Price Inefficiency

The middle market for private companies
is very price inefficient +/- 25%

Maximize Price & Optimize Terms

In addition to maximizing sales price with multiple offers, by way aggressively marketing your business, we seek to optimize the terms of your transaction including:

Amount and timing of payments
Allocation of business risks going forwards
Transition role and duration for the seller
Increasing positive and decreasing adverse effects on the workforce

Strategic Buyer

Typical transaction is a strategic acquisition or divestiture
1 transaction Buy and then integrate
Synergy creates value including cost reduction and revenue growth
Returns - strategic and financial from integration and ongoing operations
Valuation - Discounted Cash Flow (DCF) plus synergies

Financial Buyer

Typical transaction is a leveraged investment with current management
2 transactions Buy and then sell
Revenue growth and debt reduction are value creators
Returns - financial only, requires a future liquidity event (e.g. sale, IPO)
Valuation - Discounted Cash Flow (DCF)

Sale Process Overview

Sale Preparation

We work with company management to:

Gather data
Build financial models
Build presentation materials
Develop pools of likely and not-so-likely buyers
Develop marketing strategy
Initiate pre-marketing activities

Marketing your Company

We create a market for your private equity:

Buyer outreach
Negotiate confidentiality terms and conditions
Manage introductory meetings
Create competition for buyer proposals

Buyer Selection & Negotiation

We help management to:

Narrow buyer proposals to the best options
Facilitate due diligence
Manage presentations
Negotiate Letters of Intent
Select ultimate buyer

Closing

We support management through:

Final due diligence
Negotiations on final deals points
Successful closing

Driving Premium Value

Create a unique and compelling story for every client

Potential buyers or investors list is pre-approved by management

Follow a disciplined approach with specific deliverables for each stage

Cast a wide and discreet net for all likely buyers or investors

Strategically prioritize which buyers or investors to approach early vs. later

Rehearse and continuously improve the presentation

Plan engaging management meetings with buyers or investors

Keep all backup buyers and investors engaged until the transaction closes

Remain quick, discreet, and transparent throughout the entire process

Price Inefficiency