SERVICESHRC provides comprehensive advisory services to growth companies seeking to pursue, and execute on, strategic transactions. We act as a member of the executive management team, working attentively with the owners, providing sophisticated guidance on M&A/financing options, expected valuations or pricing, structures, and most importantly the likelihood of a successful close. This includes proper financial and operational positioning, running thorough processes to qualified prospects, strong organization, and consistent expectation management throughout each step of the process.
HRC advises business owners on a variety of liquidity transactions including partial liquidity from a private equity investor, or an outright sale from a strategic acquirer. This is accomplished by developing deep relationships with entrepreneurs well in advance of a contemplated transaction, sometimes for many years prior, providing insights on the market and key value drivers, such as financial performance, operational positioning, the growth story, margin profile, and the where the company fits strategically within the target buyer universe. We run thorough, tactical, and organized processes, that strive to maximize exposure to the appropriate parties, while minimizing managers excessive involvement, keeping them engaged on the organic growth. Our knowledge and focus of our target verticals provide a strong advantage of knowing how to best position companies for the desired valuation, as well as knowing which acquirers and investors are most active in the space, and properly capitalized.
HRC provides buy-side advisory services to companies seeking support in identifying, evaluating and executing add-on acquisitions, which may be transformative from a growth and value creation perspective. This includes devising a strategy of what types of targets are most synergistic, and thoroughly canvasing the market for those who fit the criteria, are interested in being acquired, and are at the right valuation. We then provide vetted, teed up opportunities, with sufficient operational and financial background information. Further, HRC provides execution support around due diligence, building and maintaining complex financial merger model models used for capital raise purposes, and other tasks related to the deal process. Many company owners find significant value in working with HRC in this regard, as we can add significant horsepower and expertise to the company’s existing internal efforts.
HRC advises entrepreneurs on securing outside capital, be it private equity, or non-traditional debt, ranging between $5-50 million. This includes guiding companies on the cost of capital (debt vs. equity), the foreseeable challenges, types of structures, and ultimately what is advantageous to the company and its shareholders. Over the years HRC has amassed a deep rolodex of debt and equity investors highly active in the technology verticals we target, many of whom have had successful past investment experiences, and are looking to redeploy capital in similar companies. Such savvy investors can provide true value-add to business owners in addition to capital, as well as often providing a more full valuation, due to their already understanding of the business models, growth potential, and exit values.
Like many founders, running your business and making sure you hit your projections, to achieve your desired valuation, is a top priority. However, you’ve started engaging in discussions with buyers or investors, and the information requests are beginning to ramp up quickly. Or perhaps you have an offer in hand and received a due diligence list, which you’ve never seen so many document requests in your life! How can you be expected to run your business, and generate such a vast amount of information in parallel? How should this information be presented to best represent your company’s value? How can you be certain you are talking to the best investors or buyers? What if all this time spent, negatively affects your business, and you don’t end up closing the transaction?