Case Studies

Press Forge, the largest conversion metal forger and manufacturer in the U.S., was preparing for a sale but lacked experienced senior financial management to lead the company through the process.

The company’s M&A attorney, who had worked with Buxbaum HCS on numerous transactions, referred us in to fill the void in the company’s finance department. 

Buxbaum Solutions

• Our M&A CFO served as the point person for all transaction-related needs, including interfacing with and reporting to auditors and investment bankers.
• Transitioned the company’s financial reporting from tax basis to audited GAAP basis.
• Prepared the company for a financial audit.
• Prepared financial models, pro-forma results and forecasts.
• Led post-acquisition transition.

Value Creation 

With a Buxbaum HCS M&A CFO on its team, Press Forge’s management was able to concentrate on day-to-day operations during the sale process. The company was well-represented to all potential buyers, and sold in 2015 to a large player in the metallurgy space. The Buxbaum HCS CFO remained for a few months following the sale, facilitating a smooth transition.

The partners in a Los Angeles-based investment advisory firm and investment bank with over $7 billion in assets under management decided to sell the business. While the partners, with their deep M&A experience, understood the importance of well-prepared financial statements, they also knew that their company lacked audited financial statements.

The firm frequently referred clients with similar accounting problems to Buxbaum HCS, so they knew we would resolve their issues quickly so they could go to market.

Buxbaum Solutions 

We pursued a two-phase engagement:

• Phase 1: Senior and junior Buxbaum HCS finance professionals jointly worked to prepare the client for its first financial audit.
• Phase 2: Our senior resource, an experienced M&A CFO, remained with the company post-audit to assist with buyer due diligence and closing, and again post-close to assist with integration.

Value Creation

Over a few weeks, our team of finance professionals successfully prepared the firm’s books and financial records for its first financial audit. Our CFO was an instrumental member of the M&A team, contributing to the successful sale for $125 million. The buyer was so impressed with our CFO that she was asked to remain during the post-acquisition integration phase, then was offered a permanent position as CFO responsible for finance and accounting for the acquirer and its U.S. subsidiaries.

The Board of Directors of a privately-owned leader in 3D printing wanted to sell the business. The company, with more than 400 employees in six facilities, designs, prototypes and produces components for customers spanning multiple industries.

The company’s CFO, legal counsel and investment bankers realized the company lacked the capacity and expertise to pursue a successful sale while operating the business, so its attorney recommended hiring Buxbaum HCS to fill the gap.

Buxbaum Solutions

• Supported the company’s CFO, who lacked transaction experience and the bandwidth to be actively involved in the sale process.
• Provided financial analyses and projections for the offering memorandum.
• Supervised the preparation of a Quality of Earnings analysis.
• Provided audit guidance.
• Supported buyer due diligence.
• Completed the financial requirements for the merger agreement.
• Post-closing, integrated the financial statements for the buyer.

Value Creation

Buxbaum HCS’s experienced M&A CFO was a key member of the transaction team. The company was sold to a leading competitor, creating opportunities for our client to leverage manufacturing capabilities and cross-sell services, with compelling financial benefits. The acquirer ultimately hired one of our interim professionals as a full-time employee.

One of California’s largest collectors of waste oil and the state’s sole operator of a re-refinery was in bankruptcy and preparing for a sale. The company’s debtors were unsatisfied with its CFO’s performance, as the recaords and systems were substandard.

The debtors demanded that the company retain a financial advisory firm to assist with the bankruptcy and subsequent sale process, and referred management to Buxbaum HCS. Our Interim CFO brought immediate relief to the debtors’ concerns.

Buxbaum Solutions

Working closely with the company’s management and CFO, with whom we established strong relationships, we:

• Successfully navigated multiple constituents (some adversarial to one another) and obtained accurate information for the debtors.
• Built cash-flow projections and completed court-required filings.
• Assisted with daily operations and potential buyer due diligence.

Value Creation

Buxbaum HCS efficiently got the company on track for a successful exit from bankruptcy in the U.S. Bankruptcy Court and a $60 million sale to the leading provider of environmental, energy and industrial services in North America.

When the four majority shareholders of a global provider of partnered conference and technology for the life sciences industry decided to sell their business, they faced major hurdles. The company operated separate entities in the U.S., Switzerland and Germany, had minority partners, and conducted business in four currencies resulting in unique financial books and records pursuant to local tax and accounting requirements. Additionally, the company did not have a CFO.

The company’s M&A attorney referred the shareholders to Buxbaum HCS for an experienced M&A CFO to guide them through preparing for and closing a sale.

Buxbaum Solutions

• Consolidated disparate financial statements to present the company’s financials in a single currency under U.S. Generally Accepted Accounting Principles (GAAP).
• Reconciled minority interests in individual conferences as needed.
• Prepared financial statements that could be substantiated and easily understood by prospective buyers.
• Advised against an audit, due to the number of entities and other limitations and recommended an independent seller’s due diligence report to provide assurances similar to an audit, potentially limiting the buyer’s due diligence; provided necessary documentation for accounting firm’s timely completion of the report.

Value Creation

Buxbaum HCS ensured the sellers were well-represented and fully understood their options throughout the sale process, including referrals to highly qualified lawyers and tax advisors in the U.S. and Switzerland. In the end, the company that had been their life’s work for 20 years was sold for full value.

While preparing the offering memorandum for a privately held national benefits solution provider, the investment banker realized that their client company’s accounting systems and financial records were in disarray.

The investment banker recommended Buxbaum HCS to the company’s CEO on a Friday – our Interim CFO was working on-site in Arizona within four days.

Buxbaum Solutions

• Deconstructed company’s accounting records and reconstructed a financial accounting system that would withstand intensive scrutiny by prospective buyers.
• Provided sound financial statements to the investment banker for the sale process.
• Responded to requests from the buyer’s external due diligence advisor.
• Recommended new finance and accounting personnel to the buyer.

Value Creation  

Working closely with the investment banker, we facilitated the successful sale of the business in only five months. After the deal closed, our Interim CFO remained involved to help with the business transition.