These companies have specialized experience in an industry or profession and have the tools, training and name recognition to ensure a continuing stream of business opportunities.
Raising capital for knowledge-based business can be demanding. The absence of tangible assets precludes the most common types of debt financing and requires very special treatment and documentation. Cronus is familiar both with the issues faced in financing this type of business and with the capital sources prepared to finance this market.
The sale of business services companies is also a challenge due to the dependence on customer repeatability and the difficulty of forecasting growth and margins. The saying “our inventory goes home a night” derives from the industry’s manpower demands and is a major factor in determining value. Stable key employees, consistent customer requirements, and margins and revenue growth are essential ingredients in establishing value.
Cronus is very familiar with the business services sector and works with clients to support growth, secure a merger partner, and sell or acquire within the industry. Recognizing that some businesses do not have the depth in financial staff to craft the products required for a sale or to perform due diligence in an acquisition, Cronus supports the process with financial analysis and a comprehensive approach to due diligence. We also work closely with a company’s legal team on document review, negotiation, and scheduling. The business services company will benefit from our industrial background, business relationships, experience, and ability to achieve a successful financing, acquisition or sale without untoward disruption, enabling our client to remain focused on operations.
Cronus Partners LLC is a registered broker-dealer and member FINRA (www.FINRA.org) and SIPC (www.SIPC.org).
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