Professional services companies continue to adjust to changing industry dynamics in order to remain relevant and competitive. Companies are taking measures to refocus distribution models and advertising channels to cater to web and mobile audiences. There is a greater reliance on outsourcing as a means of cost cutting and maximizing efficiencies. We have also seen a rise in the number of middle market firms utilizing third parties and consultants to provide the specialist and technical expertise they may lack to keep up with advances in technology. Additionally, the effects of increased regulations, and the resulting need to implement compliance programs, continue to drive up expenses. Professional services companies still face the challenge of keeping pace with innovations that may render some services obsolete, as well as increasingly steep competition in a saturated and globalized online marketplace.
The extended period of low interest rates is a key development impacting professional services companies. Investors are in constant search of yield in new areas, which has led to growth in the Specialty Finance sector as well as among small investment companies (SBICs) and development companies (BDCs). We expect low capital expenditure requirements to spur investor interest in companies with sustainable business models that offer highly specialized services.
Carl Marks Advisors has a unique and proven ability to apply in-depth industry experience and knowledge to delivering highly customized solutions for professional services companies. Our investment banking and restructuring teams have worked with many companies in the professional services sector including a variety of marketing services, specialty finance, and consulting organizations.
Carl Marks Advisors’ role in engagements with professional services clients can include:
- Interim Management: Our team can step in to fill senior management positions in times of operational instability with seasoned CEO, COO, and CFO professionals.
- Operational Advisory: Our deep and experienced professionals provide operational tools and outputs to help clients understand the current state of their business including 13 week cash flows, business assessments and overall cash management.
- Restructuring Advisory: Carl Marks Advisors is well qualified to advise companies and/or its constituents through complex restructuring assignments including full balance sheet recapitalization.
- Buyside advisory: We help our professional services clients identify, negotiate, and complete strategic acquisitions and buyout opportunities that add value to their businesses.
- Sellside advisory: Carl Marks Advisors specializes in streamlining the sell process to uncover specialized buyers, discover optimal market opportunities, and ensure successful closes.
- Capital Raises: We help companies identify, structure, and close financings of all kinds, utilizing our broad network of money-center banks, hedge funds, specialty finance companies, asset-based lenders, private equity funds, insurance companies, and high net worth investors.