There are many investment banking firms in the world, but only one Kratos Capital. What sets the company apart is not necessarily its range of services or its depth of experience, though both are extensive. Rather, what sets the company apart is its friendly, personal touch. The company earnestly seeks to bring a touch of humanity to a business that can sometimes seem a bit faceless.
Kratos Capital offers its clients a full array of investment banking and M&A advisory services. The company is most noteworthy for approaching each client in a personal and comprehensive way. The focus is always on educating clients, while helping them close their acquisitions and transactions—in effect, ensuring that they fully understand the actions being taken on their behalf.
Kratos Capital in Review
The company is a privately held firm. This allows it to operate independently, which is advantageous for its clients. The firm focuses specifically on middle markets in the United States, Canada, and South America.
The company is an experience-based, highly effective firm. The resources and technology that Kratos Capital brings to its industry are largely unparalleled among the business’s competitors. Subsequently, Kratos Capital consistently ranks among the most successful and active middle-market M&A advisors.
What Makes the Company Unique
Beyond that, however, what are some of the attributes that set Kratos Capital apart from others in its vertical? Experience is one of the company’s watchwords. It has ample experience in middle markets, which encompasses companies with earnings ranging from $5 million to $75 million in annual revenue. The role of Kratos Capital is to maximize the value of clients’ acquisitions, and of their investments in time, money, and hard work.
Equally important is the fact that Kratos takes pride in creating customized solutions that result in maximizing transactional value for sellers. Each company reflects the character that its owner brings to it, and no two businesses are ever quite alike. The exit strategy should not be, either, which is what makes this firm’s customized approach to M&A advisory so important.
The Importance of the Custom Approach
This last point is significant. Simply put, Kratos operates under the notion that the cookie-cutter approach does not work in the M&A field. Other firms may propose this one-size-fits-all approach, but this is neither the most efficient nor the most cost-effective way forward. In most cases, it creates only deal fatigue and a truly frustrated client.
“Allow for one of our bankers to perform a customized Economic Reality Analysis (ERA) and together we can determine if we can serve you,” Kratos Capital notes. “If we can’t, at least you have a real time sense of your exit reality in these difficult economic times.”
In fact, the provision of professional economic reality analysis (ERA) reports is one of the things that sets Kratos Capital apart. It offers these reports, as well as deal-making services, to middle-market companies throughout North and South America. “We try to be as transparent as possible,” the company explains. “If we simply are not able to help a client, then we will show them why, and just say no rather than lead them on.”
Personalization and transparency are both imperative for Kratos Capital, but they would mean nothing if the company wasn’t also able to deliver high levels of knowledge and experience, which is the next (and arguably the most important) point to make about the firm.
A Knowledgeable Firm
The team at Kratos Capital offers a diverse set of transactional experience that enables the company to deliver the sophisticated skills needed to execute large M&A transactions. The firm tempers this with the sensitivity needed to understand issues that are unique to middle-market businesses.
The principals of Kratos are all members of the Alliance of Merger & Acquisition Advisors, a professional affiliation that speaks volumes about Kratos’ professionalism. The AM&AA is the premier international organization that serves the educational and transactional support needs of middle-market M&A pros. The organization was formed in 1998 to connect CPAs, legal professionals, and other corporate financial investors and advisors; currently, it boasts membership in excess of 900.
These 900 professionals are among the most widely recognized leaders in the industry—so clearly, Kratos is in excellent company.
Another important point to make about the AM&AA is that it is committed to the ongoing education of its members, seeing this as integral to the provision of superior M&A advisory services. The foundations of its educational program include a Certified Merger & Acquisition Advisor program, known as the CM&AA. The AM&AA organization meticulously qualifies members as candidates for this prestigious designation—and of course, the Kratos Capital principals are happy to have achieved it.
Candidates for this certification are eligible when they have achieved an advanced academic degree and can furnish evidence of an advanced business credential. This might include a designation such as Certified Public Accountant, Certified Financial Planner, Certified Management Consultant, Certified Valuation Analyst, or Certified Business Intermediary. The AM&AA Board sometimes promotes a candidate without these designations, in exceedingly rare instances, provided they have shown an extensive background of industry knowledge and transactional experience. Even after candidates are entered into the program, rigorous testing is required before the certification is offered.
The achievement of this designation is significant, however. Once obtained, this highly respected designation denotes the highest recognized standards of professional excellence in middle-market corporate financial advisory and transaction services. It also provides a benchmark for professional achievement within that overall body of professional competence. This internationally recognized certification essentially distinguishes the Kratos Capital team from its competition, and proves the Kratos team to be truly superior in its mastery of the field.
What Clients are Saying
This impressive professional designation is one sign among many that Kratos is a truly upstanding and outstanding firm; another is the sheer volume of positive client feedback that the company receives. Here is one such testimonial, from a former client: “Kratos Capital provided unmatched, hands-on, senior-level attention throughout my transaction. The team worked tirelessly to execute a highly disciplined process in order to maximize my sale price. Not only did Kratos provide expert negotiating support, but the team also devised a unique transaction structure, which overcame a potential deal breaker and created additional shareholder value.”
There are more testimonials where that one came from—such as this one: “The Kratos Capital team was 100 percent dedicated in ensuring a successful outcome to our transaction. Not only was the team available and responsive 24/7, but the senior-level attention was clear from the start and helped us navigate challenging, industry-specific issues that required true expertise.”
Here is one final testimonial of note: “The Kratos Capital team was great to work with. Their industry knowledge, M&A experience and professionalism was invaluable in completing this complex transaction and creating a successful outcome. They treated our sale process with considerable care and attention, were with us at every turn and left no detail, no matter how small, to chance.”
These testimonials speak volumes—and what they say is that the firm is able to attend to the diverse needs of its client base, with both friendliness and unparalleled M&A competence.
A Brief History of Kratos
Positive reviews like the ones cited above are really nothing new for the company, which has a lengthy history of providing superior services. In fact, this is really why Kratos was first started—to serve clients.
“I worked for a larger M&A house and found the mid-market could be served better,” the company’s founder has stated. “I found the way that my company acquired their customers was questionable. The expectations the clients were given were not the expectations the house really had. So, I left in 2007 and created Kratos. We started out doing business consulting, and through the years we slowly became a full-fledged house, representing mid-market companies, taking them to market, and selling them.”
The heart of Kratos is best summarized in this statement: “This company was founded with the intention of helping people sell their business, not to separate people from their money. This is the principle on which the company was founded. Many other M&A firms work to cast a wide net and capture as many businesses as they possibly can, which is not Kratos’ goal at all. The ultimate goal here is to help and educate their clients, not take advantage of them. This is core to our ethics.”
Putting the Client First
This client-centered ethos is a big part of what sets Kratos Capital apart from its competition, and makes it a truly unique firm. As the founder says, there are many M&A firms that will do whatever it takes to capture as many businesses as possible, but its not so at Kratos. At Kratos, the goal is always to find a good fit, one from which the client ultimately benefits—period.
Combine this with the firm’s immense transactional experience and knowledge, and you have a truly unique M&A advisory house. All of this helps to establish Kratos Capital as being a cut above the rest, and a firm worthy of consideration.