Our purpose is to lift your Company’s value so it will meet your expectations
ABOUT
enso solutions
You have poured everything into your company, but you don’t know whether the valuation will satisfy your financial goals. You are not alone. Most business owners do not actively gauge the worth of their business and are often disappointed when it matters most.
At Enso, we are a unique financial advisory firm providing solutions tailored to bridging gaps that would cause valuation concerns during an investment or transition process.
Our services are “hands-on” and results-oriented focused on the implementation of long-term viable solutions. We will be in the trenches with you and pride ourselves in treating your business like our own – passionately growing and protecting your business in times of opportunity and/or adversity.
For us, it’s about building enterprise value with shared convictions and trusted accountability.
When
would you need us?
- Exit planning is needed so that the outcome from transitioning your business will meet your expectations
- You have received unsolicited bids to acquire your business and need direction
- You require sincere, open and honest financial evaluations
-
The value of your company must be increased within a defined period
- Sudden and major change requires crisis management
- The company is experiencing rapid growth and there is a need for an external CFO ASAP
- You have lost key financial personnel, and having the right people on the team is imperative
- The Company is facing cash flow issues and there is an urgency to improve working capital and strengthen the balance sheet
- The company’s financial reporting cannot accurately measure performance in a timely manner
- You are spending too much time in financial management and not enough time focused on growth
WHAT
we offer
CFO Advisory
- Lead the implementation of timely internal and external financial reporting with appropriate systems, internal controls and risk management processes
- Manage compliance requirements including annual audits, corporate taxation and reporting to banks and investors
- Source, negotiate and structure optimal debt/equity capital to strengthen the balance sheet
- Improve cash flow management focused on working capital processes
- Implement robust budgeting and cash flow forecasting for strategic financial planning and analysis
- Lead the adoption of key performance indicators to enhance strategic decision-making
- Recruit and develop staff to stabilize the accounting and finance function
- Manage key stakeholders including family ownership, executive management, investors, and lenders
Transitional
-
Conduct a strategic valuation of the Company to help establish benchmarks so owners know where they stand
- Develop a succession plan to ensure continuity of legacy, people, knowledge, systems, and processes
- Facilitate sensitive discussions with key stakeholders (family /management) to eliminate potential conflicts
- Perform internal due diligence on the integrity of the Company’s accounting, tax and operations to withstand the scrutiny of a transition process
- Integration of corporate acquisitions to accelerate the realization of synergies
- Advocate and champion change to accommodate growth, transition and improved performance
Transactional
- M&A execution through our affiliated company, Nextgrowth Corporate Finance Inc.,
- Develop a strategy to maximize the attractiveness of the Company and optimize valuation and terms
- Lead a selling process to attract qualified Strategic and Financial Buyers
- Prepare and guide the Company for sell-side due diligence
- Assist in negotiations of definitive Agreements
- Provide support to resolve post-transactional issues
- Design the framework for executable management buy-ins and shareholder buyouts. This includes raising the necessary capital to facilitate the transaction
Turnaround
- Provide crisis management by identifying key turnaround drivers and creating solutions for sustainable recovery
- Restructure departments and divisions with a focus on dealing with underperforming assets to improve liquidity and cash management
- Improve debt and equity capital structure by negotiating refinancing alternatives with creditors, lenders and investors
- Lead stakeholder management initiatives to restore confidence and allow time for the Company to maximize recovery
HOW
Does It Work
Each Business is Unique
Our approach and service delivery are tailored to suit your needs from the degree of active participation in ongoing management to the role required to lift the value of your Company, we will own both the problem and solution with you.
Case Studies
The Client is a National Retailer of Children’s Toys with stores throughout Canada. The Founders had built a successful Canadian retail chain from the ground up for over two decades and decided that it was time for retirement. They understood the importance of buyer’s due diligence and knew potential buyers would closely examine their business.
To prepare for the divestiture, we were engaged to act as the CFO for the Company with one of the primary focuses on organizing legal and financial documents, contracts and permits to ensure that they were in order and easily accessible. We also reviewed internal and external financial information produced by management to ensure that it accurately reflected the company’s historical performance and developed robust financial forecasts and Key Performance benchmarks to demonstrate the growth and scalability of the business. This provided significant assurance to potential buyers as it demonstrated that the business had a strong foundation of documentation and risk management and could operate smoothly under new ownership. In our capacity as the CFO, we were able to leverage the buyer confidence obtained from due diligence and negotiate a higher valuation multiple.
The Client is an International Food Manufacturer. From humble beginnings of a 5,000 sq.ft facility, The Founders had grown their food manufacturing business over the past 25 years operating now from a modern 125,000 sq.ft fully automated plant. Their food products were sold in Canada, United States and Mexico. For various reasons, the Founders had decided that it was time to exit the business.
