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

  • Transition to Freedom explores business transition experiences

    Transition to Freedom explores business transition experiences

    Hats off to MJ Schoer for sharing his fascinating multi-level business transition story to a well attended meeting jointly presented by Business Transition Strategies and mPower Advisors.

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  • Four buyers, three values, one winner

    Four buyers, three values, one winner

    Businesses we sell typically go to market without a preset asking price. Why? Value is really in the eye of the buyer. And that can vary widely, depending on who they are and what they have in mind.

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  • Strategies for growth or time to sell?

    Strategies for growth or time to sell?

    Has your business gotten to the point where it could grow but you’re not certain about taking the risk?

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  • Timing is Everything-Capitalize on Opportunies

    Timing is Everything-Capitalize on Opportunies

    Timing and value are both important An old proverb comes to mind this time of year. “Make hay while the sun shines.” Take advantage of clear weather. Capitalize on opportunities. Avoid the rain.

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  • M&A Trend Impacts Smaller Companies Too

    M&A Trend Impacts Smaller Companies Too

    Lower mid-market company sales are often influenced by larger M&A deal flow. A recent article on the Forbes website illustrates this point. Here’s why.

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  • New Chapter for Polartec

    New Chapter for Polartec

    Many in New England will remember December 11, 1995 the day that Malden Mills, the maker of PolarFleece® and the employer of thousands, burned to the ground. The company made headlines again June 12.

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  • A Good Process Gets Results

    A Good Process Gets Results

    Companies in the lower mid-market often are surprised when they attract attention from larger entities, even those whose balance sheets dwarf the target. Why do small companies attract this kind of in

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  • M&A Tip- Make Sure We Know Your Goals

    M&A Tip- Make Sure We Know Your Goals

    It’s a good idea for owners to be clear about their goals when discussing the sale of their company with the M&A advisor.

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  • M&A Advisor Tip: Intangibles Matter

    M&A Advisor Tip: Intangibles Matter

    Intangible assets can play a significant role in your business value. While these may not take physical form, they can be legally identified and transferred. It can be a hard exercise, especially w

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  • Selling Your Business? Get Clear About Why

    Selling Your Business? Get Clear About Why

    We regularly have conversations with owners about selling. As part of these discussions we take time to talk about the ‘why’. This almost always leads to one of ten core factors, each of which req

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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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