While some of our advisory engagements are finite in length and scope, we proudly serve a number of family investors on an ongoing basis and have assumed primary responsibility for the evaluation and management of their illiquid investment efforts.
DEAL SOURCING AND SCREENING
Selecting suitable investments for further review, based upon your articulated criteria.Most clients have an excess of potential investment opportunities, yet they struggle to efficiently filter the high-quality deals from the rest of the noise. Given the inherently high returns of well-performing private equity investments, the majority of returns are actually made by pre-emptively avoiding the poor deals. We begin by assisting clients to articulate their personal investment thesis, which is ultimately synthesized into a “target investment profile.” Our approach uses the resulting customized criteria to quickly develop a cursory assessment regarding the investment’s overall attractiveness and fit. We then present to you only the potential opportunities that warrant further attention, along with a preliminary list of issues that require additional review during the subsequent “analysis & selection” phase.
Assessing the attractiveness of a specific investment opportunity, and determining its fair value.McCombie Group specializes in both the art and science of enterprise analysis and valuation. We begin by comprehensively understanding an industry’s strategic landscape, including its size, trajectory, and trends, along with the target company’s specific position and performance within it. We then perform an exhaustive analysis of the company’s historical and projected financials, its business plan, and the strengths and weaknesses of its management team. Collectively, these insights are incorporated into our independent, dynamic financial models, which estimate valuation and returns based upon scenario. Our conclusions are only as strong as their corresponding inputs and therefore we seek relevant, yet simple assumption drivers that can be intuitively validated with standard industry benchmarks. Ultimately, we strive to provide you with flexible tools and analytics to confidently understand the financial implications of your future world view.
DEAL STRUCTURING AND NEGOTIATION
Designing a gameplan to successfully convert a compelling opportunity into a sound term-sheet.After identifying a compelling investment opportunity, success still requires closing the deal at the right price and terms. Preparation begins far prior to the negotiating table—researching the precedents of prior transactions, along with fully understanding your counterparts’ interests, resources, and range of viable alternatives can be invaluable. While discipline is paramount, the greatest value is often unlocked when creative deal structures are explored that benefit and incentivize both parties. Whether using us to negotiate on your behalf or retaining us to advise on the best strategy, tactics, and cadence for you specific situation, McCombie Group can help ensure your interests are best served.
Validating the initial representations and warranties upon which an investment is predicated upon.Conducting a full-scale due diligence operation is a complicated and tedious task. It requires a detail-oriented project manager that can coordinate a diverse universe of professionals— legal, accounting, expert consultants, etc. — without wasting time or money. McCombie Group proactively sequences and prioritizes the resolution of the most important risks and uncertainties, allowing you to focus your energy on the substance of the deal.
Independently monitoring the progress of more passive investments against pre-defined milestones.Clients often rely on McCombie Group to objectively assess and monitor the progress of their more “passive” private investments. Typically, we perform initial diagnostics to independently validate a company’s performance and prospects relative to management reporting. When escalation is appropriate, we will utilize many of the same approaches used in a formal due diligence. Clients may also “outsource” more formal oversight roles by assigning a McCombie Group principal as a Board Observer or as a Board of Director, on their behalf.
Executing transactions to enable your company to seize pivotal opportunities.
Although generally infrequent, every company confronts pivotal developments that can dramatically change its trajectory. Mergers and acquisitions (M&A), joint ventures, creative licensing agreements, and substantial negotiations with key clients or suppliers are important to get right the first time. Given the infrequency of these events and the specificity of the skillsets, most businesses choose not to employee these resources in-house. McCombie Group temporarily provides your business with extended team members experienced in capitalizing on these emerging opportunities. Our approach is strategy driven, not deal driven–we provide the objectivity and rigor to ensure a transaction is not simply a reaction to momentum and external pressure.
Issuing recommendations to improve the performance and value of your operating businesses.
McCombie Group serves as an objective, fact-based advisor that can help maximize the performance and value of your enterprises. We use a comprehensive toolkit of approaches to provide specific, actionable recommendations on how to best prioritize your efforts and resources. Many times, we continue along with a newly deployed investment, leading subsequent post-merger integration efforts to ensure initial assumptions are converted into milestones and results. Our principals have extensive experience in the following functional disciplines:
Resolving shareholder disputes and unwinding problematic deals.Shareholder disputes can often be complicated and riddled with baggage from pre-existing relationships between parties. As an objective third-party, McCombie Group can help resolve disputes by both mediating discussions and providing unbiased, actionable recommendations. McCombie Group also has the capabilities to help turn around troublesome deals.