5H Capital & Advisory (5HC&A) was born out of a demand from our Private Equity and Consumer Product clients to provide both pre- and post-acquisition strategic services. Entreprenuerial Consumer Products firms frequently call on us to assist with capital raising, company sales and strategic operational issues.
With our global footprint and US/Asian expertise, we are well-prepared to engage on the most complex assignments facing our clients, which include private equity firms, international retailers, branded product companies and entrepreneurs.
Lastly, being solely focused on the consumer product industry, we can ensure targeted, strategic advice and services which are unrivaled by generalist firms.
Private Equity Sponsor Services
Pre- Acquisition Services
The inherent risks and opportunities of the global supply-chain go well beyond financial statements. The geographic scope, technical specialization, and complexity of most modern supply chains can make navigating the tangled webs of factories, traders, and subcontractors a daunting task and mean that the “devil” is often in the details. Our professionals are solely focused on the global supply chain and can ensure targeted, strategic advice and services that are unmatched.
5HC&A employs a tailored approach to each assignment, focusing on identifying and distilling the fundamental components of the target’s global supply-chain infrastructure. We provide investors with a comprehensive analysis that can unlock the hidden value or threats that may exist within a target’s supply-chain and then construct actionable plans that will prepare investors to capitalize on opportunity and mitigate risk. Our pre-acquisition due diligence services include assessments in the following areas:
- Supply chain stress
- Manufacturing capacity
- Product quality assurance
- Global sourcing opportunity
- Cost optimization
- Organizational efficiency
- Purchasing and production planning
- Distribution, transportation and logistics opportunity
Post Acquisition Integration
The first months post-acquisition are critical to defining the strategic priorities of the new investment. We can provide investors with a 180-day post-acquisition plan targeted at capitalizing on high-impact opportunities and building defenses against potential risks in the supply chain. Our post-acquisition services include:
- Global sourcing & development improvement
- Production management optimization
- Quality assurance process improvement
- ERP review or implementation
- MRP review, design or implementation
- Logistics and transportation optimization
- Purchase order management standardization
- Product cost optimization
Entrepreneurial Capital & Advisory Services
Capital Raising
5HC&A can assist entrepreneurial product companies to access equity and debt capital and ensure growth is properly financed. As specialists in consumer products, we know the investors and lenders who are most appropriate for your business and understand how they think. Over the past 10 years, our partners have invested, raised or advised over $500 million of equity, mezzanine debt and senior bank debt. Upon understanding your company’s current financial situation, competitive position in your market and expectations for growth, our team can advise you on the most appropriate capital structure to ensure your success. 5 Horizons capital raising services include
- Equity growth capital
- Mezzanine capital
- Senior bank debt
- Recapitalization
- Workouts & restructuring
- Valuation services
Entrepreneurial M&A
An entrepreneur’s decision to sell their company is a difficult and often emotional choice. We strive to help make the decision a bit easier by providing top-notch guidance and sell-side support tailored to the unique needs of product entrepreneurs. 5 Horizons partners have been involved in approximately $400 million in M&A transaction value over their careers and understand what it takes to plan and execute a successful sale.
Our proprietary network of strategic and financial buyers are well versed in our business and we will know which ones to contact based on our evaluation of your business. 5 Horizon’s company sale process includes:
- Meeting with management to evaluate the business
- Agreeing on the sales process with management
- Build database of possible buyers
- Draft sale memorandum
- Contact and liaise with buyers
- Collect indications of interest
- Select sales partner / Negotiate definitive agreement
- Manage the final due diligence process
- Close transaction & manage transition issues
Corporate Services
5 Horizons’ professionals have significant operational, corporate finance and accounting experience, particularly with high-growth, entrepreneurial product firms. Our CFO/COO Services assist two types of clients. First, for the fast growth, entrepreneurially minded firm, we provide a leveragable platform that ensures your operation and financial infrastructure keep up with the pace of your business. Secondly, for clients needing corporate recovery services, such as operational strategy changes, financial control improvement, and business plan assessments, we help firms get back on track and access the private capital markets if necessary.