We prepared the business for the exit process by performing an assessment and valuation of the business to identify areas of strengths, weaknesses, risks and potential opportunities. From this evaluation, we focused on improving operational efficiencies and financial reporting by implementing a new ERP system which automated production scheduling, purchasing, inventory management and improved quality control processes and process documentation.
We also strengthened the balance sheet to ensure that working capital and debt levels are optimized. This involved implementing a cash management discipline through better cash flow forecasting and negotiating better lending terms that better matched short- and long-term needs.
In addition, we prepared the management team which included family members for succession and transition by better defining roles and responsibilities and setting performance expectations through training and establishment of Key Performance Indicators in core departments.
This meticulous preparation and emphasis on the implementation of quality systems and processes together with preparing the management team for transition played a significant role in attracting serious buyers and ultimately securing a favourable transaction.
The Client is an International Digital Technology Company. The Founders had successfully developed a technology start-up which had gained significant traction over the past decade. Their digital technology platform and solutions were deployed in over 7,000 consumer retail stores throughout Canada and United States. The Co-Founders decided it was time to sell and pursue other ventures. They understood that presenting their business in the best light would be essential to attract buyers.
We were engaged to prepare the business for exit and focused on improving financial reporting to ensure that it would meet due diligence requirements as the accounting department was headed by one of the founders who was not experienced in accounting principles. We successfully led the reconstruction of historical financial statements and information that would withstand the rigours of third-party examinations. We also prepared detailed financial projections and market analysis to highlight the Company’s prospects and the potential for expansion into new markets. Additionally, we worked with management on strengthening relationships with existing clients especially with contract documentation as we knew that a robust and reliable customer base would be essential to potential buyers. Our comprehensive approach to presenting the business growth potential supported by reliable historical financial information led to a premium valuation and a successful Closing.
These case studies illustrate the importance of thorough preparation when exiting a business. By addressing key areas such as financials, operations, legal documentation, management depth and growth potential, business owners can enhance corporate value and make them more appealing to potential buyers. Each business owner’s experience may vary based on their specific industry, market conditions, and individual circumstances, but the underlying principle of diligent preparation remains crucial in achieving an exit at the valuation and terms that meet shareholder expectations.
WHY
Work with Us?
Proven
With over 25 years of CFO and M&A financial advisory experience across diverse industries and stages of corporate growth, our service goals remain simple – “maximize valuation”.
Flexibility
We can tailor our services to suit your Company’s requirements either as an interim engagement or a long-term partnership. And within each assignment, we offer fractional to full-time commitment depending on urgency and need.
Accessibility & Responsiveness
We are there when you need us most. You will have immediate and ongoing access to our expertise and advice.
Value Lift
We offer a range of services that will improve your Company’s valuation and the bottom line ensuring a positive return on your financial and time investment.
Team Build
We work collaboratively with all stakeholders acting as a bridge when there are conflicting interests, views, or agendas.
Trust
We deliver what we have promised, giving conflict-free advice, and executing with our client’s best interest as our only priority.
WHO
We Are
Hi, I’m Alex Keung. I started Enso dedicated to being able to make a real difference in helping business owners realize the value they have built.
Over the past 25 years, my career has focused on CFO advisory and executing M&A transactions. Through these experiences, I recognized that most of my clients were not adequately prepared to sell their businesses when they wanted to exit. The frustrating truth is that we were often engaged to sell the Company when there were significant gaps that made the Company less valuable or worse, did not qualify them as a suitable investment candidate. It became quite evident that much more lead time was needed for preparation to avoid disappointment later during the exit process – when the seller may lose their leverage. To me, it is not just about executing M&A transactions but taking ownership and accountability in overcoming issues and challenges in the trenches with the management team.
After graduating from the Schulich School of Business, my professional journey started with Deloitte where I earned my CPA. I later focused on M&A at PwC and HSBC Securities and led a corporate finance practice catered to owner-managed privately held companies at a regional CPA firm based in Toronto and Montreal. Having held CFO positions with high-growth companies in technology, manufacturing, health services, gaming development and global travel operations, my professional experiences have taught me that there will inevitably be both “ups” and “downs” in a transition process. Whether it is simply improving the business or preparing it for an exit, the keys to winning are to be able to make informed decisions when faced with adversity and not be afraid to embrace change.
I have been extremely fortunate to have worked with passionate Founders and their management teams in transition and exit processes that celebrated the great companies that they have built. I love what I do as it brings me great joy in helping business owners achieve life-changing exits for themselves, their families, and their employees.
Insights
The best way to predict the future is to create it
– Peter Drucker
Exit Planning – Keeping the Endgame in Mind
Business owners have often made the critical mistake of ignoring exit planning until it is too late. The lack...
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Demystifying Due Diligence
Due Diligence is the evaluation process where interested buyers gain a thorough understanding of the business that they would...
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The EBITDA Valuation Trap
EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortization have been widely used by corporate finance professionals as a...
Read MoreSometimes a fresh perspective is what you need to move your business forward. Contact us for a no-obligation initial meeting