Mergers & Acquisitions: $5MM for Security Monitoring SaaS Company

Growing your business through mergers & acquisitions A software company with a SaaS model for security monitoring was interested in acquiring competitor with advanced technologies to better their systems as well as improve their competitive advantage. The firm was referred to Altima Business Solutions by a banking group who was unable to assist with placement or funding opportunity. Upon review of the acquisition documents and due diligence on the company to be acquired, Altima Business Solutions was able to negotiate a better offering. The cost of acquisition was lowered and the capital required up front from acquirer reduced. It resulted in securing mergers & acquisitions round of $5MM through Revenue Based Funding. By showing synergies and how integration will not require high operations cost, the transaction allowed for no equity loss and favorable terms for borrower.   Running a successful business requires more than hard work. It also requires capital. Altima Business Solutions identifies on your behalf the right lenders and investors, and make the important connections. To discuss how our team can help your business achieve true results, please Contact Us   Altima Business Solutions is a full service Management Consulting Firm specializing in helping business owners maximize efficiency, profitability and company value to improve the lifestyle of employees and...
How Do Financial Statements Help Decision Making?

How Do Financial Statements Help Decision Making?

Even if you are a passionate and committed business owner, spending hours delving into the detail of your company’s financial performance may sound terribly unappealing.  Yet businesses are made and broken on the decisions that are made. Therefore, how to use the information obtained from your financial statements to make better business decisions begins with understanding of the main three financial reports used. The three financial reports that are usually used to make a business decision are the Balance Sheet, Income Statement, and Cash Flow statement.  It would be very difficult to use financial reports for decision-making if you are not aware of the purpose each serves in operating a business.  Obviously, said financial reports MUST be accurate and GAAP (Generally Accepted Accounting Principles) compliant. The Balance Sheet: The balance sheet is a summary of the financial balances i.e. assets, liabilities, and equity of a company at any GIVEN time. It depicts a picture of the strength of the company and days of working capital i.e. how easily can a company handle changes in revenue while staying afloat. Balance sheets can also identify other trends, such as how the receivables cycle works, how net profits are being used, and how often equipment is replaced. The Income Statement: The Income Statement, also known as Profit and Loss Statement (P&L), reflects the company’s revenue and expenses DURING a particular period of time.  The purpose of an income statement is to show how the company has performed, by listing sales and expenses, and the resulting profit or loss. The Cash Flow Statement: The Cash Flow Statement simply states the inflows and outflows of cash...

6 Things You’re Doing That You’ll Seriously Regret In 10 Years

6 Things You’re Doing That You’ll Seriously Regret In 10 Years Scrolling through my social media feed, I noticed a college friend’s photograph of his son’s dormitory. My friend and I had been thick as thieves during our undergraduate years, and now his son was leaving home, and roughly the age his father was when he and I first...

New Play on Aerospace Financing – Case Study

Cash flow problems are some of the most common difficulties small businesses encounter. Yet it doesn’t necessary mean that they are not profitable. Profit is the surplus after all expenses are deducted from revenue. Cash flow, on the other end, is the inflow and outflow of money from a business. It is the cash necessary to pay employees, operating costs and purchase inventory. This lack of liquidity is a common challenge for inventory based businesses.   Case Study: Industry: Aerospace   Subject: Aftermarket aircraft-parts supply company   Circumstance: Having to maintain a sizeable inventory to satisfy regular demand which ties up a large portion of its cash, the company approached Altima Business Solutions in order to quickly complete the purchase of expensive aviation parts to fulfill an out-of-the-ordinary order from one of its regular clients for a generous profit. Many aviation/aerospace companies with less than $5MM in sales find it difficult to maintain a solid banking relationships for lines of credit and other credit facilities. Banks have not fully engaged the aerospace/aviation industry as suitable risk. Much education must be undertaken by the banking community to fully understand the risk and high rewards that come from this sector. With that being said, Altima Business Solutions was able to develop and execute a solution for the company that allows for sustainable growth.   Solution: In less than two weeks, Altima Business Solutions structured a financing agreement with one of its in-network lenders and negotiated a term sheet to the satisfaction of the company. Solely based on the company’s existing inventory, the lender provided them with a $700,000 credit facility that has the capability to grow as...

Why Entrepreneurs Should Be Prepared to Survive a Contagious Zombie Outbreak

My first question to entrepreneurs is what makes their company different and I cannot tell you the number of times I hear: “We are an easy-to-use software with all the tools you need.” “We are a one-stop shop.” Nobody cares! That’s just the honest truth. It just means that compared to competitors you’ve put things together. Why is that important to your customers? The human brain is built to minimize effort. We rely heavily on what we know, on how we are used to do things and on what we expect them to be. Unfortunately, this means that other people (customers, employees, partners, etc.) aren’t making much of an effort to understand you, your product or your company. As leaders, it is your job to ensure that the company’s purpose is really being heard, so you can have the impact you deserve. That’s what strategy does: It determines what the company’s identity will be, why it will matter, and to whom. Stop thinking about it as a dusty plan sitting on a shelf. Strategy is the beating heart of your company. Most entrepreneurs go through their day in a zombie-like trance, lacking purpose and ultimately causing the contagion of apathy on everyone around them. As a result, many businesses fail due to the consequences of their unintentional actions. Entrepreneurs can learn a great deal from taking preemptive measures to avoid the spread of this infectious self-sabotage. Here are my tips on surviving a contagious zombie outbreak.   Assume everyone is contaminated It is totally acceptable to be paranoid! In today’s connected world, our daily media consumption is such that it has turned...