Embarc Advisors is a financial advisory firm providing mergers and acquisitions advisory, CFO services, and sell-side Quality of Earnings analysis to founder-led middle-market businesses preparing for growth or a potential sale. Pulse 2.0 interviewed Embarc Advisors Founder Jay Jung to learn more about his background, the firm’s advisory approach, expansion into CFO services, successful transactions, competitive advantages, and plans to support more business owners throughout the financial lifecycle.
Jay Jung’s Background
When asked about his professional background and the experiences that led him to establish Embarc Advisors, Jung shared:
My background brings together three very different experiences. I launched my own entrepreneurial venture right out of college, so I know firsthand what it feels like to be a founder making big decisions with limited resources. I also spent time at Goldman Sachs, where I saw how institutional-grade M&A is done, and at McKinsey, where I learned how to diagnose a business and help leaders act on what they find.
I founded Embarc Advisors to bring those perspectives together for the middle market, which I believe is badly underserved. Founder-led companies in this space are often too small to be a priority for the big investment banks, but their owners face the same high-stakes decisions and deserve the same institutional-grade quality of advice.
How Embarc Advisors’ Investment And Advisory Thesis Has Evolved
Discussing how the firm’s strategy has evolved since its founding, Jung described its expansion beyond traditional M&A advisory:
When we started, we were focused on M&A advisory. What we learned quickly is that this segment needs more than a banker. Many middle market companies don’t have a full-time CFO, and their financials often aren’t ready for a buyer’s scrutiny.
So, we built a CFO Services practice to help owners strengthen their businesses well before a sale, and we brought sell-side Quality of Earnings (QofE) in house, because we consider it a must for every deal. Today we can support owners across the whole journey, from growth through exit.
Significant Firm Milestones
When asked about Embarc Advisors’ most significant milestones, Jung highlighted its team expansion and the development of additional financial advisory services:
We just hired our 30th employee! That means we’ve more than doubled in size in just over a year. Adding our CFO Services practice was another big milestone, because it lets us serve clients throughout their growth and exit journey, not just at the moment of a transaction.
Client Success Story: Achieving An Acquisition Multiple Above 8x EBITDA
Reflecting on a particularly successful transaction, Jung detailed how Embarc Advisors helped an IT managed service provider improve its financial position and achieve a stronger sale outcome:
One deal I’m especially proud of involved an IT managed service provider that, on paper, had several strikes against it. The company had no formal customer contracts, more than 15% of its revenue came from non-recurring break-fix work, and it had recently lost one of its largest clients. Those are the kinds of issues that typically drag down a valuation.
Instead of going straight to market, we ran a sell-side readiness plan, much like staging a home before a sale. We let some low-margin customers churn to improve EBITDA, and we commissioned a Quality of Earnings report up front to identify every defensible add-back and reduce the risk of surprises after the letter of intent was signed. The result was a leaner, more profitable business with a less concentrated client base.
From there, we built a story that addressed those weaknesses head-on and showed buyers what made this MSP stand out. Then we ran a competitive process that drew 11 bids. The top offer was more than double the lowest, which shows why running a real process matters: the highest bidder is usually a buyer who sees synergies specific to its own situation, and you only find that buyer by casting a wide net.
The seller ultimately closed an all-cash deal at more than 8x EBITDA, well above the 6 to 6.5x that MSPs of that size typically command.
The real game-changer, though, was taxes. Working alongside the client’s tax advisors, we structured the transaction to qualify for Qualified Small Business Stock (QSBS) treatment, which eliminated the seller’s federal capital gains tax liability entirely. Not deferred, eliminated.
Most middle-market owners have never heard of QSBS or learn about it too late, and it’s a big reason we bill hourly. A strong multiple is great, but what matters most is how much the owner keeps.
Industries Served By Embarc Advisors
Addressing the industries in which Embarc Advisors operates, Jung noted the firm’s experience in IT managed services alongside its broader industry-agnostic approach:
We have a strong presence in the IT managed services space, where we’ve built deep relationships with owners, buyers, and the broader MSP community.
That said, we’re industry-agnostic at our core. We’ve served companies in aerospace, landscaping, retail, manufacturing, and many other industries. M&A is a functional expertise. Exposure to a broad range of industries and situations prepares the M&A advisor for all types of situations to ensure they can overcome obstacles and get the deal done.
What Differentiates Embarc Advisors From Its Competition
When asked what distinguishes Embarc Advisors from other financial advisory firms, Jung emphasized its hourly-fee structure and ability to support businesses well before an acquisition process begins:
It comes down to two things: our fee model and our expertise.
On the M&A side, our unique hourly-fee-based advisory model enables us to provide smaller businesses with the institutional-grade quality of service they deserve. Because we aren’t relying solely on a large success fee, our incentives stay aligned with what’s best for the owner, not just with getting a deal done.
Because we bill hourly, we are able to provide earlier and broader scope of service. We can do the seller’s Quality of Earnings analysis to make sure EBITDA is maximized. We can also work with the client 1-2 years in advance as their CFO to optimize the business and maximize value before going to market.
Challenges And Lessons Learned In M&A Advisory
Reflecting on challenges encountered while building Embarc Advisors, Jung recalled an early experience that changed how the firm approaches financial due diligence:
Our very first client taught me a lesson I’ve never forgotten. The owner assured us the books were clean, and I took that at face value. Then the buyer’s Quality of Earnings review picked the financials apart, and it put real pressure on the deal.
I’ve never taken a client’s word that their books are “clean” since. We now do a sell-side QofE on every transaction. It surfaces issues before a buyer does, gives the owner a chance to fix or explain them on their own terms, and it has paid for itself every time.
Future Firm Goals
Outlining Embarc Advisors’ long-term ambitions, Jung discussed the opportunity to serve more middle-market businesses and expand the firm’s role as a financial resource for entrepreneurs:
There are roughly 200,000 middle market companies in the U.S., and every one of those owners will exit at some point. Our goal is to keep scaling so we can be the financial resource this market needs.
Between our M&A advisory, CFO Services, and QofE teams, we can support the full financial lifecycle of founder-led middle market companies.
We also have a very strong referral network. When owners go through a sale, they need trusted attorneys, lenders, and wealth managers for life after the deal, and we connect them with the right people.
We want to give our clients the white-glove service that’s typically reserved for much larger enterprises.
