Pivot Consulting

Our expertise across the financial advisory spectrum gives us the edge for market assessment. A successful business plan requires confidence in a determined market and expert analysis of current market conditions.

What We Do

We help clients through in-depth analysis, completed by a dedicated team across markets, analyzing and reporting on all relevant factors. In addition, we help enable strategic growth through better integrated and operationalized mergers and acquisitions, JVs, and alliances. Specifically, we help companies refine their growth strategy, perform deal sourcing, conduct diligence and valuation, and implement M&A integration.

Early-Stage Strategic Advisory

Pivot Consulting is the single source for tracking early-stage success. Our proven success has created many successful young businesses through proven ROI-based financial planning, financial discipline, and consistent habits that produce results. Pivot Consulting was designed to meet the needs of start-ups through established metrics in KPI and analytical planning, financial reporting, business intelligence, and compliance..

Fractional CFO Services

Our experienced CFO practice provides services for organizations in a part-time, retainer, or contract arrangement, offering a company the experience and expertise of a high-end CFO without a full-time CFO’s in-house cost—salary, benefits, and bonuses—. Unlike a full-time CFO who oversees and maintains all general financial strategy or an interim CFO who performs CFO duties before or between CFO hires, our fractional CFO’s duties are typically on a project basis and precisely tuned to the company’s particular challenges or goals.

What We Do

Corporate valuations vary greatly depending on the industry. The Pivot team can help value and prepare your business for an eventual sale. Our value-added services include working directly with owners and management to increase the value of their business in a short period allowing you to walk away with a higher exit multiple. This often means expert consulting in everything from finance and marketing to business development and logistics. As a result, we view the valuation through the lens of an entrepreneur, not simply an unengaged consultant.

Valuing a privately held business can seem extensive when considering all of the possible valuation methods below.

Asset Value

Typically, applied to a situation where the value of the company’s assets exceeds its value from the income it produces. Examples are companies that are either struggling financially or have an asset-heavy model compared to its revenue from operations—rarely used in valuing a business for sale.

Discounted Cash Flow

Discounted cash flow is often used by professional buyers when determining the amount they want to pay for a business. This calculation is the present value of future cash flows of the company.

Multiple of EBITDA

Similar to Multiple of EBITDA, SDE, which stands for Sellers Discretionary Earnings, includes the business owners normalized salary and benefits. Primarily used in small business transactions where the owner is the key manager, the buyer is likely to be an individual who will replace the owner. Business brokers mainly use this method with company valuations under $5M.

Multiple of Revenue

Multiples of revenue are often quoted but rarely used by professionals, except in unique circumstances. Buyers and lenders are interested in cash flow much more than revenue. However, this can be misleading as other variables such as gross profit are not considered.

The valuation of a business includes financial calculations, but other factors are also crucial, including the number and type of potential buyers, terms, and the unique characteristics of your business.

Post-Merger Integration

Finding the right merger candidate and negotiating a deal are only the beginning steps in the path to deriving value from a transaction. Once a deal closes, it is essential to effectively integrate the companies and the structure of the entities to realize the intended benefits of the acquisition.

Pivot Capital experts help companies strategize and simplify operational structures and internal proceedings for their integrated group. We have experience in a wide variety of industries and sectors. Our consultants work closely with project management, human resources, procurement, and other strategic partners to help ensure all acquisition teams align and execute on the goals set by management.

As a start, Pivot Capital will calculate the one-time and recurring standalone run costs of changing the company’s structure and identify post-acquisition opportunities to inform the buyer or private equity sponsor. During the Sign-to-Close phase, Pivot Capital will provide directional oversight to prepare for Day One of the transition, leading Transition Service Agreement (TSA) negotiations with the seller and selecting the company’s new Financial and HR Information System platform.

New companies realize synergies from multiple businesses, offices, and teams. We implement a best-in-class organizational design that streamlines overall compensation, benefits, and expenses in the new company’s first 100 days.

We will establish a transitional governance structure that leads the exit activities, including creating a shared services IT organization that leverages internal resources and third-party partners.

Acquisition Integration Checklist

Portfolio level Integration Management – Planning inherent to all efforts
Cultural Alignment
• Establish clean room
• Evaluate synergy & opportunities
Communication Plan
• Stakeholders’ meetings
• Scheduled announcements
• Change management
Transaction Service Agreement – Integration objectives
• Project Plan
• Schedule
• Deliverables
Resources Evaluation
• Leadership Team
• Human Resources
• Vendor relationship
• Finance/Tax
• Information technology

Turnaround Restructuring

Volatile market conditions and business disruptions are hurdles to business continuity and organizational transformation. Organizations consider restructuring as a viable option. The frequency, pace, size, and complexity of bankruptcy and insolvency filings continue to increase. Companies, boards of directors, investors, lenders, and creditors worldwide engage Pivot Consulting for guidance and transformation solutions when faced with these situations or with business transformation opportunities. Creditors engage us for restructuring, corporate recovery, litigation support, interim management, capital markets advisory, due diligence, merger integration and carve-outs, valuation, tax advisory, financial management, and business transformation solutions.

Due Diligence

Pivot Consulting provides financial due diligence in situations involving investments, real estate, mergers and acquisitions (M&A) deals, and capital raises. Financial due diligence is a crucial assessment of the financial health of a business. The company’s historical and current financial performance is put under scrutiny to establish future forecasts and identify any potential risks.

Quality of Earnings

A quality of earnings report is a routine step in the due diligence process for private acquisitions. Net Income is not necessarily a 100% accurate indication of financial performance for a business. If a company reports prominent net income figures, negative cash flow may not be as financially sound as it appears. A quality of earnings report assesses how a company accumulates its revenues – such as cash or non-cash, recurring or nonrecurring.

Many key details are not outlined in a company’s income statements; therefore, a breakdown of cash is essential. Quite simply, if a company reports a positive net income but poor quality earnings, then acquiring the company may be a more risky investment than the company’s financial statements indicate. This assessment often affects if an acquirer decides to pursue a private acquisition.

Mergers & Acquisitions • Capital Raises Strategic Advisory

Chicago • Atlanta • Tampa

Pivot Consulting

What We Do

What We Do

Post-Merger Integration

Acquisition Integration Checklist

Turnaround Restructuring

Due Diligence

Quality of Earnings