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Business Plans and Financial Analysis
Business plans (often called Information Memos or
Transaction Memos, or Prospectuses) sometimes fail
to establish a compelling reason for an investor to
go beyond a cursory review. Some are bulked up
with extraneous detail; others are so superficial
that they fail to attract a reader's interest.
Professional investors see so many proposals that
they tend to be skeptical of hyperbole, in essence
always looking for a reason to say “no.” For
them, there is always another promising opportunity
just around the corner.
Crallé & Company has drafted hundreds of plans and
presentations dealing with a wide variety of
industries, usually in conjunction with a
fund-raising or sale of a business, and so have been
tested against real-world criteria.
Valuations and Financial Analysis
Business plan creation depends on financial analysis
and valuation, business writing skills, and deal
structuring skills.
Valuation of middle-market operating companies is
integral to everything else we do. Whether a
stockholder is effectively in control or in a
minority, we will render an opinion tempered by
real-world experience, based on rigorous fundamental
analysis of finances and operations.
We approach valuations differently from appraisers
and CPAs. Appraisers, for example, rarely also
have the acumen to value an operating business;
their skills tend to be limited to comparing
commodities (real estate, machinery & equipment), or
rare static assets (artwork, for example).
CPAs may have the technical knowledge to comply with
regulatory rules (SEC and FASB) for reporting past
results, not evaluating future prospects.
By contrast, our valuation approach is tempered by
the insights that come from knowledge of the
intricacies and nuances of actual transactions,
whilst mindful of the theoretical and academic
underpinnings (such as real option theory,
capitalization of excess value with discounting
based on the capital asset pricing model, and
relative value analyses, of course).
Due Diligence and Financial Analysis
Due diligence reviews are an extension both of
financial analysis, picking up where CPA financial
reports end, and the operational insights that come
from having performed the function many times
before. Often a first step is to restate CPA
external reporting to reveal policies designed to
minimize taxes, particularly in privately held
companies.
Crallé & Company is thoroughly experienced and
skilled in analyzing the complexities that guide
real-world transactions.
We are available to consult in situations and
formats as diverse as fairness opinions, expert
testimony, acquisition or divestiture positioning or
negotiations, marital dissolution, buy-sell
agreements, and litigation support.
You may be interested to see Representative
Assignments
here.
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Crallé & Company, Incorporated
Bronxville, New York
914-779-3331
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