Frequently Asked Questions

Q:   How do I know if you can help me in my industry?

 

A:   ProFinance® works in multiple industries, but has specific focus and experience working with companies in high gross margin, repetitive income, service industries, electronic security (physical and virtual) and the maritime industry.

 


Q:   Why should I pick ProFinance® for Financing or Merger & Acquisition assistance over, say, a well-known competitor?

 

A:   ProFinance® concentrates on typically harder-to-finance small to medium sized companies, often ones in service industries with meaningful enterprise value versus balance sheet value, and has been active in the field since its inception in 1985. Most of our business originates from referrals from current or former clients or individuals who know our track record in a given industry. We provide reference letters and contacts to interested parties to attest to our past experience.

 


Q:  When you are involved in Mergers & Acquisition work, who pays your fee?

 

When ProFinance® represents a buyer, the buyer pays the fee separately from the purchase price. Before commencing a search for acquisition candidates, ProFinance® and the buyer will enter into an agreement which will spell out the fee structure and the responsibilities of the parties. The fee is typically paid at the time of the closing.

When ProFinance® represents a seller, the seller and ProFinance® agree at the outset what each party's respective responsibilities are, and what ProFinance's fee will be. The fee is typically paid at the closing out of the proceeds from the buyer.

 


Q:  What kinds of financings does ProFinance® arrange and what sizes are of interest?

 

A:  We spend a great deal of time trying to identify financial sources that understand and appreciate electronic security, maritime industries and service industries and those that can work in "special circumstances" (early stage financings, turnarounds, etc.). We arrange all kinds of financings, from senior debt to equity. We look for both financial and strategic sources ("strategic" typically means a company that adds additional value besides just money). We have completed financings ranging from $250,000 to $175 million; however, our interest range is typically $3 million and up.

 


Q:  Does ProFinance® have a philosophy or orientation in financing?

 

A: YES! We try to help our client define the best long-term capital structure to meet the company's growth financing needs and then put it in place. We try to arrange simple, long-term financial structures with appropriate capital sources, which can save considerable time and money at the beginning and over the years. By specializing in specific industries, we are often also able to preserve our client's equity by maximizing the amount of senior financing (or "stretch senior" financing) available, rather than raising as much subordinated debt and\or equity as might otherwise be necessary. We consider strategic partners as well as financial sources, if that appears to better achieve the same goals.

 


Q:  Given how quickly information can travel in an industry, how can I know that what I tell you won’t be shared with my competitors?

 

A:  A critical part of deal success often is to maintain confidentiality. We have significant experience in working with our clients to minimize information leakage.

 


Q: How do you work with a client?

 

A: Before we accept an assignment, we speak with the client to understand his or her situation. After we make a decision to work together, we cover marketing issues, financial issues, contractual issues, and any other matters which affect the client's business. By walking through these issues in detail, we try to help identify opportunities, strengths and new markets which can be exploited by the client and which can impact, in turn, the M & A or financing work we are undertaking on their behalf.

After establishing the business issues and determining what a client's needs and desires are, we work closely with the client to make introductions suitable industry and financial players as quickly as is appropriate.

 


Q:  Will you consider a transaction outside the U.S. and, if so, where?

 

A:  Yes! We have expertise in a series of services industries which have significant growth potential internationally and ProFinance®. Our professionals have extensive international business experience and have multilingual capability. We are interested in international business, but will only undertake activities if we feel we provide "value add."

 


Q:  Does ProFinance® have any strong affiliation with any one group?

 

A:  ProFinance® is independent, and as a result, can offer unbiased advice. When advising a client, we make recommendations based on what we believe is in the best interests of the client at any given moment given the circumstances as we know them.

 


Q:  Do you have a large bureaucracy in your shop?

 

A:  ProFinance® is an organization of seasoned professionals, but the group is small and entrepreneurial. Therefore, the group does not have layers of bureaucracy to slow down the deal-making process. ProFinance® professionals have been able to bring complicated transactions to closure by knowing to whom to bring the right deals. In addition, when a client chooses to work with us, the client knows from the beginning with whom he or she will be working.

 


Q:  Why do you provide consulting services and how can it help my company?

 

A:  We are investment bankers, not consultants. We ask to be paid if a potential investor is looking at a new industry or if a company is considering an acquisition or financing. By "consulting" under these circumstances, ProFinance® is compensated for providing value. We are good at consulting because we have worked in many service industries, and our clients frequently require a road map for probable future developments. If "knowledge is power," then having someone who can help you best position your company for success in a changing environment is valuable.

 

 

 

 


Home | Services | Testimonials | Biographies | About Us | FAQ | Contact Us | Sitemap


ProFinance® is a registered trademark of ProFinance® Associates, Inc.