“We are not just a typical M&A firm; we bring a mix of strategic advisory, technology advisory, and other financial advisory options to our M&A strategy to optimize effectiveness and are committed to our clients’ success,” says Mr. Prasad Karcherla, Managing Partner of Nexeon Business Advisors, who is a FINRA-licensed investment banker, startup, strategy, and M&A advisor.
Mr. Karcherla is a renowned executive and a successful entrepreneur, having started and grown various businesses previously, with extensive experience in finance, strategy, management, operations, technology, and investments. Under his strategic leadership, Nexeon Business Advisors undertakes a holistic approach when working with clients. Nexeon closely looks into clients’ businesses to discover areas of improvement and helps to improve and stage businesses in the best possible way. This strategy plays a vital role in enhancing the visibility, salability, and eventually getting the best valuation for clients.
Karcherla’s knowledge in the technology field enables Nexeon to advise clients to utilize cutting-edge technologies to improve their business and market positioning. For example, the market is currently interested in businesses with SaaS revenue models, as they ensure continuous and reliable revenue streams. Consequently, Nexeon advised many companies to use the right technologies efficiently to transform their businesses and revenue models to be easily scalable and develop recurring SaaS revenue models for better market positioning, salability, and valuation. In many cases, Nexeon received two to four times higher valuations than client expectations because of this strategy.
Nexeon also helps buy-side clients invest in or buy the right target companies. Nexeon conducts a thorough SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis on target companies and allows them to acquire the right company at the right valuation, which fits their acquisition strategy and helps them achieve their strategic goals.
The robust capabilities of Nexeon Business Advisors are best exemplified through case studies. One such example is an IT-Managed Services Company struggling due to its projectbased services and inconsistent revenue streams. Nexeon Business Advisors advised them to turn their project-based business model into a subscription-based SaaS revenue model. This generated sustainable and consistent recurring revenues for the client and helped them get much higher buyer interest. Within three months, the company was acquired by a large strategic international firm with a very good valuation, taking the client company to the next level.
Leveraging my expertise in Finance, Strategy, Management, Technology and Investments plus my experience in owning and managing various businesses during my career, I can guide and help clients to achieve their strategic and financial goals efficiently and effectively” says Mr. Karcherla.
In another instance, a healthcare training client faced problems while training healthcare providers during COVID-19. Nexeon advised the client to shift their content to an online platform, enabling the client to cut down on costs for the trainers, classrooms, and conference rooms. Consequently, the client enhanced their profit margin from 10 percent to 60 percent. This client received eight to nine times multiple on EBITDA as valuation for their business.
These instances of client success are testaments to Nexeon Business Advisors’ holistic approach and the ability to efficiently serve clients and help them achieve their goals.
In the past three years, Mr. Karcherla worked on over 50 deals and brought in over $300 million of transactional offers/valuations for his clients.
Undoubtedly, in the coming years, Nexeon will help numerous sell-side clients get the best valuations for their companies and help buy-side clients acquire the right businesses at the best valuations to fit their growth strategy.