Why is confidentiality critical?

All interested parties are required to complete a non-disclosure agreement before any information is shared. Employees can become prematurely worried. Customers may grow concerned. Competitors who aren’t pursuing an acquisition may use the information to enhance their market position. That is why confidentiality is a cornerstone of our operation.

What do you mean by create a market?

We invest a lot of energy to research, and develop a specific marketing plan for each engagement. We actively develop interest by confidentially contacting buyers who may view the company as a good acquisition. Targets include strategic buyers, private equity investors, well-funded individuals and others. We do not wait passively for interest, but contact them directly to generate interest. Our goal is to develop a competitive environment so the owner receives the best possible value.

What do you mean by “preparing a company”?

We review the company to find opportunities for enhancement. This generally involves an owner who is not quite ready to sell, but would like to take that step some time in the future. The valuation process provides today’s value range, and the process of comparing to certain industry metrics can suggest enhancements. A review of operations may find areas for adjustment. A pre-diligence review can identify details that will be needed for a sale to be completed.

What is due diligence?

After an LOI is signed, the buyer will begin a detailed review of finances, operations, legal structure and more. It can be a daunting process, with many questions raised and new information needed. We begin early gathering of information we have found most buyers want, and then supplement this list with specific requests. When the time comes, we serve as a conduit for information so the owner can stay focused on the business.

When is the right time to sell?

It is best to consider before you have to, and while you can see a sale through.  Often deals come with contingencies that may require your attention post sale, so waiting too long might cut into what you have in mind for life after the sale.  Efforts to pick the peak time rarely yield the desired outcome. There are many issues to consider, both business and personal.  However, it is better to be dealing with these while you have options.

What does an M&A Intermediary do?

We work with the seller to prepare for a sale, develop materials that tell the story of the company and then proactively seek buyers.  These range from strategic groups looking for expansion to private equity buyers seeking an investment.  There are also highly qualified individual buyers seeking new opportunities and we have a number in our database, too.  We quarterback the process, start to finish, and work with your other professional advisors to seek the best outcome.

Should we go to market with a price?

Generally, we do not price the company.  Rather, we ask buyers for proposals and then review these with owners.  Because we are proactive in our buyer search, we ask for buyers to give their best proposals.   That doesn’t mean anything goes.  Rather, the process we use to focus interest is intended to provide owners options for a decision.  There are times, however, when putting a price on the business is effective. We will use this when appropriate to accomplish the seller’s goals.

How does going to market without a price benefit the business owner?

The methods and tactics outlined above result in the owner actually exiting at their time of choice.  They also result in the highest value available in the market as different classes of acquirers are approached and a specific, targeted market is created for the single asset; the business being marketed.



BTS News

  • The exit decision- timing and issues

    The exit decision- timing and issues

    When should a business owner start thinking about planning their exit? Early! This is a high-stakes decision and should not be first contemplated when it is imminent.

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  • April PEG investments

    April PEG investments

    It is interesting to watch trends in private equity investments. In general, they reflect confidence in the value of making things. Transactions give insights on the broader acquisition environment, p

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  • M&A among top priorities of CEOs

    M&A among top priorities of CEOs

    CEOs in wide range of sectors are optimistic about the current business environment and significant segment listed mergers and acquisitions among their top priorities.

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  • Preparing next gen leadership for transition

    Preparing next gen leadership for transition

    Advance preparation can be helpful in creating a smooth transition in ownership, particularly for manufacturers owned by Boomer founders seeking retirement.

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  • Acquisition trend continues with sale of NH company

    Acquisition trend continues with sale of NH company

    Evidence continues to mount that companies are buying other companies to grow, and that does not necessarily solely involve mega mergers or equate into a dismantling of founder-run operations.

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  • MarketPulse survey sheds light on buying trends

    MarketPulse survey sheds light on buying trends

    A theme emerged in the most recent MarketPulse survey of intermediaries in the lower mid-market: companies continue to expand through acquisition, to gain market share and to add qualified personnel.

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  • Good Options for Owners: ESOP versus Third Party Sale

    Good Options for Owners: ESOP versus Third Party Sale

    Taking the ESOP route is not an all or nothing approach to business ownership transition.

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  • Private Equity Trends

    Private Equity Trends

    More and more PE firms are searching for smaller transactions. The reason for this is simply competition

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  • Using a Specialist in M&A

    Using a Specialist in M&A

    While using an industry specialist to market a company may save a few days in preparing the offering materials, there is the danger of a cookie-cutter approach.

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  • Legal Breakfast Series: How I Sold My Company - A Case Study

    Legal Breakfast Series: How I Sold My Company - A Case Study

    Attorney Peter Burger and John Howe of Business Transition Strategies will be the featured speakers during the latest Orr & Reno Legal Breakfast Series on Wednesday, June 14 at the Orr & Reno offices

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Case Studies

  • Precision Machining Company

    Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.

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  • Green Product Company

    Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.

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  • Water Purification Company and Young Buyers

    Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?

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  • Magnetics Company with High Profile Customers

    (T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.

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