The document summarizes a 5-year study that analyzed over 7,000 private companies. It compared the top 9 highest performing companies to 9 comparison companies. It also conducted field studies in 53 additional companies. The study found that the top companies grew revenue 3 times faster than industry average and had returns on equity and sales that were 2 times the industry average. When $1 was invested in each of the 6 public breakthrough companies identified in the study, the returns significantly outpaced the S&P 500 over a 10 year period after their IPOs. The document provides examples of some of the breakthrough companies studied.
3. The Breakthrough Company
5-Year Study
•Analysis of 7000 + private companies over
a 22- year period
•Top 9 performers compared to 9
comparison companies
4. The Breakthrough Company
5-Year Study
•Analysis of 7000 + private companies over
a 22- year period
•Top 9 performers compared to 9
comparison companies
•Field studies in 53 companies
6. 5- Year Study
ROS: 3 x
Industry Average
ROE: 2 x
Industry Average
7. $1 Invested in 6 Public Companies
$250.00
$200.00
6 Public Breakthrough Companies
$150.00
$100.00
$50.00
S& P 500
$-
10
11
12
13
1
2
3
4
5
6
7
8
9
Years after IPO
8. Who are these companies?
Company Inc 500 Begin. Rev Status Location
ADTRAN 92 $42.6 mil. Public Huntsville, AL
Chico’s FAS 89 $ 6.2 mill Public Fort Meyers, FL
Express 88 $50.0 mil Private Oklahoma City, OK
Fastenal 82 $3.7 mil Public Winona, MN
Intuit 90 $18.7 mil Public Mountainview, CA
Paychex 82 $14.4 mil Public Rochester, NY
Polaris 86 $90.0 mil Public Medina, MN
SAS 82 $10.1 mil Private Cary, NC
Staubach 85 $ 2.8 mil Private Addison, TX