Our broad expertise in financial advisory gives us an advantage in assessing the market. A strong business plan relies on confidence in the target market and expert analysis of current conditions.
What We Do
We assist clients with in-depth market analysis, conducted by a dedicated team that examines and reports on all relevant factors. Additionally, we support strategic growth through well-integrated mergers and acquisitions, joint ventures, and alliances. Our services include refining growth strategies, sourcing deals, conducting due diligence and valuations, and managing M&A integration.
Early-Stage Strategic Advisory
AFC Capital & Advisors provides a comprehensive solution for tracking and driving early-stage business success. Our proven methods have helped many young companies achieve growth through ROI-focused financial planning, disciplined financial management, and consistent operational habits. We support startups with KPI-driven analytics, financial reporting, business intelligence, and compliance to ensure measurable results.
Fractional CFO Services
Our experienced CFO team offers part-time, retainer, or contract-based services, giving companies the expertise of a high-level CFO without the cost of a full-time hire. Unlike a full-time CFO who manages overall financial strategy, or an interim CFO who fills a temporary gap, our fractional CFOs work on targeted projects tailored to your company’s specific challenges and goals.
What We Do
Corporate valuations can differ widely by industry. The AFC Capital & Advisors team helps assess and prepare your business for a future sale. Our value-added services involve working closely with owners and management to boost the company’s value quickly, enabling a higher exit multiple. This often includes expert guidance in finance, marketing, business development, and operations. We approach valuation from an entrepreneurial perspective, not just as detached consultants.
Valuing a privately held business can be complex, considering the many possible valuation methods available.
Asset Value
This method is used when a company’s assets are worth more than the income it generates. It’s common for financially struggling or asset-heavy companies and is rarely used for businesses being sold.
Discounted Cash Flow (DCF)
DCF is often used by professional buyers to determine what they’re willing to pay for a business. It calculates the present value of the company’s future cash flows.
Multiple of EBITDA
Similar to EBITDA multiples, SDE (Seller’s Discretionary Earnings) includes the owner’s normalized salary and benefits. This method is mainly used for small businesses where the owner is the key manager, and the buyer is likely an individual who will step into the owner’s role. It’s common for valuations under $5M.
Multiple of Revenue
Revenue multiples are occasionally cited but rarely relied upon by professionals, as buyers and lenders focus more on cash flow than revenue. This method can be misleading because it doesn’t account for factors like gross profit. Business valuation involves financial calculations, but other elements are also important, such as the type and number of potential buyers, deal terms, and the unique qualities of your business.
What We Do
Finding the right merger partner and negotiating a deal are just the first steps in unlocking value from a transaction. After closing, it’s critical to integrate the companies and their structures effectively to achieve the intended benefits of the acquisition.
At AFC Capital & Advisors, we help companies streamline operational structures and internal processes for integrated groups. With experience across multiple industries, our consultants work closely with project management, HR, procurement, and other strategic teams to ensure alignment and successful execution of management’s goals.
We start by calculating one-time and ongoing standalone costs of restructuring and identifying post-acquisition opportunities to guide buyers or private equity sponsors. During the Sign-to-Close phase, we provide oversight to prepare for Day One, lead Transition Service Agreement (TSA) negotiations, and assist in selecting new Financial and HR Information System platforms.
To maximize synergies from multiple businesses, offices, and teams, we implement a best-in-class organizational design that optimizes compensation, benefits, and expenses within the first 100 days. We also establish a transitional governance structure to oversee exit activities, including creating a shared services IT organization that efficiently leverages internal and third-party resources.
Acquisition Integration Checklist
Portfolio-Level Integration Management – Core Planning Steps
Cultural Alignment
- Set up a clean room
- Assess synergies and opportunities
Communication Plan
- Conduct stakeholder meetings
- Schedule announcements
- Manage organizational change
Transaction Service Agreement (TSA) – Integration Objectives
- Develop project plan
- Create schedule
- Define deliverables
Resource Evaluation
- Leadership team
- Human resources
- Vendor relationships
- Finance and tax
- Information technology
Due Diligence
AFC Capital & Advisors provides financial due diligence for investments, real estate transactions, mergers and acquisitions (M&A), and capital raises. Financial due diligence is a critical review of a company’s financial health, examining historical and current performance to create accurate forecasts and identify potential risks.
Quality of Earnings
A quality of earnings report is an essential part of the due diligence process for private acquisitions. Net income alone may not accurately reflect a company’s financial health. For example, a company might report strong net income but have negative cash flow, indicating potential issues.
This report examines how a company generates its revenue—whether cash or non-cash, recurring or non-recurring. Since many details aren’t shown in standard income statements, analyzing cash flow is critical. If a company shows positive net income but low-quality earnings, acquiring it could be riskier than the financial statements suggest. This evaluation often influences an acquirer’s decision to proceed with a private acquisition.