The challenge

Looking back to understand the past is important—but looking forward to predict a future where your company’s value is increased is critical. Our client—an award-winning premium entertainment facilitation company based out of Southern Ontario—consistently reviewed what had happened each year but didn’t have the capability to understand what could happen. Their Director of Finance retired, and they needed not only more, but better data to make financial decisions that would impact their future.

 

 

How we helped

Built a bespoke financial model to help predict rolling 12-month earnings and cashflows, maintained with our assistance.

Leveraged the data produced by the financial model to plan and provide strategic advice during the due diligence process when the company was approached by a competitor, thus creating a higher selling price.

Continued supporting the company by assisting them with securing grants and divesting their asset post-sale.

Our client was used to reviewing their historical data year after year to provide their stamp of approval—but didn’t have a clear view of what their future performance could look like. We advised them to help evolve their financial outlook and become more proactive instead of constantly reactive. Our team built a bespoke financial model to predict rolling 12-month earnings and resulting cashflows, which equipped them with the tools to plan their sales pushes and became a part of their reporting culture.

A sophisticated buyer requires sophisticated financial information and when opportunity came knocking in the form of a large-scale Canadian investment company, they were ready. The financial model was important during the due diligence process because it demonstrated cash flow potential, thus maximizing the company’s value to the buyer and ultimately the price paid to the founding family. The owners weren’t originally looking to sell but were appropriately prepared thanks to the support of the model.

The impact

Predicting the future is no easy task—but the right tool can anticipate how a company’s performance might be affected by future events or executive decisions. The financial model we built helped our clients look forward.

They were able to gain a holistic view of the business, understand what could happen, and ultimately maximize its value when they decided to sell.

Our team became trusted advisors where the owners looked to us for support with any business-related decision, including helping to secure grants. Since then, we’ve continued helping the family with divesting their asset.

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