Client Case Studies

Quantum Leap Strategies has helped many businesses get started, fine-tune finances, or acquire additional funding. You can learn more about how we’ve helped clients through the links below.

Can you help me with my business plan?
Let’s face it—the future success of your business (or business idea) depends on one very important document—your business plan. Without one, convincing investors or lenders that you have a concept worth investing in or lending to is pretty much impossible. That’s where Quantum Leap Strategies comes in.

An entrepreneur needed some help putting together a business plan that would deliver results—the capital needed to get a new company up and running. The entrepreneur had already drafted a business plan, so we reviewed and edited it, making sure critical plan elements were represented and complete. Then we drafted a term sheet for private equity financing, and discussed the entrepreneur’s needs with representatives of potential investors.

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Should I purchase an existing business?
Buying a business is both exciting and stressful—a prospective buyer certainly doesn’t want to overpay for a business, nor does he or she want to underestimate both the potential and the risk involved.

Quantum Leap helped the potential purchasers of a storage supply business negotiate a purchase price and structure that also allowed for unexpected changes in circumstances in the future. We used several approaches to assess the potential value of the business, including projections of future revenues and expenses based on the product potential, management, and employee strength of the business. Then we prepared a term sheet (including pricing) that reflected the objectives, interests and concerns of both the buyer and seller, and we discussed and negotiated proposed terms with the major creditor of the business. As a result of the purchase offer, the seller ultimately modified the capital structure of the business to help address the needs of a major creditor, the prospective buyers, the existing owner, and the business itself.

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Should I rent or buy?
Sometimes renting office space is a better solution than purchasing real estate—but there are many factors to consider before jumping into either option. Quantum Leap Strategies helped the owner of a professional photography business evaluate two commercial real estate options before making any decisions or investments.

The owner was considering:

• Buying an existing office building with a partner to rent to third-party businesses, or
• Acquiring an existing office building to house the owner’s business.

To help the owner make a wise decision about what to do, we discussed issues surrounding partner-and-tenant relationships, financing needs, the owner’s investment risk profile—and the possible return on an investment. Then, we reviewed the advantages and disadvantages of owning and renting office space. Understanding the pros and cons of each choice enabled the owner to make a decision that enhanced the long-term economic vitality of the business.

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How do I find equity capital?
Money. It takes just the right kind and amount of it to ensure that debt and equity capital are in healthy proportion.

Many business owners need equity capital, but they often face major challenges in preparing financial projections and business goals that effectively communicate needs to potential investors. Quantum Leap helped the founding owner of an Internet communications company prepare extensive cash flow forecasts that addressed a number of different product, pricing, and customer combinations and scenarios. We reviewed and revised the company’s business plan—especially key goals and the mission statement—then discussed a possible capital structure for the business, including ownership stakes for the founder and employees. With our help, the founder was able to present the business plan and financial projections to an international media organization in a way that maximized objectives, interests, and expectations of the founder, while furthering the media organization’s own goals.

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Does my business have sufficient capital for future growth?
When a business adds salaried employees and invests in additional infrastructure, it becomes much more concerned about generating consistent revenue and retaining capital in the business for future expansion. Business owners must also consider how to balance personal compensation and extra cash the business must maintain for unexpected events.

Quantum Leap helped the owner of a Web site design company determine its current financial position by evaluating financial statements and highlighting inconsistencies and inaccuracies. First, we helped revise the company’s financial statements to represent the business completely and accurately, then we helped the owner understand several alternatives for personal compensation, as well as how to distribute some ownership and responsibility to the employees. In the end, the business became a partnership with the original owner having a less-than-majority position in the company, and employees who were potentially more dedicated because of their new stake in the business.

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How can I get what I need when negotiating?
Being a good negotiator is vital to the financial health of your company. Over- or under-estimating your needs or cash flow can have serious consequences. Will you be able to negotiate the best possible lease agreement for your company? How long should you lease?

The owner of a cosmetology business had similar concerns before contacting Quantum Leap Strategies. Once we got involved, we evaluated the company’s business, operations, and financing options. Then we advised the owner on working capital, management of day-to-day operations, and the negotiation of a lease agreement with a potential office space provider. We also helped negotiate debt financing terms (including an equity option) that the owner and a prospective lender could live with.

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Should I consider selling my business?
When should you consider selling your business? Is selling the right solution? Before making any decisions, you need to consider potential future cash needs or profits from the business, current valuations for similar companies, and how willing you are to stay sufficiently committed to the business into the future.

Quantum Leap was approached by the owners of a telemarketing company who were contemplating selling the business, but needed more information to make the right decision. We helped them assess the future cash flow potential of the business, taking into account both revenue opportunities and possible fixed and variable costs. In addition, we provided the owners with an assessment of how much capital might be needed to support the business (and when that capital might be required), as well as suggested sources and structures for that capital. With our help, the owners were able to see a complete picture of future needs and possibilities, and were able to make the decision to sell the business without much reservation.

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