FINANCIAL ADVISORY

• Privately held Companies
• Revenues of > $10 million
• Growth-stage or Mature Businesses
  

• General Industrial or Manufacturing
• Energy (i.e., Oil & Gas, Utilities, Downstream, or Renewables)
• General Business-to-Business Services (which primarily serve the Manufacturing, Industrial or Energy Sectors)
• Other Technology or Technology-Enabled Businesses that Serve the Manufacturing, Industrial or Energy Sectors
  

One question that we hear from business owners and Board of Directors, on a pretty consistent basis, is: “What do we do now?” Even profitable, well-capitalized companies reach a point where they wonder how they will reach the next level of growth as the business evolves over time. While there is never a “one-size fits all answer”, DGP Capital’s team of experts have a deep understanding of the challenges that companies in growth mode face and are well-equipped to help find an answer to even the most challenging scenarios. Whether it’s growth via organic means, or via inorganic methods such as a deliberate acquisition strategy, DGP can get your team on the right path by developing a detailed, comprehensive strategy plan to capitalize on your company’s growth potential.

There are a number of important financial documents required in preparation for mergers and acquisitions (M&A), or other transaction-related events, such as debt or equity financing/re-financings. One example is the Confidential Information Memorandum. This provides details of the company, its operations, and financials. Interested buyers or investors will also require historical financial statements and forward financial projections. Other necessary documents will present sales data, customer lists, key assets, facilities, IP and other overviews of the company’s operations.

DGP Capital’s experience and expertise in this process can guide middle market businesses in preparing such data in preparation for extensive due diligence processes. Oftentimes, management teams need several months to compile the data, distracting key personnel from their day-to-day job responsibilities. DGP’s Corporate Financial Advisory Services can alleviate these burdens, but also can identify and assist in correcting deficiencies to avoid potential risks and delays during transaction-related events. An overlooked deficiency in a company’s financial reporting and information will delay, and may even derail, any M&A or financing transaction. DGP Capital’s Corporate Financial Advisory Services not only assists your management team in preparing its financial and operational data. It is our goal to make sure your company is presented in the best possible way.

Typical transactional due diligence, whether it’s for M&A, debt or equity financing, will focus on three areas: operations, financial and legal. This is a stressful time for management teams and owners responding to data requests and questions from the buyer. DGP helps its clients prepare for and respond to these requests.

Many prospective buyers, lenders, or investors commission an external firm to perform an in-depth analysis of company financials during Financial Due Diligence. This analysis, also known as a Quality of Earnings report, reveals if the company’s financial performance is as reported by the company, and via acceptable methods. DGP Capital’s Corporate Financial Advisory team will assist in exploring these matters well before a buyer, lender or investor submits their first due diligence request. Most management teams find it nearly impossible to continue normal operations while responding to in-depth buyer and investor due diligence requests. As a result, DGP can significantly alleviate the administrative and managerial burdens placed on management and ownership teams during any transaction process.

Understanding the factors which produce profitability and customer retention are not always obvious; sometimes, it takes an objective third-party to analyze your business to determine its strategic positioning. Many middle market businesses can reach significant levels of profitability, yet still have gaps in truly understanding their growth drivers.

In planning for future growth, or preparing for a transaction, being able to identify and explain these factors will be critically important. DGP Capital’s staff, as a result of their extensive experience in corporate finance at large corporations, are intimately aware of how to identify and analyze a company’s key performance metrics and growth drivers. Our Corporate Financial Advisory team works with your management team to help identify these factors and drivers, putting your company on the path for continued performance to reach your long-term objectives.

Your company’s capital structure, and its relative costs, can either support or hinder your growth and assets. A judicious balance between debt and equity can maximize the growth potential for a business, and improve its overall attractiveness to potential acquirers, investors, and lenders.

Smaller enterprises may not be equipped to periodically analyze and optimize the components of their capital structure. DGP Capital is well equipped and experienced in these analyses. Our Corporate Financial Advisory Services team can assist in both analysis and strategic adjustments to help optimize capital ratios and designed to improve your company’s financial position and shareholder value.

DGP Capital doesn’t attempt to be the specialist advisor for every niche within your company. After understanding your business, we prepare a strategic plan which may include recommendations for third-party or permanent resources necessary to improve operations and drive continued financial performance. When preparing for any transaction or strategic endeavor, an advisory team might encompass third-party legal counsel, estate planning, wealth management, accounting, and due diligence specialists.