Acquisitions
Mergers & Acquisitions
Although the economy and capital markets are in turmoil and likely will continue to be, there is still a strong demand from investors for mergers and acquisitions investment opportunities. This demand is driven largely by (a) private equity groups who have accumulated significant amounts of capital and are finding pressure to consummate transactions, and (b) corporate investors who are looking to supplement their slowing organic growth with strategic acquisitions.
Because of Access Business Advisors affiliation with Sunbelt Business Brokers (who has 250 offices throughout the world), we remain in touch with the mergers and acquisition community and in constant contact with active mergers and acquisitions investors. We target a segment of the middle market comprised by privately-held companies with annual sales of $5 to $100 million.
Our Mergers & Acquisitions division provides investment banking services specializing in business sales, merger and acquisition advisory services for private middle market companies which seek maximum value for their business.
Businesses that meet some or all of the following criteria are usually considered qualified for an M&A transaction:
- Business has revenue greater than $2 million.
- Business is attractive to financial or strategic buyers.
- Business owner wants to…
- Exit completely
- Exit partially and partner to grow the business
- Consider management or family in succeeding the business
We are unique in our capacity to bring extensive financial, legal, managerial and entrepreneurial experience to the table in addition to our investment banking expertise. Our dealmakers are former entrepreneurs who have experience as principals in both buying and selling of businesses.
Our M&A division is focused and process-driven and brings new depth and dimension to the middle market. Through our varied experience and insight in the field, we understand when a fresh approach is needed in order to gain an optimized value from a transaction.
THE MERGERS AND ACQUISITIONS PROCESS
When the owners of mid-market companies decide it is time to sell their business, many are unaware of the service provided by the professional mergers & acquisition intermediary or they may have the misconception that the intermediary is only a “finder” who locates a buyer and gets out of the way. In truth the complete professional M&A process is from start to finish and should add at least 25% to the eventual sales price.
The complete professional M&A process has three major interlocking phases.
- Recasting the company’s financials and growth planning
- Marketing – confidential, proactive and exhaustive.
- M&A negotiating to close and deliver the best deal to the client.
The professional mergers and acquisitions process is the only way to ensure that the best deal has been achieved for all parties.
Recasting And Growth Planning
provides the future cash flow potential of the company, which is critical to maximizing the deal. Buyers buy to grow and maximize their future cash flow. The price they offer is a function of their understanding of the growth potential. The growth plan is created to educate the potential buyers on the seller’s marketing, operational, and financial potential. The growth plan, in essence, sells the future of the business to the potential buyers. The best deal can only be reached when all of the qualified and motivated buyers believe the company’s future cash flow potential. Then the M&A intermediary can “artfully and professionally” guide and motivate the buyers to submit their best offers.
The Purpose Of Intermediary’s Marketing
is to communicate confidentially with every possible buyer who has the necessary business strengths, weaknesses and resources to take maximum advantage of the seller’s growth potential. The best deal can only be achieved when “all” qualified potential buyers have been identified, contacted and educated on the potential of the company.
In The Negotiations Processes
The intermediary will weed out the marginal buyer candidates until only qualified and motivated buyers remain. At that point the M&A intermediary will generate the maximum offer from the final group by carefully and diplomatically levering each prospect against the final group. Then the M&A intermediary will help the client select the “best” from the highest offer. Once the best offer is accepted the process is characterized by complex legal negotiations and intense due diligence activities. The M&A intermediary must be able to facilitate seemingly endless emotionally charged and technically complex information exchanges on an efficient, timely basis. This art of competent and consistent yet friendly communication facilitation is critical to an efficient closing. The M&A intermediaries are unique in that they have an overview of the entire process whereas attorneys, accountants, etc. have as their professional goal a complete legal document offering their respective client minimum risk. The M&A intermediary must start with the legal professions traditional ending goal and add the critical goal of building trust and a viable working relationship between the seller and the buyer’s team. Long term success of the deal will be a function typically of the trust and working communication process between the seller and buyer. This unique advisor position allows the M&A Intermediary to contribute to long-term deal success.
The professional M&A Process is the only way to reach the highest buyer prospects within the marketplace. The highest price can only be reached when all qualified and motivated prospects fully believe the company’s future cash flow potential. The M&A Intermediary can then guide and motivate the buyers to submit the best offer. The best offer is only known without doubt when the professional M&A process is fully executed.
Years of experience, hundreds of conversations with M&A intermediaries indicate that the professional M&A process adds significantly to a private companies selling price.
Access Business Advisors
Serving Greenville &
Upstate SC since 1992.
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Access Business Advisors
728 N Pleasantburg Dr
Greenville, SC 29607
(864) 271-9122
