Capital Management is where every engagement begins. We analyze the business and the Ownership behind it, model what the company is worth and what it could be worth, and put numbers to the paths in front of the Owner. Two objectives govern all of it: free cash flow rising, and the cost of capital falling. The analysis comes first, the destination is allowed to change, and everything the other two pillars execute traces back to what gets decided here.
Capital Management path Capital Management Initial milestones complete: new options join the path. It begins with a memo. Two objectives: free cash flow rising, cost of capital falling. Analysis. Learning. A living record of progress. Σ FCFF ( 1 + g + LAE )t ( 1 + WACC − LAE )t Paths valued: outcomes, risks, profits, options. The destination is allowed to change. Where, FCFF = Free cash flow to the firm g = growth rate WACC = weighted average cost of capital LAE = Leather Apron Effect
SERVICES
BEHAVIORAL FINANCE
We start here, because the numbers follow the people, not the other way around. Understanding how Ownership actually behaves, its tendencies and limitations, and saying so plainly. The same eye goes to the risks only your company carries, magnified at the closely held level: the ones you can’t diversify away deserve the most attention.
FINANCIAL MODELING
Our models are used daily by the Owner and CFO. Every model is built from scratch, no templates, because your business doesn’t run on someone else’s logic. We start with your customers and what actually drives them, working down the ledger until every cost makes sense, modeling cash flow statements and balance sheets with equal emphasis.
CAPITAL STRUCTURING
We help the Owner and CFO finance a profit-producing purse of assets, squeeze cash out of it when that’s the move, or hold a healthy balance when it isn’t. Capital investments get the same discipline, financing matched to asset life, timing positioned against the cycles.
EARNINGS AND CASH FLOW ANALYSIS
Measures of adjusted earnings, adjusted EBITDA, and free cash flow, modeled in accordance with behavioral tendencies.
VALUATION AND PROJECTIONS
We value the company as it stands today as a going concern, then value the path options possessed by Ownership, an ultra comprehensive picture that holds up with lenders, capital providers, and buyers alike. Annual projections carry it forward, built the way an institutional portfolio manager would want to receive them.
ACTUALIZATION
Where the analysis becomes real. With capacity fully measured, the business can take an objective view of its optionality and the outcomes.
GLOBAL ANALYSIS AND CAPITAL PLANNING CONTINUATION
We analyze the business and the Owner’s personal financial resources as one cohesive unit, including contingent liabilities. Personal guarantee power is the concept of valuing their personal guarantees as an asset to match the corresponding liability.
ABSTRACT ANALYSIS
The analysis nobody can name until the situation produces it. Every pillar here ends the same way, on the unnamed work, because that’s what Leather Apron does best: unconventional questions, taken seriously, answered with the same rigor as everything above.