[vc_row full_width=”stretch_row” css=”.vc_custom_1493215422445{background-color: #777777 !important;}”][vc_column][vc_custom_heading icon_size=”67″ text=”Mergers & Acquisitions Sell-side,
some of the potential improvements…” font_container=”tag:h4|font_size:45px|text_align:left|line_height:45px” google_fonts=”font_family:Poppins%3A300%2Cregular%2C500%2C600%2C700|font_style:700%20bold%3A700%3Anormal”][vc_row_inner][vc_column_inner width=”1/3″][stm_stats_counter counter_value=”83″ counter_value_suf=”%” title=”of M&A deals did not boost shareholder returns (KPMG)”][/vc_column_inner][vc_column_inner width=”1/3″][stm_stats_counter counter_value=”20″ counter_value_suf=”%” title=”of finance executive involved in a M&A said their transaction were very successful (Canadian Financial Executives Research Foundation)”][/vc_column_inner][vc_column_inner width=”1/3″][stm_stats_counter counter_value=”75″ counter_value_suf=”%” title=”of new businesses do not survive past 5 years (CBS MoneyWatch)”][/vc_column_inner][/vc_row_inner][vc_empty_space height=”24px”][/vc_column][/vc_row][vc_row full_width=”stretch_row” el_class=”third_bg_color” css=”.vc_custom_1493215450316{margin-bottom: 48px !important;}”][vc_column][vc_cta h2=”Looking for a M&A?” h2_font_container=”font_size:20px|color:%23000000|line_height:24px” h2_use_theme_fonts=”yes” shape=”square” style=”flat” add_button=”right” btn_title=”request a visit” btn_style=”flat” btn_color=”theme_style_2″ btn_align=”right” btn_i_align=”right” btn_i_icon_fontawesome=”fa fa-chevron-right” use_custom_fonts_h2=”true” btn_button_block=”true” btn_add_icon=”true” el_class=”third_bg_color” css=”.vc_custom_1498241382390{margin-bottom: 0px !important;}” btn_link=”url:http%3A%2F%2Fc2024.strategok.com%2Fcontact%2F||target:%20_blank”][/vc_cta][/vc_column][/vc_row][vc_row css=”.vc_custom_1452687555475{margin-bottom: 100px !important;}”][vc_column offset=”vc_col-lg-9 vc_col-md-9″][vc_column_text]
Large companies have the option of going public to seek growth capital and get liquidity to their entrepreneurial efforts. However, access to public market capital and liquidity is not an option for midsize companies. In other occasions, an organization in a turnaround process could need the disposal of a company/business that must be sold. Strategok shapes the exit and cash plans of middle market owners. We analyze where you are in the business cycle and in your lifecycle, and we proactively guide you to prepare for a transition, make the needed strategic decisions, and operate the company effectively to achieve your desired objectives.
In order to sell the business, it is needed to prepare the business to maximize the value, make the marketing material, find a group of potential buyers to raise price competition, and perform negotiations while you continue to focus on the day to day aspects of running the business. Strategok ensures that you will not “leave money on the table” providing you with one of the less obvious roles that M&A advisors play, the operational consultant who is mainly specialized on the critical pre and post selling transaction activities. Moreover, we perform the specific selling transaction with the support of our partnership with an investment bank specialized in the pure selling transaction what is adding credibility to your assertions of value and strengthen your negotiating leverage.
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Business value depends on the company size, the buyer type, the risk profile of the firm and the expected growth. Business valuation is an attempt to estimate the balance between risk and return in a company. Every company simultaneously has at least three market values (asset, financial, and synergy) that represents the most likely selling price based on the most likely investor type. So, Strategok performs an initial business value exercise for you to have an expectation of what would be the most likely range of buyers’ acquisition offers.
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- asset market value
- financial market value (recast EBITDA)
- synergy market value
- acquisition selling multiples
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Some firms engage very quickly on the selling process without preparing the company for sale, I mean making an improving value audit and action plan. Unfortunately, those sub-optimized businesses will likely find greatly depressed buying offers. Strategok M&A advisors have experience on corporate turnaround what makes the most suitable professionals to perform quick M&A pre-transaction consulting in order to raise your company value before selling. We offer assistance in planning for an exit or the monetization of your business. We improve your company’s operational and financial performance and hence the firm selling market value.
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- cost analysis
- growth strategy
- business plan
- family versus business matters
- due diligence preparation
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The entrepreneurial business owner used to be comfortable with risk (contract-driven business which can have its ups and down, significant customer concentration, and so on). Those risks are adding buyer uncertainty with the amount and timing of realizing expected returns. The result is that larger companies views investments specially in the lower-middle market as riskier, and therefore needs to pay less to balance risk and return. Strategok works with you to implement an enterprise risk management plan to manage the risk of the entire enterprise to avoid important discount rates in the firm value.
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- ISO 31000
- financial risk
- strategic risk
- intangible risk
- physical risk
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Once that the pre-transaction stage has been finished, the company is really ready to be sold. The first step is the data collection to prepare the marketing book with all the relevant financial and no financial information to allow the potential buyers to make an offer. Strategok has a partnership with a global investment bank specialized on M&A, and this independent party can add credibility to your assertions of value and strengthen your negotiating leverage.
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- marketing book
- contact with buyers
- negotiating price and terms
- structuring the transaction
- receiving and negotiating LOI
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After the accepted offer and signing the Letter Of Intent, the buyer will perform in-depth investigations to confirm the assumptions showed in the marketing book and analyze the risks of the transaction. Thus, during the due diligence stage the buyer will attempt to reduce the value of the firm. However, Strategok will help you to preserve the value preparing the firm for the due diligence with enough anticipation, and fixing some future issues with the due diligence process.
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- financial matters
- taxes
- compensation and benefits
- legal compliance
- information technology
- supply chain
- sales & marketing
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Many M&A that are considered to be unsuccessful are generally because of poor post-sale integration. This is a big issue for the buyer, but it used to be a big issue for the seller too. A typical transaction structure consists of some combination of cash and stock, and possibly earnout in order to ensure that the seller works to make the acquisition successful. Moreover, we understand the importance to many entrepreneurs and owners of leaving a sustainable legacy. Thus, the Strategok M&A advisor job does not finish after signing the definitive M&A agreement. We continue working with you to make sure that the integration is successfully finished, and you will receive the highest value according to the earnout agreement.
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- integration due-diligence
- integration plan and “first 100 days” plan
- managing the soft issues
- measuring integration success
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