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Startup/
M&A
Startup Coach
There are essentially two paths to entrepreneurship. One involves the creation of a business from the ground up, commencing with a blank canvas to establish one's own enterprise. In the wake of pioneers like Yahoo, Google, Amazon, and newer entrants such as Salesforce and Shopify, entrepreneurship experienced a global surge in popularity during the decade or so leading up to the pandemic. Concurrently, the venture capital industry witnessed substantial growth.
In reality, regardless of whether it's an ambitious, technology-driven startup or one that adheres to conventional practices and norms, the probability of success for new ventures remains notably low. Statistics reveal that as many as 20-30% of startups may not survive their first year, with approximately 50% faltering within the initial two years. By the third year, an estimated 60-70% of startups may face dissolution. Numerous factors contribute to this relatively low survival rate, with some of the most prevalent issues encompassing:
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Lack of experience, which includes both industry-specific expertise and business management acumen.
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Resource limitations, such as constrained startup capital and a dearth of viable financing avenues, which can impede the execution of corporate development strategies.
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A limited understanding of finance, leading to suboptimal financial decisions and low returns on investments, often hindering ongoing operations.
Frequently, the challenges faced by entrepreneurs are commonplace and amenable to effective solutions. Regrettably, many entrepreneurs may struggle to access the necessary guidance, often leading them down paths that culminate in failure.
HSHS Consulting was founded to address these prevalent challenges, leveraging its profound industry knowledge and extensive business experience to provide the support needed for entrepreneurial success.
M&A Advisory
The second route to entrepreneurship involves the acquisition of an established business. In the lexicon of investment banks, this process is often described as 'mergers and acquisitions' (M&A). It's worth noting that HSHS Consulting is well-equipped to offer advisory services for corporate M&A transactions.
Acquisition Target Recommendation
Based on the buyer's specific requirements, including their business plan or corporate development strategy, we undertake the following steps in the M&A process:
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Market Research: We conduct thorough market research to determine the buyer's M&A needs and budget.
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Target Screening: Our team screens potential M&A targets that align with the buyer's needs.
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Comprehensive Information Collection: We conduct in-depth investigations on the screened targets, collecting and analyzing all relevant information.
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Target Introduction: We introduce the selected, suitable M&A targets to our clients, providing valuable assistance in the evaluation process.
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Negotiation Assistance: We actively support our clients in negotiations with the target party, ensuring a smooth and successful transaction.
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Transaction Support: Our services extend to assisting clients in completing M&A transactions, offering crucial legal, financial, and taxation support.
Financial Due Diligence
When entrusted by the buyer, we conduct a comprehensive and meticulous investigation into the financial aspects of the seller's company. This diligence is aimed at assessing the reliability of the financial data and, if necessary, making adjustments or even recompiling the original financial statements based on any issues identified. Our objective is to present an accurate depiction of the seller's company's financial status, laying a robust foundation for enterprise valuation and buyer decision-making.
Our process involves the following key steps:
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Financial Statement Review: We meticulously review the financial statements of the M&A target to ascertain their authenticity and accuracy.
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Revenue and Expenses Analysis: We assess the revenue and cost structure of the M&A target, providing insights into its financial health.
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Debt Solvency Evaluation: Our evaluation delves into the debt repayment capacity of the M&A target, offering valuable insights into its ability to manage debt.
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Asset Evaluation: We appraise the value of the assets held by the M&A target, providing a comprehensive assessment of its asset portfolio.
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Cash Flow Analysis: We analyze the cash flow of the M&A target to gauge its cash position.
This diligent process ensures that our clients receive reliable and actionable financial information for informed decision-making in the M&A transaction.
Post M&A Advisory
Following corporate mergers and acquisitions, we play a vital role in helping companies achieve seamless integration and overall improvement. Our services encompass the following essential areas:
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Organizational Structure Integration: We assist the merged company in streamlining and integrating its organizational structure to ensure smooth and effective operations.
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Process Integration: Our team works to harmonize and integrate various processes within the company, promoting efficient business operations.
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Information Technology Integration: We facilitate the integration of information technology systems to enable data sharing and unified management.
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Human Resources Integration: Our services extend to integrating employees from both entities, fostering efficient teamwork and collaboration.
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Resource Integration: We aid in the integration of physical assets and financial resources, optimizing their efficient utilization.
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Cultural Integration: Our support extends to harmonizing and integrating diverse corporate cultures to enhance teamwork and synergy.
Our comprehensive approach ensures that companies successfully navigate the complex landscape of post-merger integration, driving efficiency and cohesion throughout the organization.
PEVC Financial Advisory
In today’s highly competitive market, successful venture capital requires more insights, expertise and support to achieve success in a high-risk environment. Our consulting firm is committed to providing a wide range of services to meet your needs and help you achieve growth and performance optimization of your portfolio:
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Investment strategy and opportunity discovery: We will work with you to develop the best investment strategy based on your investment goals and strategic vision, and assist you in identifying and screening the most promising investment opportunities, including startups, emerging markets, disruptive technologies and innovative fields.
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Due diligence and industry research: Our professional team will dig deep into the market, analyze the competitive situation, evaluate the potential investment opportunities, and provide detailed due diligence reports to support your decision-making process.
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Validate business plan: Evaluate the potential value of investment projects from aspects such as market opportunity, competitive landscape, technology prospect, financial model assumption, etc.
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