Source: Billy Fink, AxialMarkets A market downturn, skewed valuations, skeletons in the closet — there are hundreds of factors that can derail an otherwise perfect opportunity. While some of these disruptors are truly factors out of your control, there are other risks that you unknowingly may be bringing to your deals. Cognitive biases are defined as […]
Negotiation Psychology – Common Blind Spots 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 »
Jernigan Farms, a third generation business in Mount Olive NC, grows row crops and raises cattle, turkeys and swine. Doug Jernigan and family are known for their leading edge environmental practices. Jernigan worked with Clean Blue Energy of Winston-Salem NC to install and operate an innovative system that converts animal waste into distillates and electricity.
Scale Finance Closes $4.8 Million Growth Financing for Jernigan Farms Read More »
Source: Alan Patricof, Managing Director, Greycroft Partners In December 2015, Congress passed the PATH Act (Protecting Americans from Tax Hikes), a sweeping $1 trillion bill which, as part of an 887-page omnibus, would prove challenging for even the most astute of human beings to absorb, let alone many of those in Washington. Nevertheless, page 813,
Early Stage Investing Gets Favored Tax Treatment 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 »
Source: Brian Carthas, OpenView Partners Conducting a fundraise can be a big distraction from running the actual business. Requiring an investment of time and resources, fundraising has the potential to drag on for months on end (if not run properly). There is no time to waste with the wrong financial partner, so preparing to effectively
7 Questions Founders Should Ask VCs Read More »
Source: BizActions As you think about how to improve the performance and cash flow of your business, give major attention to the prices you’re asking for your existing products and services, as well as those you plan to launch in 2016. Companies must address four issues when selling products and services to make a profit.
Set Your Pricing Strategically & Systematically Read More »
Source: Jeff Stone On occasion, in the middle of running your business, you’ll run across an opportunity so good you can’t pass it up. The deal costs too much to finance from your own balance sheet, but it just makes sense. Now what? The answer is bridge financing – otherwise referred to as swing loans,
Understanding Bridge Financing – One Entrepreneur’s Journey Read More »
Source: Michael Greeley, General Partner, Flare Capital Partners Earlier this week the National Venture Capital Association (NVCA) released its own study of “inequality” – I mean the 4Q15 fundraising statistics which showed that 46 funds totaling $5.0 billion were raised, bringing the annual total for 2015 to $28.2 billion. Quite clearly the fundraising pace over
Venture Capital Update – January 2016 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.
