HRC provides consulting services to companies seeking support in bolstering their accounting and finance capabilities, often utilized to prepare oneself for an M&A transaction, and or to enhance the quality and timeliness of the financial reports.
HRC helps founders properly prepare for M&A transactions where they are seeking to maximize value from a business they have built over 5-10 years+. HRC stresses preparation well in advance of a transaction so when the right opportunity presents itself, which can occur very quickly, founders have their ducks in a row, in a polished, presentable fashion. The basis elements of such readiness includes proper storytelling of the business, operationally and financially, in its current and future state, along with supporting financial reports and models that substantiate the story. HRC has worked with founders in establishing such readiness 6-24 months in advance of a desired transaction.
HRC provides valuation services to Companies to facilitate partnership buyouts and M&A transactions. HRC will only provide such services to companies in its core vertical focus areas, including technology services, and software, leveraging 20 years of M&A and capital raise expertise. We provide a blend of technical valuation analysis coupled with comparable analysis, as well as detailing key value drivers which produce real-world enterprise and equity values specific to the private markets.
It’s very common for sub-scale, high-growth businesses to be without a CFO until reaching $25-50mm in revenue. HRC supports such companies and their founders with CFO-level guidance and execution, to better understand their businesses, and make informed decisions. This includes defining and understanding key performance indicators, key growth and value metrics such as CAC, LTV, churn, net revenue retention, revenue/margin by type, as well as trend analysis.
Inbound M&A Interest Analysis
Many of our clients and entrepreneur friends get inundated with acquisition interest, and do not have the time or attention to evaluate the quality of such potential investors or acquirers, yet are interested in establishing dialogues with qualified, strategic parties. In such cases, HRC can perform a formal analysis on the interested buyers that came inbound, to help assess the quality and the required prioritization of such parties.
HRC is partnered with an outsourced accounting firm that specializes in accounting “clean ups” that ensures a company’s financial reports are in GAAP accrual, which is critical prior to a company receiving an investment or exiting. These accounting services also properly code and categorize revenue and expenses to ensure proper future reporting on a go-forward basis. HRC strongly advises entrepreneurs to enhance their accounting capabilities at least one year in advance of a desired transaction.