Crallé & Company

Business Plans and Financial Analysis

Business plans (often called Information Memos or Transaction Memos, or Prospectuses) sometimes fail to establish a compelling reason for an investor to go beyond a cursory review.  Some are bulked up with extraneous detail; others are so superficial that they fail to attract a reader's interest.

Professional investors see so many proposals that they tend to be skeptical of hyperbole, in essence always looking for a reason to say “no.”  For them, there is always another promising opportunity just around the corner.

Crallé & Company has drafted hundreds of plans and presentations dealing with a wide variety of industries, usually in conjunction with a fund-raising or sale of a business, and so have been tested against real-world criteria.

Valuations and Financial Analysis

Business plan creation depends on financial analysis and valuation, business writing skills, and deal structuring skills.

Valuation of middle-market operating companies is integral to everything else we do.  Whether a stockholder is effectively in control or in a minority, we will render an opinion tempered by real-world experience, based on rigorous fundamental analysis of finances and operations.

We approach valuations differently from appraisers and CPAs.  Appraisers, for example, rarely also have the acumen to value an operating business; their skills tend to be limited to comparing commodities (real estate, machinery & equipment), or rare static assets (artwork, for example).  CPAs may have the technical knowledge to comply with regulatory rules (SEC and FASB) for reporting past results, not evaluating future prospects.

By contrast, our valuation approach is tempered by the insights that come from knowledge of the intricacies and nuances of actual transactions, whilst mindful of the theoretical and academic underpinnings (such as real option theory, capitalization of excess value with discounting based on the capital asset pricing model, and relative value analyses, of course).

Due Diligence and Financial Analysis

Due diligence reviews are an extension both of financial analysis, picking up where CPA financial reports end, and the operational insights that come from having performed the function many times before.  Often a first step is to restate CPA external reporting to reveal policies designed to minimize taxes, particularly in privately held companies.

Crallé & Company is thoroughly experienced and skilled in analyzing the complexities that guide real-world transactions.

We are available to consult in situations and formats as diverse as fairness opinions, expert testimony, acquisition or divestiture positioning or negotiations, marital dissolution, buy-sell agreements, and litigation support.

You may be interested to see Representative Assignments here.

Next >

e-mail this page to a friend

Download a PDF summary of this section

Crallé & Company, Incorporated
Bronxville, New York