Strategic Leadership:
Provided strategic support and active participation in board meetings.
The founders took controlling interest and increased their personal equity value 36x.
4.5x
Revenue
The businesses revenue was increase dramatically.
6.3x
EBITDA
The business was sold at over 6.3x EBITDA, which exceeded overall client expectations.
The business owners established their company and drove its expansion for over a decade. However, they started noticing a misalignment in strategy with their initial investors. Desiring full control, they felt the need for strategic guidance, which they previously relied on from their Board of Directors.
Key Results
Since Starting Work With Fintrepid
Financial Leadership
Implemented scalable infrastructure, comprehensive budget process, and working capital best practices.
Human Capital
Developed incentive compensation plans and assisted in hiring and mentorship.
Treasury, Financial Planning and Analysis
Established cash flow forecast, treasury management, and ongoing FP&A function.
Compliance and Risk Management
Oversaw tax preparation, sales tax practices, risk management process, and crisis management strategies.
The Fintrepid M&A Process
Fintrepid Solutions
- Converted financials from a cash basis to a modified accrual to more accurately represent business performance results, particularly in light of software contract revenue that skewed monthly results
- Leveraging best practices, clean up the balance sheet and income statement accounts and supporting ledgers and schedules to provide proactive clarity for due diligence
- Rebuilt gross margin methodology to more accurately reflect results
- Redesigned the structure of the P&L for improved buyer visibility
- Prepared supporting subledger schedules to substantiate material balances
- Identified and clearly presented add-backs to EBITDA in order to enhance value opportunity
- Developed and documented scalable processes and procedures, and documented the client’s application of critical accounting policies in accordance with GAAP
- Reviewed and modified the sales tax processes to ensure compliance
- Created, maintained and modified sophisticated forecasts
- Assisted in gathering and ensuring all corporate records were accurate and complete
- Reviewed material contracts and evaluated whether any existing terms would impact a transaction
- Performed onsite visits to assess physical state of operations and assets and worked with the client on necessary improvements
Strategic Leadership
Served as sounding board, another set of eyes, strategic voice at the table to support owners – both in a structured format and ad hoc as needed.
Go To Market
Assisted in the evaluation and selection of the company’s investment bank
Managed the Quality of Earnings process by providing initial diligence items, addressing follow up requests and conducting thorough reviews of the CPA firms work to ensure accuracy
Assisted in the creation of the investment bank’s Confidential Information Memorandum (CIM)
Managed the due diligence deal room for the client
Provide strategic guidance to client in the evaluation of letters of intent (LOIs)
Transaction Due Diligence
Prepared additional due diligence items as needed
Engaged as a primary point of client contact for buyers with additional requests and meetings
Coached the client through the due diligence process so that they could opine on critical items as needed, while maintaining their focus on operating the business
Buyer Evaluation
Provided guidance on buyer terms and the detail contained within
Worked side by side with the company’s tax CPA firm and prepared calculations on the tax impact of stock sale vs. asset sale terms, which resulted in the client negotiating the best possible terms
Acted as main point of contact between the buyer’s representatives and the client
Final Transaction
Maintained a detailed working capital analysis pre and post transaction, which resulted in an accurate working capital estimate minimizing a significant working capital true-up post-closing
Prepared final due diligence and pre-closing items, as needed
Reviewed and provided guidance on final legal purchase documents
Partnered with the tax CPA to ensure full visibility and an efficient tax structure for the transaction
Buyer transition Post-Close
Managed post-close reporting
Led financial transition and integration with buyer
Performed functions as requested by buyer to ensure smooth transition and integration
