Kalos LLP: The Best of Both Worlds 

With expertise spanning transactions, diligence, and advisory, Kalos LLP is, at its core, a world-renowned and multi-award-winning Certified Public Accountant (CPA) firm. Established by, and comprised of, previous members of the Big Four who possess a like-minded entrepreneurial spirit, Kalos brings with it to the table the ‘bench strength’ of the Big Four, complete with a boutique service that these bigger organisations cannot possibly provide given their scale. In essence, it is this winning combination that has resulted in Kalos LLP being named as the Transactions Advisory Firm of the Year 2024 – Canada.

Leveraging their experiences in high-level positions at Ernest & Young and KPMG – two of the Big Four accounting firms – respectively, the couple of Mackenzie and Travis Regent co-founded Kalos LLP in 2019, in order to afford clients intimate access to some of the industry’s top players. Kalos’ boutique nature sees its team of seasoned accountants guide a number of small and mid-market businesses and financial sponsors through the complex mergers and acquisitions process with ease, offering personalised support and outstanding financial due diligence every step of the way.

This is true regardless of the client, and, unlike many of the bigger firms, the full attention of this firm is provided regardless of the size of the deal. So, whether for a $1 million transaction or a $1 billion transaction, those who choose to work with Kalos will gain access to a team of consummate experts, every member of which boasts at least a decade of experience in this setting. Moreover, since staff here focus solely on financial due diligence (earnings), valuation, and supporting transactions, their specialities are defined, and their concentration is unwavering.

“We believe superior value in financial due diligence is accomplished through experts designing an individualised scope of work that focuses on areas that add value while avoiding excess cost on minor points”, says Co-Founder Mackenzie Regent. A disruptive ethos such as this is something that can only be found with boutique firms like Kalos, which are in a unique position in the market to be able to offer an agile service designed entirely around providing the right service and diligence procedures for every unique deal, not just a one- size-fits-all solution.

Kalos – which translates to good in Greek and was a phrase historically used to refer to the warriors who upheld the highest moral standards during battle – then possesses all of the necessary statistics to more than back these ambitious claims up, and then some. For example, it possesses more than 125 billion dollars’ worth of combined transactions advisory experience and has carried out almost 4,500 financial due diligence and quality of earnings mandates, as well as having undertaken over 375 mandates for the Chartered Business Valuator (CBV Institute).

Since these numbers simply offer an overview, Mackenzie provides us with some more examples of the past deals that have resulted in good outcomes thanks to Kalos. In the first example she explains, Kalos acts as the advisor to a strategic buyer executing on their growth by utilising acquisition strategy. Initially negotiated based on the sell-side’s forecasted growth, the team at this renowned transactions advisory firm were able to secure a renegotiation of the adjusted EBITDA based on actuals, meaning that the final price for their buyer was reduced by approximately 30%.

Another fitting example comes from a time when Kalos again acted as a buy-side advisor, in this instance to a financial sponsor that was in the market to purchase around 80% of a globally operating manufacturing business that it had its eye on. Following a series of careful inventory accounting adjustments and the negation of the business’ net working capital metrics, these specialists were able to reduce the final purchase price by approximately 25%, an incredibly impressive feat which showcased their immense talents.

In the final instance Mackenzie recounts to us, a private company had been approached for a buyout, unsolicited, by a financial sponsor in possession of more than $150 billion in assets under management. With Kalos on its side, the seller was afforded expert advice, leading them to begin negotiations surrounding the likes of revenue run-rate and contribution margins. Once again, Kalos’ client finished off in a much stronger position than they had started in, and the final purchase price was around 67% higher than what had previously been offered.

Results such as these speak volumes about the efficiency and the excellence of Kalos’ day-to-day operations, and its past portfolio of clients spans a host of private and public companies that have all sought growth out, either through acquisition or on the back of complete divestitures. Additionally, Kalos’ experience supporting a number of diverse financial sponsors both across North America and Europe on both the buy- and sell-side of transactions makes it a company that upholds its dual promise of maximising value for a client and helping them to close deals with confidence, at every turn.

The company culture that Kalos has nurtured is based heavily on this above value statement and is aided further by the belief that teamwork is an integral element in staff reaching the heights that would otherwise be unreachable. Underpinning the firm’s entire method is a series of lived values, and whilst these may largely be textbook –including the likes of integrity, care, courage, grit, and ownership – it is how they so effectively penetrate the company at every level of its operation that makes them imperative cornerstones of the Kalos brand.

With Kalos, there is none of the unnecessary deal fatigue which can prove detrimental to the success of a deal, as this is a team acting on their passion for creating a due diligence process that finds solutions, not just problems. By placing its emphasis on the right matters at the right time, this firm is continuing to carve out a niche in this sector, offering up the best of both worlds for those clients in search of industry-leading expertise combined with an altogether more personalised customer experience.

Having spotted a keen gap in the market for services relating to mid-market and small companies and financial sponsors, Kalos entered this niche five years ago bolstered by world- class knowledge and all of the skills necessary to succeed. It has not disappointed in the years since, and, recognised in this feature for the second consecutive year, it is our pleasure to once again heap well-deserved praise upon Kalos LLP, this time recognising it as the Transactions Advisory Firm of the Year 2024 – Canada.

For business enquiries contact Mackenzie Regent at https://www.kalostransactions.ca/