In the world of business, the ultimate goal is securing a return on your investment. Whether you're running a long-standing family business, a beloved mom-and-pop shop, or a thriving tech start-up, your journey is fueled by the desire to generate profit, build equity, and eventually reap the rewards of your hard work and investments.
However, the path to cashing out your business is complex, and ensuring a fair valuation is a task not to be taken lightly. This is where the expertise of a seasoned sell-side advisor becomes invaluable. Hiring the right advisor can mean the difference between losing substantial sums and achieving a lucrative sale. Consider Hyfin as your trusted partner for this crucial journey.
Why Choose Hyfin for Your M&A Exit?
Industry Expertise
Hyfin boasts experience across multiple industries including Technology, Medical Devices, Manufacturing & Distribution, Retail, Aviation, and Service industries. We go beyond the traditional CPA firm by offering accounting & financial reporting, CFO Advisory, M&A Consulting, and other ad hoc financial and data analytics. We are equipped with the knowledge and resources to help your company go to market and arm you with the tools to secure the best valuation.
Quality of Earnings Assessment
Selling your business begins with understanding its true financial standing. Hyfin offers a Quality of Earnings assessment, which can help unveil your company’s normalized performance, discover additional pro forma adjustments, and enable you to make data-informed decisions during negotiations. A Quality of Earnings assessment enhances credibility with buyer and preempts their due diligence by addressing key questions upfront, streamlining the process, and facilitating a smoother transaction.
Financial Due Diligence
The due diligence phase of the transaction can be a minefield, potentially uncovering financial discrepancies that can significantly impact your valuation. In a recent case study, our team discovered during due diligence incorrect Bill of Materials (BOMs) which had been overstating inventory for an extended period. Our team pivoted, recalculated the ending inventory based on correct BOMs, conducted a physical inventory count, and estimated the impact on Cost of Goods Sold (COGS) across various periods. Hyfin proved the impact was minimal and saved the seller $2 million purchase price reduction.
Sales Purchase Agreements
Hyfin has experience navigating the Sales Purchase Agreement and reviewing key financial terms and schedules for accuracy, such as the definition and calculation of Net Working Capital or indebtedness. We can help you negotiate key terms, reps, and warranties, non-compete agreements, or retention bonuses for your employees, among other crucial deal terms.
Net Working Capital (NWC)
Net Working Capital (NWC) can be complex to navigate on your own, but our team can help you understand its implications and help you determine the appropriate NWC target to be transferred at the time of the sale, which is critical to a smooth transition and continuous operations. In a recent case study, a Hyfin client's choice to forgo full sell-side representation led to post-close price adjustments of over $1mm in favor of the buyer due to NWC underperformance, sparking prolonged legal disputes, withholding of the indemnity escrow, and a possible purchase price refund from the seller to the buyer.
Access to a Vast Network
Hyfin is connected to an extensive network of potential buyers, including strategic investors, private equity firms, and high-net-worth individuals. Our industry connections can help you not only secure a fair price but also find a buyer who aligns with your business vision.
Selling your business is a monumental decision, and having the right sell-side advisor can significantly impact your outcome. Hyfin brings a wealth of experience, a tailored approach, and a commitment to securing the best possible results for your business sale. When it comes to safeguarding your financial interests and securing your livelihood, choosing Hyfin as your sell-side advisor could be the most strategic decision you make.