastly, they offer robust support through access to seasoned operating partners, fractional executives, and capital resources.
Step 1
Growth Opportunity Profile™
Setting the Baseline on Company Valuation and Strategic Growth Capacity
Step 2
Build the plan
Draw up an ROI based executable plan that aligns your needs, goals, and current situation.
- Strategic Framework: Institutionalizing best practices across 8 key business areas aligned around a clear vision, culture, and priorities.
- EBITDA Growth: Developing the Company’s cash flow levers and using a modified Nichols pricing pyramid to accelerate EBITDA and cashflow growth, thereby improving business quality while reducing costs.
- Intangible Asset Development: Using technology to digitize, interface, automate, and democratize the company’s products and services and build a strong Intellectual Property portfolio.
- Dematerialize: Outsourcing labor (staff on demand) to maintain a workforce always at the cutting edge of knowledge and training, as well as outsourcing assets to remain nimble and reduce CapEx.
- Autonomy:
Decentralized decision making through the use of real-time information (dashboards), with essential company and employee metrics based on Objectives and Key Results (OKRs), accessible to everyone internally, with short feedback loops.
Step 3
Implementation
Aurora provides access to experienced industry specific operating partners, networked fractional executives, and capital, as needed by the Company to support plan implementation.
A complicated issue, is one in which “the components can be separated and dealt with in a systematic and logical way that relies on a set of static rules or algorithms.” It may be hard to see, but there’s a fixed order in something that is merely complicated, and that allows you to deal with it in a repeatable manner. Selling on Amazon is a great example. Success is very dependent on rules and algorithms, but once you figure it out, you can keep doing them at will.
A complex issue is one in which you can’t get a firm handle on the parts and there are no rules or algorithms. Things that are complex have no such degree of order, control, or predictability and are much more challenging because their parts interact in unpredictable ways. Managing people and relationships is a great example. You may get lucky once, but whatever you did this time may not have the same result next time.