Strategic Advisory Services

Initial Assessment

Our advisors offer sellers an initial assessment which typically takes 2-4 weeks and includes an analysis of the organizations financial statements, accounting processes, and overall financial health. Based on their findings, our advisors deliver an action plan to sellers that recommends the optimal next steps for the organization to prepare to go-to-market.

Remediation

Not only does the initial assessment include what needs to be corrected before going to market, but how to fix it. Our advisors offer remediation based on their findings in the initial assessment which typically includes historical cleanups, system optimization, SOP refinement, and cash to accrual reporting.

Financial Statements Review

The foundation of financial due diligence lies in the meticulous review of historical and current financial statements. This includes scrutinizing income statements, balance sheets, cash flow statements, and statements of equity. Understanding these documents is essential for developing a comprehensive business strategy and ensuring the company’s financial stability.

Accounting Policies Assessment

Consistency and compliance with accounting policies are vital for accurate financial reporting. Our strategy consulting services team evaluates the accounting methods used by the target company to prepare its financial statements, ensuring they align with industry standards and best practices.

Financial Performance Analysis

Analyzing key financial metrics, ratios, trends, and performance indicators provides insights into a company’s profitability, liquidity, solvency, and financial stability. This analysis helps in crafting effective growth strategies and addressing the most critical issues facing the business.

Assets and Liabilities Examination

A thorough examination of assets, liabilities, and contingent liabilities is crucial. This includes evaluating the nature, value, ownership, and condition of assets like inventory, receivables, property, plant, equipment, debt, and obligations. Such assessments are integral to our strategic advisory services, ensuring that all financial aspects are transparent and accounted for.

Revenue Recognition Review

Scrutinizing revenue recognition policies, practices, contracts, and transactions ensures compliance with accounting standards and regulations. This review helps in maintaining accurate financial reporting and developing reliable business strategies.

Expenses and Costs Review

Identifying areas of efficiency, effectiveness, and potential cost savings or risks is essential. Our advisory services include a detailed review of expenses, costs, and overheads to support sustainable growth and optimize operational efficiency.

Taxation Assessment

Tax compliance, exposures, liabilities, incentives, provisions, and strategies are critical issues in financial due diligence. Our strategy consulting services help assess various tax aspects, including income taxes, sales taxes, property taxes, and transfer pricing, to mitigate risks and optimize tax benefits.

Legal and Regulatory Compliance

Identifying legal, regulatory, compliance, and governance issues that may impact the company’s financial performance, operations, or reputation is vital. This ensures that the business is well-prepared to address any challenges and maintain compliance with relevant laws and regulations.

Key Areas of Quality of Earnings

• Revenue Recognition and Expense Classification: Ensuring consistency and compliance with accounting standards.
• Non-Recurring Items and Adjustments: Identifying items that may distort the company’s financial performance.
• Cash Flow Analysis: Assessing the sustainability of cash flows to support future growth.

Our strategy consulting services team has extensive experience across various industries, providing tailored QofE analyses to meet diverse client needs.

Financial Preparedness

Conducting thorough financial due diligence to assess the company’s financial health, performance, liabilities, assets, cash flow, and valuation is the first step in M&A readiness. This process is essential for developing a successful growth strategy and maximizing shareholder value.

Operational Readiness

Evaluating the operational capabilities, systems, processes, and infrastructure of the company helps identify potential integration challenges and opportunities for improvement. Developing a comprehensive plan that outlines steps, timelines, responsibilities, and milestones ensures the company is M&A-ready.

Post-Transaction Integration Support

Supporting the integration plan systematically and efficiently focuses on key areas such as organizational structure, IT systems integration, workforce integration, and synergy realization. Monitoring and assessing the company’s performance post-integration helps track progress, identify issues, and make necessary adjustments to achieve desired outcomes.

Financial Preparation

Ensuring financial statements, including audited financials for several years, are accurate, transparent, and compliant with regulatory standards like Generally Accepted Accounting Principles (GAAP) is crucial. Establishing robust financial controls and internal processes ensures accurate financial reporting and compliance.

Corporate Governance and Compliance

Composing a strong, independent board of directors with relevant expertise and experience provides oversight and guidance. Implementing effective risk management practices helps identify, assess, and mitigate potential risks impacting the company’s financial performance or reputation.

Operational Readiness

Streamlining and optimizing business processes improves operational efficiency and scalability, essential for successful IPO readiness.

Market Positioning and Strategy

Conducting thorough market analysis helps understand industry trends, competitive landscape, and market dynamics. Articulating the company’s unique value proposition and competitive advantage to potential investors and developing a clear growth strategy and roadmap demonstrate the company’s potential for long-term value creation.

Timing and Market Conditions

Evaluating market conditions and timing for the IPO, considering factors like overall market sentiment, industry trends, and investor appetite for IPOs, is critical. Securing necessary funding through pre-IPO financing rounds or other sources strengthens the company’s financial position and supports its growth initiatives.

Valuation Analysis

Determining the company’s fair value and its securities involves assessing various valuation methodologies like discounted cash flow (DCF) analysis, comparable company analysis, and precedent transactions analysis. This helps arrive at a realistic valuation reflecting the company’s intrinsic worth.

Investor Relations Management

Managing investor relations during the capital raise process involves preparing investor presentations, financial disclosures, and other materials to communicate the investment thesis and value proposition effectively. Facilitating meetings and negotiations with investors helps build relationships and secure commitments.

Due Diligence Support

Leading or supporting the due diligence process ensures the company’s financial records, operations, and projections are thoroughly reviewed and validated by potential investors. Organizing financial documentation, responding to investor inquiries, and addressing concerns during due diligence is essential.

Deal Structuring Insights

Providing valuable insights into deal structuring and negotiation helps optimize the capital raise terms, maximizing value for the company and its shareholders.