Mergers And Acquisitions
We Specialize in Mergers and Acquisitions – Experienced Professionals and More
What Qualifies A Business To Be An M and A Transaction?
Is your company generating earnings higher than a million dollars? Businesses this massive become prime opportunities for acquisition by industry leaders.
Sometimes traditional methods will not work out well for an individual buyers because of their massive company growth. Single individuals do not buy multimillion dollar companies, and most multimillionaires do not wish to work anyway.
Some industries are undergoing what we call “roll up.” Rolled up means strategic buyers want to consolidate the marketplace by purchasing businesses, even smaller ones.
Growth is usually a good sign the company is heading in the right direction. However, there will be times where the business runs out of capital quickly, turning it into a good M&A target for investors.
How Are M and As Sold?
Understanding Your Goals
Review Your Options
Create A Strategic Plan
Network And Market The Sale
Meet With Prospective Buyers
Solicit And Review Letters Of Intent (LOI’s)
- Who’s the best buyer?
- Cash, notes, earnouts, stock, escrow?
- Senior debt, mezzanine, secondary?
- No shops and non-solicitation agreements?
Negotiate The Sale
- Negotiation never ends.
- What should be in the LOI?
- When should the definitive agreements be drawn?
- How long for due diligence?
- Who pays the attorneys or CPAs?
- Is an audit necessary?
- What information is necessary?
- Where is due diligence done?
- What to do when the buyer asks you to cut out the intermediary, your attorney, or CPA?
- How not to get a “haircut” as the deal progresses!
Close The Deal
- Review and negotiate definitive agreements.
- Follow up with financing sources.
- Arrange real estate sales or lease transfers.
- Notify critical employees at the appropriate time.
- Help arrange wire transfers.
- Make reservations for the celebratory dinner! (Perhaps even pick up the tab!)