Mergers & Acquisitions

Mergers & Acquisition investors generally fall into one of three categories:

• Corporate Buyers

• Private Equity Firms

• High Net Worth Individuals

All three groups of investors have raised or possess the necessary funds for the sole purpose of investing in privately-held businesses such as yours. Additionally, their resources allow them access to high-power borrowing options, often unavailable to the general public. These options will enable them to acquire “platform” companies that fit their investment strategies. These companies can either be add-on acquisitions for their portfolio or independent companies that complement their long-term investment goals.  Each acquisition is uniquely structured to fulfill the requirements of the individual participants. An investor may choose to purchase 100% of the company’s assets or stock, a leveraged buy-out, or in many cases, allow the seller to keep a percentage of the stock and remain in a top management position for an agreed-upon timeframe. This last scenario provides for a pre-determined seller exit strategy, enables the seller to receive a large upfront percentage of cash from the business’s sale while taking advantage of the future growth potential the new investor provides, and ensures both a smooth and profitable transition!  Multitudes of motivating factors are evaluated when an investor contemplates an acquisition. Reviewing an acquisition’s historical performance, future earnings potential, the opportunity to capture a more significant market share, the synergy that this new acquisition may provide, and the ability to provide a healthy return on investment are essential factors considered in detailed business analysis.