After innovating an exciting new healthcare technology and spinning the company out of a university, our client, a digital health tech startup, faced a number of significant challenges.
In G-Squared Partners, they found a reliable strategic partner with the capabilities to help them solve their biggest financial problems, build for the future, and eventually, sell the business to a public company in a deal worth tens of millions of dollars.
From Negative Experiences with Other Vendors to Fast-Paced Growth with G-Squared Partners
Before working with G-Squared Partners, the company had both tried to manage accounting internally and had worked with an outsourced accounting provider. While they had some of the basics in place, what they were missing most was the experienced financial leadership required to take the business to the next level.
The business had raised friends and family funding, but to scale further was looking to raise its first round of institutional capital. However, owing to the lack of accounting infrastructure, the founders were having a tough time pulling together financial statements and forward-looking projections that would help them secure the backing of sophisticated investors.
The team at G-Squared Partners quickly got to work, bringing the company’s accounting to GAAP compliance, setting up monthly close processes, and helping them build a dynamic long-term financial forecast.
But that’s not all: G-Squared Partners also introduced the company to the venture capital firm that would go on to lead the funding round. With a fresh injection of capital and a more robust accounting structure, the healthcare technology startup was ready to start scaling fast.
Experienced CFO-Level Leadership Tackles Tough Challenges
Following the closing of the funding round, our client launched a series of growth initiatives. G-Squared Partners was at their side every step of the way, acting as an outsourced CFO plotting the path toward sustainable success.
During this period, G-Squared Partners continued to manage the company’s accounting and finance needs while also providing a wide range of strategic advisory services. From building novel revenue models that drove value for the company and the large healthcare organizations they worked with to negotiating customer and vendor contracts, the team at G-Squared Partners quickly became an indispensable part of the team.
Owing to its innovative technology, the business had always been an attractive acquisition target. Throughout their growth, they received multiple offers from potential acquirers, with G-Squared Partners supporting the due diligence process on each occasion. Ultimately, the company received an offer from a public company in their industry that represented a great fit and they leaned on G-Squared Partners to help them navigate the transaction.
Building for A Successful Exit to a Public Company
After hiring an investment banker, the startup entered negotiations with a public company interested in acquiring the business. Throughout this process, the team at G-Squared Partners worked closely to assist the negotiations, manage the due diligence process, and work with the acquirer’s auditors and Quality of Earnings (QoE) team.
Thanks to G-Squared’s earlier work bringing the business up to GAAP compliance, the due diligence process went smoothly. Our team prepared a comprehensive reporting package that contained all of the work papers and financial insights the acquiring company required to verify our client’s financial performance.
Both the acquiring company and their auditors commented that the quality of G-Squared Partner’s work papers and monthly close processes gave them significant confidence in the business’s finances. After completing the due diligence phase with few issues, the focus of all parties quickly moved to determining the future value of the company and closing the transaction.
After the transaction closed, the acquiring company retained the services of G-Squared Partners to support the transition. During this period, the G-Squared Partners team also worked with several of the acquiring company’s subsidiaries, helping to upgrade their existing accounting infrastructures and processes to be in line with those of our original client.
With a successful exit complete, our client went on to start another business. And once again, they hired G-Squared Partners to serve as an outsourced CFO and accounting team. We’re excited to be part of their journey.
