Independent Valuation | M&A

Together with our partners, we determine strategies to achieve outsized equity value, contributing the Heritage Team’s decades of knowledge and relationships across private equity funds and portfolio companies, to outline and execute multi-pronged growth initiatives (generally with a 5-7 year exit target). This contrasts with typical organic growth by using acquisitions and institutional equity backed growth capital to consolidate fragmented markets and capture market share, ultimately building a much larger company attractive to potential acquirers, including large cap private equity funds, strategic buyers, and public companies.

Throughout our partnership, Heritage iterates messaging to align capital market participants with our immediate and longer-term initiatives. This requires carefully considered communications targeted to equity/debt investors, competitors, and acquisition targets.

As part of these overall strategies and messaging initiatives, Heritage identifies and cultivates brand value drivers to achieve higher multiples applied to enterprise value versus EBTIDA alone.

Heritage collaborates with our partners to achieve corporate strategies and growth initiatives using executable detailed business plans supported by robust financial projections, market research, capital and organization structures, and well-matched capital sources.

We align historical financials to private equity standards while perfecting quality of earnings reviews, then bridge historical performance to pro forma projections. Heritage prepares robust, dynamic financial models detailing growth initiatives while iterating and stress testing outcomes, incorporating feasible capitalization structure and financing.

Heritage’s approach explicitly considers multiple ownership and funding structures, an often overlooked, but essential, art form in finance. Our Executive Team contributes decades of experience across private equity, hedge fund, and debt fund transactions to optimize capital structure.

Organization structure is equally important to drive value. Heritage details the existing organization then identifies and phases key hires to support growth projections, ultimately institutionalizing our partner as an independent entity salable to large cap buyers, while minimizing key man risk.

While institutional equity raises and acquisitions are often key components of growth strategies, proper preparation for ultimate exit is always a primary value driver. Early in the Heritage Growth process, our Executive Team consults with our close private equity relationships to obtain live market feedback and test investment theses. We apply this proprietary market intelligence to optimize overall strategy.

Heritage builds from the pro forma financial model, the core business plan, with a formal Offering Memorandum and comprehensive data room that together provide a cogent, well-defended narrative around our Corporate Strategy, Brand Capitalization, Finance & Structure initiatives.

With these tools, Heritage begins a methodical, targeted outreach to private equity funds and other potential buyers. With feedback from this process, the strategy is fine-tuned and credible, interested buyers are moved forward into preliminary diligence and formal LOI phases.

Together with our partner, Heritage analyzes offers with consideration for economic terms, certainty of closing, capital type, capital structure, and the potential buyer’s limited partner profiles and contributions beyond capital. Heritage negotiates alongside our partner to select and optimize the preferred offer, and coordinates with our partner’s professional advisors to finalize the LOI and deal structure. Heritage defends all diligence required to close the deal. and collaborates with our partner’s team to finalize agreements and closing documentation, and to close the deal.

Heritage applies this same process, from the opposite perspective, to support our partner’s acquisitions.