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FAQ

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.

 

 

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Case Studies

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