We Put The Puzzle Together
e-bitda’s role is to manage the transaction process as your advisor and help the company be successful with its plans.
Expert Management Strategies
The objective of e-bitda’s services is to manage the merger & acquisition and/or the private capital sourcing process for clients by fulfilling the role of advisor. A client benefits by engaging e-bitda because we do all the corporate finance related tasks needed to complete a transaction which allows management to focus on planning and operating their business during the transaction process.
Growth Strategy & Financial Models
The first and most important task we undertake is to assist the client in producing their full Financial Model (five year income statement, balance sheet and cash flow statement projections) to complement the business plan's Growth Strategy. This will empirically document the amount of financing the company needs to raise from investors. We also understand what institutional investors are looking for in an opportunity – internal rates of return, market size, strategy, financial projections and complements to their portfolio companies. These issues help define how to present the material.
Source & Assess Potential
In an M&A transaction, e-bitda will source and assess potential target companies, conduct initial due diligence and negotiate a proposed transaction. In the capital raise portion of an M&A transaction or on a growth capital raise only transaction, e-bitda produces the Information Memorandum, Financial Model (IRR analyses), identifies a targeted list of prospective strategic institutional partners and forwards them a two page “Teaser”. We conduct all the follow-ups with interested parties, send out the Information Memorandum, handle initial inquiries, arrange phone calls and meetings for management, and manage the ongoing negotiations and process until closing. The preparation of all the materials to present to investors usually takes two to three weeks, depending on management’s availability and existing information prepared by the management.
Execution, Closing & Fees
For all of the services above, e-bitda charges a “one time” Work Fee to begin the assignment. When the client accepts a term sheet from a bona fide strategic or financial partner, e-bitda receives a Term Sheet Fee. Upon the successful closing of the transaction, e-bitda receives a Success Fee based on a percentage of the transaction value (M&A) or a percentage of the monies raised (capital raise only). The Work Fee and Term Sheet are credited against the Success Fee that is paid to e-bitda upon closing of a successful transaction. We can provide you with a sample engagement letter that expresses the fees and process fully. We don’t bill hourly or charge a monthly retainer for our services. We defer the majority of our compensation until closing.