FINANCIAL & STRATEGIC OPTION ASSESSMENTS

To create a market-driven assessment of each client’s financial and strategic options, we perform an in-depth analysis of the following issues:

Corporate Strategic Objectives
Working closely with business owners and managers, we develop a comprehensive understanding of the company strategy and growth objectives. We provide an unbiased assessment as to whether these goals can be achieved in light of existing capital or liquidity constraints.

Shareholders’ Liquidity Goals
Taking the time to fully understand shareholders’ and managements’ liquidity objectives is critical to recommending an optimal course of action. To that end, we frequently interview principal shareholders and key leaders to gain an understanding of their views on risk tolerance, target liquidity thresholds, and their timetables for achieving liquidity goals.

Financial Plan
We collaborate with the client's management team to refine or develop a detailed, 3-5 year financial plan that takes into account the company's growth opportunities, operating strategy, and anticipated capital requirements.

Borrowing Capacity
We examine the company's historical and recent financial performance to assess the client's borrowing capacity in light of current conditions in the senior and subordinated debt capital markets.

Industry/Market Dynamics
If appropriate, we also undertake a detailed review of our clients’ industry to identify key trends within existing or new target markets. Our experience in working with clients across a broad range of industries enables us to rapidly identify market opportunities and challenges that may affect a company’s growth prospects.

Competitive Landscape
As part of every STAR advisory assignment, we assess the current competitive environment and analyze our client’s market position. This analysis often includes detailed market maps and competitive profiles that can be used to understand the universe of potential acquirers should a strategic sale be of interest.

Business Value
We develop a market-driven assessment of the value of the client’s business that takes into account both traditional quantitative valuation analyses and other key qualitative factors that may affect the company's ultimate valuation.

Strategic Options
We combine the findings from the above market studies with detailed financial model "scenario" analyses to develop a comprehensive, integrated, and market-driven assessment of the client's various strategic alternatives. We then compare these alternatives to the company's stated liquidity goals, growth plans, and capital requirements to identify a recommended course of action that is best aligned with the company's overall strategic objectives.