M&A Advisory

Chrysalis is a high-touch, professional advisory firm focused on helping business with less than $2 million in annual EBITDA complete majority equity sales

Transactions have become too difficult, too long and too expensive

Solid businesses with less than $2 million in annual EBITDA have been forgotten; often finding themselves at the mercy of unmotivated business brokers.

Using our proprietary process, Chrysalis offers high-quality advisory services to a select group of companies looking to complete majority equity transactions.

Our Core Commitments

We will not engage with more than 2 clients at any given time...

We can't think of a better way to make sure we're aligned with our clients. If a transaction is not completed, it hurts us financially.

We will only move ahead if we truly beleive we can complete a sale...

We will only engage with a client when we truly believe we can be successful. This means turning away far more potential clients than we sign up.

We will keep any and all information private

We sign Non-Disclosure Agreements before any sensitive information requested from you. We take privacy seriously and will not share any of your information.

We will complete significant up front work before you ever pay a dime...

Businesses that make it through the first stage of the application process are subjected to further analysis and assessed for their viability for a sale. We do this for our benefit as much as yours.

Together, we will agree on a valuation range at the start

We will provide you with an assessment of what the market is currently valuing similar companies. We will not move forward until you on an acceptable selling range.

We will work diligently to complete transactions as quickly as possible

Without sacrificing quality, our goal is to complete transactions as quickly and efficiently as possible.

Step 1: Initial Selection

We invite only 2 companies into our cohort at any given time; spending a disproportionate amount of time up front de-risking all aspects of a transaction;

MAXIMIZING ALIGNMENT WITH OUR CLIENTS

Following extensive up front planning, our programmatic approach is designed to address all remaining questions potential buyers may have;

SPEEDING UP THE PROCESS

Financial

No Debt (or to be Repaid Prior to Closing)

Other then operating debts such as accounts payable, inventory, or business operating lines of credit.

Up to Date Inventory Tracking

Companies should have easy to understand and up to date tracking systems, even if they are manual.

Accountant Reviewed Financial Statements

Annual financial statements should be reviewed, at a minimum, by an external accounting firm.

Clients

Long-term Clients, Long-Term Contracts

Long-term contracts representing over 50% of your revenue coupled with clients with tenures over 5 years.

No Client with Revenue or EBITDA >20%

No single client should represent greater than 20% of your revenue or EBITDA. Exceptions can be made if the client has a long-term contract.

Minimum 2 Years within EBITDA Range

To maximize purchase price, companies must have consistent or growing EBITDA for several years.

Company

Competent Senior Management

Sellers need to demonstrate that their next level of management can effectively run the business going forward.

Minimal Management Turn-Around

Long-standing management who understand the nuances of the business with proven trustworthiness.

Multiple Future Growth Opportunities

Buyers want to know that, with minimal effort and capital, the business can grow quickly.

Shareholders (the Sellers)

Willing to Stay Active Post Acquisition

Buyers will require sellers who are active in the business to help with the transition for a minimum of 1 - 3 years.

Simple Capital Structure

A simple share structure with only a few shareholders ensures a quick and efficient transaction.

Willing to Defer Some Payment

Buyers typically ask sellers to defer a portion of the purchase price for 1 - 3 years to ensure the business remains healthy during the transition.

Step 2: Our Proven Process

Completing M&A transactions has become more difficult. Buyers have become increasingly resistant to complete purchase transactions as the cost of capital and interest rates have risen. Working with a proven advisor provides buyers with the comfort that a transaction can be completed on time.

We’ve always believed that it takes more than good intentions to get transactions done. Acting as quarterback, Chrysalis has developed strict processes and guidelines to make sure all stakeholders are driving towards a successful outcome.

Assess & Invite

Chrysalis spends a great deal of time up front assessing potential clients; ensuring fit and alignment

Establish Goals

Planning is a fundamental key to success. We ensure objectives, tactics and timelines are well-defined prior to launch

Build & Refine

We prepare / build all necessary documents, structures and processes required to ensure a successful launch

Go To Market

High energy, targeted launch. Focused activity with a clear sense of urgency are keys to a successful launch

Identify & Lock-up

Typically within 2 months, a buyer is identified and acquisition terms are finalized

Finalize & Close

Drive hard during final due diligence process and complete purchase in a timely manner