If you are selling a business, the buyer may want to pay part of the price through an Earnout provision. This is a contractual arrangement in which the seller receives additional payment in the future if certain financial goals are met. In other words, part of the price is contingent on the performance of the […]
Surviving an Earnout Provision While Selling Your Business Read More »
Source: Forbes Public investors just got a taste of what venture capitalists know from experience. Venture capitalists sell the sizzle of investing in the next Google or Facebook. But a devastating report by the Ewing Marion Kauffman Foundation shows the reality is most investors would do far better by investing in a plain-vanilla stock index.
Venture Capital is Glamorous, But Returns Are Dismal Read More »
Source: Suzanne Miller U.S. M&A volume may be at the lowest level since early 2003, but technology deals are on a tear. Cisco Systems Inc., Oracle Corp., Microsoft Corp., Facebook Inc., SS&C Technologies Holdings Inc. and Dell Inc. have already cranked out $11 billion worth of deals among them through mid-April, while the industry has
The Trouble with Technology M&A Read More »
A premium multiple is hard to come by and harder to keep. Executives should worry more about improving performance. Source: Susan Nolen Foushee, Tim Koller, and Anand Mehta Source: Corporate Finance Practice Earnings multiples, particularly the price-to-earnings (P/E) ratio, are a common shorthand for summarizing how the stock market values a company. The media often use
Why Bad Multiples Happen to Good Companies Read More »
Scale Finance LLC announces the hiring of 10 new professionals during the first half of 2012 – CFO Dan Gotte, CFO & Transaction Advisor Mike Smith, Senior Controller Greg Turner, and Accounting Manager Tammy Tarini in Charlotte CFO Mike Rowe, CFO Paul Lockett, and Senior Controller John Schefke in the Triangle Senior Controller Lynn Irwin
Scale Finance Growth Continues in 2012 Read More »
As part of our work to ensure policies that catalyze angel investing, ACA has endorsed the Startup Act 2.0, a bi-partisan bill in Congress aimed at creating an environment that leads to more innovative startup companies and their related jobs. ACA endorses this bill for a few reasons: It would make permanent the 100 percent
Startup Act 2.0 – Angel Capital Association Supports Read More »
Investment Led by Insurance Industry Veterans CHARLOTTE, NC – Yodil, Inc., a provider of business intelligence (BI), data analytics, and operational and management reporting to the insurance industry, has completed its second round of investment funding, led by a private group of industry-leading veterans. Scale Finance LLC advised Yodil throughout the process of successfully raising
SF Closes Second Round of Funding for Yodil, Inc. Read More »
This story appears in FORBES magazine, accompanying the cover story, Inside Amazon’s Idea Machine. With the passing of Steve Jobs, Jeff Bezos is now tech’s leading philosopher-CEO. His advice ranges from what to read (give the Declaration of Independence a shot) to how to deal with stress (“Laugh a lot”). Mostly, though, Bezos sticks to
Bezos Leadership Lessons – Still Day 1 of the Internet Read More »
Source: Michael A. Greeley5/17/12Follow @greels1 So here is my obligatory post on Facebook…which will be the most spectacular IPO of a venture-backed company in the history of mankind…and it just priced tonight. The shares priced at $38 giving the company a market cap of $104 billion fully diluted, raising $16 billion in proceeds. Of the 421 million shares
Does Facebook Solve VC Industry Woes? Read More »
By Margaret Heffernan, Entrepreneur and Author Although private companies have no legal obligation to create advisory boards, many of the most successful companies have them. Primarily this is because they’ve taken investment from individuals or firms for whom oversight and involvement is part of the price of the deal. But even firms owned wholly by their
Is Your Board of Directors Useful? 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.
