Corporate Finance Advisory

Capital is scarce and should be allocated with care. We help you connect your operational strategy to your capital strategy to better allocate capital across your company on terms accommodative to your business.

Have you assessed the return on capital employed of your business on a divisional basis? History has shown us that revisiting divisional performance can lead to material value-creation opportunities. The obvious one is getting out of underperforming divisions that consume a disproportionate amount of management time to return on capital.

Valuation

Our CBV team assist clients with valuations for a range of circumstances. In the context of a sale, to price acquisitions or if a valuation is required outside of a transaction context for tax, other business, or personal reasons.

Most of the time a pricing analysis (i.e. valuation analysis without a formal report) will suit our clients specific valuation needs and where a valuation report in accordance with CBV standards is required, we can issue independent conclusions of value on a Calculation, Estimate or Comprehensive report basis.

The different level of CBV valuation reports is similar in nature to the level of investigation involved in a Notice to Reader, Review or Audit of financial statements. The level of review and analysis is highest in a Comprehensive valuation report though the same level of valuation work would be commonly applied to a pricing analysis if a report is not needed.

Financing Your Business

Your relationship with your lender is one of the most important ones for your business but sometimes relationships change or changes in market conditions influence you to revisit your capital structure and the best relationship moving forward.

With our market knowledge, we can help you assess your options, prepare a financing memorandum, solicit proposals, evaluate which offer best aligns to your objectives and close the transaction.

If you have a strong balance sheet and a history of predictable cash flow, a shareholder distribution may be obtainable under certain conditions.

The higher your annual free cash flow or EBITDA and the longer your track record at current levels, the more you will likely be able to borrow to fund a dividend to shareholders.

We may be able to help you arrange the capital you want to diversify your financial interests through a dividend recapitalization if the following circumstances exist:

A strong management team
Businesses with EBITDA greater than $2 million for at least 2 years
Reviewed or audited financial statements
A financial reporting environment capable of producing reliable quarterly financial statements on a timely basis for lender reporting

Businesses that do not check these criteria will have more difficulty than others in obtaining bank financing, unless there are mitigating circumstances such as SaaS companies with ARR greater than $1 million / year whom are more commonly being able to access chartered bank financing or facilities through private market lenders.

Stressed or Distressed

Our team has a variety experience advising owners and secured creditors in mandates ranging from looksee to court supervised restructurings. The most common situations where we can serve are:

Independent looksee mandates for off-covenant clients of the bank consisting of comprehensive business reviews or specific scope mandates.
Creating comprehensive turnaround plans including options assessments (bank and client) ensuring value preservation/creation for the benefit of all stakeholders.
Assisting companies with preparation and timely delivery of financial information, as required (i.e. short-term cash flows, status updates, progress tracking).