by Ken Schaefer
Often one of the first questions we are asked during an initial meeting with a company owner is if we have experience in an industry.
We do – in the transaction industry, researching and finding a target list of likely acquirers, preparing marketing documents, managing the sales process, and the diligence process through to the closing.
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. In addition, preparing a list of possible acquirers within a single industry can be somewhat limiting.
Our team researches the industry we are working in with the various tools at our disposal.
We delve into the company operations and processes and spend time interviewing management to produce the best possible product in our marketing materials.
We execute deep research into industry players, parallel industries as well as a private equity nationwide that may invest in the industry in question, and in the transaction size we expect.
With the tools at our disposal, we construct a comprehensive target list to find the best possible acquirers, and execute the best possible transaction, not necessarily the quickest transaction.
Our goal is to generate interest in the opportunity from a variety of sectors, ranging from industry players to synergistic, strategic and private equity groups. Our experience is that this process generally brings the best value for the seller who can feel confident that all bases have been covered.
BTS News
Manufacturer Sold and New Owner Expands It
BTS served as advisor in the sale of PlasTech Machining Fabrication, Inc. to DelCam Holdings in 2020...the company has grown substantially, doubling employment and adding capacity to boost future prod
How M&A Will Respond to Next Recession
The takeaway for business owners: Get back to basics. Don’t worry about hyper growth. De-risk your company as much as possible.
Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.
NH-Based Techinical Manufacturing Company Sold
Hampshire Controls has a bright future with new ownership. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Michael Pilon.
Be Ready When You Are Ready
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes.
Looking at a Sale Through the Right Lens
Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it.
5 Deal Points from the Trenches
Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.
Tax Changes Could Hurt Net Proceeds
Changes proposed to the capital gains tax suggest they may need to get 30% more in a transaction in the future just to net the same value they would get today.
Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups.
Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
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.
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.
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?
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.