Know what it takes to qualify for the transactions and how the process works
Because we are in a relatively active period for mergers and acquisitions, many business owners wonder if they qualify for consideration by firms pursing those transactions.
Research recently completed by KPMG showed that 84% of firms they surveyed planned on completing at least one M&A transaction in 2017, with 75% expecting to do more than one M&A transaction. About 78% of those surveyed said they expect to do deals with companies worth $500 million or less in industries such as technology, oil and gas, pharmaceutical and biotechnology, healthcare, media and telecommunications, and financial services.
At Transworld, we have a mergers and acquisitions department comprised of a team of professionals who specialize in these transactions, and we serve clients involved in M&A on a regular basis.
There are several scenarios in which your company could qualify for our M&A department:
- 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 are really not looking 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.
To determine what is in your best interest, Transworld professionals meet with you, and perhaps your advisors, to understand your future goals. Together, we will consider the many situations that may be driving factors in your decision to participate in the M&A arena, such as:
- Your company is growing and you need capital.
- Your company is growing and you need expertise to take it to the next level.
- You would like to take some chips off the table.
- You need to retire and there are no family successors.
- There are family successors and they will need capital and/or expertise.
- You have been approached by your competition to sell your business.
- There is an industry consolidation happening.
- The marketplace is changing and you cannot or are not willing to invest to keep up.
- You’re tired and want to do something else with your life.
Whatever the issues are, Transworld works with you to understand them completely so we can advise you honestly, keeping in mind the issues you should consider:
- 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 for how long?
- What are Transworld’s fees?
- Are there any upfront fees?
Next, it’s important to obtain a valuation of your business, which includes an assessment of your company’s assets and gross sales, along with the tax implications of a sale or merger, plus a complete understanding of how buyers interested in your industry value businesses such as yours.
If a sale is right for you, we work with you to create an action plan 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?
Once we’ve got our plan, we market your business. Transworld is one of the largest and most successful business sale organizations in the country. We work our merger and acquisitions differently than other brokers, using a multifaceted approach to finding and qualifying them.
Transworld will attend most meetings with buyers and be present on conference calls, preparing ahead of these interactions and participating in post meeting assessments. We work with you and your advisors to decide who is the best buyer, how the purchase is being made, and which buyer is the most likely to close.
During the process, you have the advantage of using our negotiating skills that have been refined over years of merger and acquisition discussions. We also manage the due diligence process in your best interest through to the completion of the deal.