ALDA & Associates International, Inc. Newsletter
January/February 2012
Core Client Services
by David H. Fater
Introduction
ALDA & Associates International, Inc. is a boutique business and financial consulting firm committed to assisting companies in Capital Formation, Capital Allocation and Profit Optimization. While our primary focus is to assist scientists and physicians change the world of healthcare, our experienced consultants can asssit companies in a wide variety of industries. All of our consultants are senior experienced business leaders from a variety of disciplines and backgrounds thus enabling ALDA to bring a cross-section of talent and experience to any situation.
While the broad variety of our services are listed elsewhere in this newsletter and on our website, we thought it would be helpful to highlight what we consider our "Core Client Services".
Valuation
Business issues can rapidly overwhelm even the most astute managers. Financial planning, tax matters, and accounting and profit improvement issues are particularly complex. Every business decision should be made with the objective of enhancing stakeholder value. This is a basic business premise that can often be overlooked in today's complex business world. As a strategic partner, ALDA is uniquely qualified to assist you with these business issues as we become strategic partners with management, the Board of Directors and stakeholders to drive the enhancement of value.
Additionally,we also perform valuation services to assist in the determination of strategic value of the existing business, businesses being acquired or divestitures. These valuations are performed by experienced professionals who understand the nuances of valuation and are familiar with a variety of businesses. Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business as well as in the allocation of purchase price in an acquisition. ALDA provides an independent resource for this critical valuation objective that can be relied upon by management as well as the independent auditors.
Merger and Acquisition Due Diligence
Whether you are thinking of acquiring or selling a business, ALDA can evaluate the financial consequences of your transaction. Through acquisition investigation and financial analysis, ALDA can measure the risk in a proposed merger or acquisition and develop specific recommendations as to what tactics would be most advantageous to you. We can assemble a knowledgable and expert due diligence team in 24 hours and can complete the due diligence and reporting within 72 hours if circumstances dictate. Obvious advantages of using ALDA are the fact that all of our consultants have industry experience and expertise in a wide range of industries and fields thus allowing the due diligence to be expanded beyond just the financial information. This valuable operating due diligence can identify operational issues that may be encountered post-acquisition that a financial due diligence investigation may not uncover. This adds value to the due diligence that may be instrumental in both evaluating the merits of the acquisition as well as its pricing.
Merger and Acquisition Integration
How will the acquisition be integrated into the overall business? All too often, acquisitions fail because no planning prior to the acquisition was given to this critical issue. Post-merger integration of a any business with managed expectations on both sides is one of the most critical factors for success and the one that is most likely to be overlooked. As part of our due diligence process, we also start the integration planning process identifying those areas which will require special attention "post-deal". Our integration planning in the past has resulted in successful integrations as well as situations where we were retained for as much as 22 weeks after the deal to ensure that the acqusition was properly integrated and managed during the process.
Capital Raising
ALDA can help you to assess and determine the optimum capital structure of the company, which involves complex considerations- even before the challenge of successfully raising the capital is addressed. ALDA has experience in determining appropriate capital structures and successfully raising the required funds enabling us to develop strong relationships with institutions interested in financing businesses and helping companies to smoothly implement their business plans. We also develop innovative and creative financing structures which help get the deal done. In today's evolving business and capital environment (and considering these are the worst financial markets since the great depression), cookie cutter financings have a low probability of success. Our creative solutions often can save the day in obtaining much needed capital.
ALDA Rapid Solutions (ARS) Framework
ARS is a results-oriented, quick payback approach to solving business problems and seizing opportunities. The ARS process co-designs and facilitates desired improvement in an accelerated timeframe. See the separate article and case study about this elsewhere in this newsletter.
Conclusion
We look forward to assisting companies increase their success through one of our various services.
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ALDA & Associates International, Inc. is a business and financial consulting firm. For assistance, please contact an ALDA & Associates International, Inc. Principal.