White Papers

Many companies do not fail from a lack of profitability—they fail when they run out of cash. In fact, businesses can operate for a long time without being profitable but will collapse the moment their cash reserves are depleted. Effective cash flow management is...

When buying or selling a business, managing working capital is crucial for a successful deal. One important tool in this process is the working capital peg (“peg”) —a mutually agreed target level of working capital between the buyer and seller. The peg is essential...

In today’s dynamic environment, companies can operate and grow under various types of business models. Companies can tailor their business model to fit the demands of their industry and the resources at their disposal. Two of the more prominent business models that companies adopted...

With increasing EV/EBITDA multiples amid a space overflowing with equity capital, successful private equity firms (PEs) are shifting towards a model that emphasizes Value Creation. Some firms have separated this function out analogous to the division between “Business Development” and “Investment Team”, with names...

Value Creation can be driven by making use of various levers at the portfolio company level, including sales & marketing, operations, HR, IT, legal, and finance. Sapling Financial Consultants Inc. (“Sapling”) focuses its value creation driving activities around the financial planning & analysis (“FP&A”)...

Stress Testing is the use of financial models to test the resiliency of businesses through “stressed” situations, such as this crisis. The main purpose of Stress Testing is to plan remedying actions to put the company on a sound financial basis, and to answer questions...

A QoE is aimed at providing the buyers with an understanding of “How much money does the business sustainably earn”? A QoE analysis is a routine step in the due diligence process for private M&A situations, new investments, and follow-on financing deals. QoE typically focuses...