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

  • Deal Problems to Avoid

    Deal Problems to Avoid

    It is common for owners heading into a sales process to ask about the chances of success. The question reveals the natural nervousness everyone feels when we head down an uncertain path.

    Read more >

  • View Your Business from a Buyer’s Perspective

    View Your Business from a Buyer’s Perspective

    The more your business revolves around you, the more risk buyers see. Work yourself out of the business by developing an experienced, empowered management team, and repeatable processes that depend le

    Read more >

  • Questions That Owners Consider

    Questions That Owners Consider

    We have had many conversations with business owners in the lower mid-market who are unsure about the future and wonder whether they should sell or hold.

    Read more >

  • SBA Debt Relief Incentivizes Buyers

    SBA Debt Relief Incentivizes Buyers

    SBA debt relief efforts are incentivizing buyers to move ahead with business acquisitions.

    Read more >

  • Don’t Let the Pandemic Sideline Your Dreams

    Don’t Let the Pandemic Sideline Your Dreams

    As we emerge from the Covid 19 shut downs, some may be fearing “oh no, I am stuck in the saddle again.” We think there is reason to look at the horizon more positively. That involves taking actio

    Read more >

  • Prepare for the Market Rebound

    Prepare for the Market Rebound

    For many business owners, the economic effects of the COVID-19 pandemic have been devastating – especially for those who were planning to sell their businesses.

    Read more >

  • Using Downtime to Add Value

    Using Downtime to Add Value

    As business owners are working to process the impact of COVID-19, we’re looking at how it will affect M&A. The good news is that many companies and private equity firms have been doing well for year

    Read more >

  • Are Buyers Still in the Market?

    Are Buyers Still in the Market?

    We believe that mergers and acquisitions will continue once the current crisis ends...based on the volume of inquiries from private equity funds, search funds and well-funded individual buyers.

    Read more >

  • Use the Threat to Better Prepare

    Use the Threat to Better Prepare

    Today there is a lot of uncertainty about the future of business...there are things you can do to prepare for an eventual sale of your company– especially now.

    Read more >

  • Crisis Shows Ripple Effect of Business

    Crisis Shows Ripple Effect of Business

    Our focus at BTS is on small companies that are the backbone of the economy...This gives us exceptional insight into what it is like to be owner-operators.

    Read more >

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.

    Read more >

  • 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.

    Read more >

  • 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?

    Read more >

  • 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.

    Read more >