Mergers & Acquisitions
What Qualifies A Business To Be An M&A Transaction?
There are several situations that could make your company qualify for your company to be considered an M&A Transaction:
- Your company has earnings greater than one million dollars. When businesses grow to this size, they become targets for acquisition by industry players.
- Your business is too large for an individual buyer to purchase or finance through conventional methods. Once your company is worth multi millions, a single individual usually will not purchase it (most multimillionaires do not wish to work).
- Your company is in an industry that is currently being “rolled up”. In some industries, strategic buyers that want to consolidate the marketplace will purchase even small businesses.
- Your business is experiencing incredible growth. If your company is running out of capital because of growth, it may be a merger and acquisition target.
- You want to grow your company and perhaps retain some equity. If that is the case, you will need M&A expertise.
Review Your Options
Create a Strategic Plan
Review Your Options
There are many options that you must consider. Transworld can help you understand them all.
Important issues include:
- Is it time to sell?
- Who are the buyers?
- Strategic or financial?
- Can I raise capital?
- Can or should I go public?
- Will I have to stay on and how long?
- What are Transworld’s fees?
- Are their any upfront fees? (Most probably NO!)
Valuation
Create a Strategic Plan
Review Your Options
Transworld can help you understand how much the company worth!
Important issues include:
- Should I pay for a valuation? How much? (Not 50k!)
- What multiples apply to my business?
- What methods or rules of thumb are used in our industry?
- Do assets matter?
- Do you apply gross sales?
- What are the tax implications?t.
Create a Strategic Plan
Create a Strategic Plan
Network And Market The Sale
Those who fail to plan, plan to fail. Transworld merger and acquisitions will set up a plan of action to take your business to market.
Important issues include:
- Which buyers do we approach first?
- How do we get the best price?
- How do we create completion for the deal?
- How do we keep it CONFIDENTIAL!
- How do we prepare the right marketing package? (Deal book!)
Network And Market The Sale
Solicit And Review Letters Of Intent (LOI's)
Network And Market The Sale
Transworld is one of the largest and most successful business sale organizations in the country! We work our merger and acquisitions differently!
Important issues include:
- The multifaceted approach. First strategic buyers, then financial, then open market.
- Create competition for the deal! To get you the best price!
- Qualify buyers.
- Review their qualifications.
Meet With Prospective Buyers
Solicit And Review Letters Of Intent (LOI's)
Solicit And Review Letters Of Intent (LOI's)
Transworld will attend most meetings with buyers and be present on conference calls. We will prepare beforehand. We will also have a post meeting to go over how the meeting progressed.
Important issues include:
- Meet with only the best buyers.
- How to handle conference calls.
- How to handle face-to-face meetings.
- Limited but important information.
Solicit And Review Letters Of Intent (LOI's)
Solicit And Review Letters Of Intent (LOI's)
Solicit And Review Letters Of Intent (LOI's)
Transworld will work with you and your advisors to decide who is the best buyer, and which one will eventually close!
Important issues include:
- Who’s the best buyer?
- Cash, notes, earnouts, stock, escrow?
- Senior debt, mezzanine, secondary?
- No shops and non-solicitation agreements?