Source: Axial Markets For business owners looking to divest their current interest in a company, there are two main ways to do this — pursue an asset sale or a stock sale. Deciding what is most beneficial requires the evaluation of several factors. For starters, the tax implications and liabilities that come along with asset […]
Understanding Asset Sales Versus Stock Sales in Corporate M&A Read More »
Source: Gary Ampulski , Midwest Genesis With the economy in a sustained recovery and lenders willing to help, many business owners are considering making an acquisition as a growth option. Most accomplished acquirers will tell you they have learned more from their mistakes than they have from their successes. Current market conditions suggest it is a
Top 10 Mistakes to Avoid When Making an Acquisition Read More »
Source: David Eisenberg , Axial Forum Here we will take a look at the top four reasons why a typical M&A transaction fails to come to fruition. Whether you are currently engaged in a potential transaction or are exploring your options, these themes will help provide some insight into some of the biggest challenges to the deal
Top 4 Reasons M&A Deals Fall Through Read More »
Source: Tom Goldblatt, Managing Director, Ravinia Capital Ravinia Capital Founder Tom Goldblatt provides insight into selling a troubled company, explaining why a series of thoughtful considerations must be put forth and followed before there can be any realistic expectation of achieving a “best possible” outcome. Traditionally, only a few restructuring solutions have worked for stakeholders
Selling a Distressed Company – Achieving a “Best Possible” Outcome Read More »
Source: Billy Fink , Axial Markets “Do I really need an M&A adviser?” This is a question thousands of business owners ask themselves every year when they embark on the process of selling their company. Although there are many benefits to an adviser, some business owners still choose to bypass the intermediary, thinking the value
M&A Advisers Proven to Improve Valuations Read More »
Source: James Darnell, KLH Capital As with many things in life, expectations are key to having a successful outcome to the diligence phase of selling your business. The more you understand of the due diligence process — and match your expectations accordingly — the more you can prepare, the easier the process will be, and
Sale of Your Company – What to Expect in Due Diligence Read More »
Source: Mark Borkowski, Mercantile M&A Selling your business is an exhausting and totally consuming ordeal that leaves you with little time to think about your business, yourself, and your post-sale circumstances. But, the sale will end, and the future is uncertain. Will you stay in the business? If so, for how long? Will you start
9 Things You Must Do After Selling Your Business Read More »
Source: Mason Myers, General Partner, Greybull Stewardship When selling your business, reaching the letter of intent (LOI) stage is a great indicator of success. But, the process is far from over. There are many steps that still lay ahead that can derail or ruin the transaction. Below are 7 pitfalls to be aware of between the LOI
7 Success Drivers Between Signing LOI and Closing the Sale of Your Company Read More »
Source: Colin Cunningham , Axial Networks, Inc. Disagreements emerge in any negotiation. For transactions in the middle market, the friction is typically around price. Despite months of negotiation, buyers and sellers often have trouble agreeing on a specific purchase price. But this disagreement does not need to end the entire process. Rather than scrapping the transaction,
What is an Earn-out? Read More »
CohnReznick’s Fifth Annual Liquidity and Capital Raising Forum recently brought business executives and investors together to hear observations and insights focused on many of the most relevant topics, issues, challenges and opportunities impacting mergers and acquisitions activity, liquidity, capital raising, and financing. Whether your a small or large scale business check out this blog about
Hot Topics in Mid-Market M&A, Capital Raising, Liquidity & Finance Read More »
Graf Research™ unleashes innovation by developing ideas into disruptive technologies. The Graf mission aims to perform research, provide services, apply analytics, and create products that enable secure, high-performance, embedded, and adaptive computing solutions.
When the Director of Finance for Graf was leaving the company, Graf needed an experienced financial team to get them through the transition. Managing Director Gary Hayes was introduced to Graf and determined that CFO Rendy Richards and Controller John Schefke would be an ideal combination. These two were particularly important because Graf is a U.S. Government contractor, and both Richards and Schefke have strong backgrounds and deep skill sets in this industry.
