M & A Advisory
Business Sale Advisory
Ameridan has completed sales of privately-held companies ranging from $3 million to over $110 million in transaction value. This success has been achieved utilizing a fastidiously confidential, targeted approach, customized to meet individual client’s objectives.
Most investment banks and business brokers use a remarkably generic process for all assignments. The process usually involves the drafting of a generic offering memorandum which is distributed to a large number of potential acquirers. At its core, the process is an auction to the highest bidder. The model works for the bankers/brokers because it is the easiest and fastest way to get a deal done. And just as importantly for them, if it doesn’t quite work out, they can quickly pivot to the next potential deal.
However, this is oftentimes not the best approach for the business owner. First, potential acquirers quickly realize that the business is being aggressively “shopped.” In some circumstances, this impression in the marketplace can seriously undermine the ability to negotiate a truly value-maximizing transaction. Second, the nature of the process almost guarantees that confidentiality will be breached, undermining both short term and longer term value. Third, these processes are run at a point in time with little effort, time, or consideration given to truly communicating the company’s unique value to each potential acquirer.
A Quiet, Focused Approach
Oftentimes, a quieter, more focused approach can achieve better results. Ameridan professionals have the transaction experience and deep market knowledge to effect a successful, value-maximizing sale without “shopping the company.” The keys to this approach are:
Understanding the value drivers in the industry and identifying a select group of potential acquirers that represent the best fit for the client company;
Professionally communicating with these selected potential acquirers in a way that allows them to truly appreciate the attractiveness and value of the company;
Carefully orchestrating the process in a way that maximizes negotiating leverage.
Ameridan’s business sale advisory services span initiation through transaction structuring and closing:
If you decide to pursue a sale of your company, you definitely will need the services of both your accountant and your attorney. However, even the best attorneys and accountants lack the industry specific M&A knowledge and networks that Ameridan brings to the table.
Just a few examples: Does your attorney /accountant know the active strategic acquirers and private equity groups in your industry? Do they know which would be the best fit? Do they know how recent M&A transactions in your industry were structured and valued? Do they know the key industry-specific drivers of value appropriate for your business? Do they have the ability to communicate your company’s unique value in a way that is meaningful to potential acquirers?
Of course not. It’s not their business. These types of questions are best addressed by having a professional on your team who focuses on these issues.
The key is to manage the process in a way that (1) has integrity and maintains confidentiality; (2) accesses key decision-makers at potential acquirers and leverages their participation in an intelligent way; and (3) maintains focus on the true objectives of the client.
In addition, seemingly small issues like the ones below can have a tremendous effect on the likelihood of a successful transaction:
- The ways in which company information is managed and presented.
- Which potential acquirers are approached and how they are approached.
- The timing and sequencing of bringing potential acquirers into the process.
- The quality of owner/management presentations to potential acquirers.
- The orchestration of site visits.
- Preparations made for due-diligence and how the due-diligence process is managed.