The two Scale Finance professionals quickly responded to Graf’s time-sensitive need, logically split up the work, learned the DELTEK version used by Graf, introduced more efficient processes and techniques, and helped meet their financial reporting needs. Our professionals also determined that the Senior Staff Accountant was underutilized and helped her grow into a permanent, cost-effective Controller role.
FX HedgePool (FXHP)
FX HedgePool (FXHP) is a New York and London-based highly innovative fintech company. FXHP is an award-winning peer-to-peer matching platform that optimizes the FX swaps market. The Company eliminates market impact and minimizes the effects of volatility – significantly improving outcomes for all investors.
FXHP’s unique credit model separates liquidity from credit, creating a new source of safe and dependable liquidity for the swaps market. The Company exists for the community, guided by the community with a “win-win-win” commitment that helps members, underlying investors, and banks yield safer and better results.
Scale Finance began serving FXHP years ago, providing annual business valuations to support 409A compliance for the Company’s management incentive equity plan. During this period, Scale Finance Managing Director Dave Gilroy advised FXHP about potential strategic corporate transactions. In 2022, the Company decided to raise institutional venture capital. Scale Finance managed this process from end to end, resulting in a highly successful closing of an $8 million Series A equity financing led by Information Venture Partners with participation from Fidelity International Strategic Ventures and NAventures (National Bank of Canada’s corporate venture capital arm).
Scale Finance continues to provide periodic business valuation support.
Heritage Trust
As the first independent trust company in New Mexico, established in 1994, Heritage Trust (HT) uses innovation, experience, and flexibility to meet clients’ needs. HT provides a full range of trust services, e.g., acting as their client fiduciary for their Trust assets, being an executor or personal representative related to the distribution of estate assets, managing and growing financial assets, and preparing annual tax returns for trusted clients.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO and managing Controller support since February 2021. We have streamlined their monthly and year-end close process and established budget/forecast capability to support management. Their business has grown over 40% since Scale Finance has been involved with the company’s financial management. Gary has also participated in Board Meetings as and when needed.
Southland Transportation Company
Southland Transportation provides transport, supply chain, and campus management services on a local, regional, and nationwide basis. When Southland contacted Scale Finance, they had a strong accounting staff but no Controller or CFO. After an unsuccessful search for a full-time CFO, Southland engaged CFO and Partner Rendy Richards as their fractional CFO.
Over 18 months, Richards helped integrate a new acquisition, made improvements in accounting and finance processes, developed the company’s first-ever annual budget, helped with the onboarding of a new Controller, and provided business valuations in conjunction with Scale Finance’s Managing Director, Dave Gilroy.
For over six decades, Cooper Electrical has served a wide range of industrial, commercial, and municipal customers across the Southeast, providing best-in-class Electrical Design/Build, BIM, Prefabrication, Instrumentation & Controls, and Calibration services. Cooper’s expertise spans multiple major markets, including bio-pharmaceutical, chemical, water & wastewater, power generation, manufacturing, gas production & transmission, and food & beverage.
When Cooper’s CFO left the company for another opportunity, the owners engaged Rendy Richards as interim CFO while they searched for a full-time replacement. On a half-time basis over eight months, Richards kept the company’s financial organization humming, made improvements in several business processes, initiated a detailed financial forecast, and met with the owners to share his observations and recommendations on the most feasible way to staff their finance and accounting department cost-effectively.
SymmetryRX, LLC
SymmetryRX is a leading provider of eSampling services allowing Pharma Manufacturing companies to access physician practices for the ordering and distribution of drug samples across the US. The Company was acquired in November 2018 from Aptus Health, a wholly-owned subsidiary of Merck. Since then, the company has expanded its robust suite of services that provides pharma manufacturing executives, brand managers, sales managers, product managers, and launch managers the ability to help more patients have greater access to samples, improving medication adherence and healthcare outcomes.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO Services to the Company since 2018 and was integral in the acquisition process, facilitated initial financing to support the company with a 7A SBA loan package of $600 thousand and an SBA-backed $300 thousand LOC. Since then, Gary has been actively providing CFO support across financial reporting, budgeting, forecasting, cash planning, and strategic planning.
