Sell-side M&A specialist with access to institutional investors, strategic buyers and debt capital markets
After 20+ years of building businesses and facilitating company purchases, I'd like to work with you in the role as your sell-side M&A advisor.
Once companies breach the 8-figure turnover ceiling, private equity firms begin to take notice as do money managers within family firms. It becomes much easier as your sell-side advisor to create a competitive bidding environment for your business when I take it to market for you.
Your company will likely be bought by institutional investors, a direct competitor or a company seeking access to your customers to sell its products next to your own.
What do institutional buyers want?
Sell-side analysts, sometimes referred to as equity research analysts, use financial modeling and market knowledge to determine which businesses offer sustained potential for growth and the addition of value.
A sell-side analyst working for a private equity firm looks for a healthy balance sheet and a history of growth (if profitable, even better). They usually wish to integrate your company into a larger whole to achieve economies of scale and grow market share.
Investment banks take a similar approach. They represent much larger potential buyers. The investment banking industry uses the financial market (including hedge funds, pension funds and mutual funds) as well as their client's own cash to raise capital for the purchase of smaller, boutique companies as bolt-ons. Being an investment banker is as much about finding the right companies to marry together as it is about selling traded securities.
With both types of investment, the type of growth expected by an investment bank or private equity firm is not quite as dramatic as venture capitalists but they look for a potential investment likely to deliver them a substantial return on their shareholding within 5 years.
What do competitors want?
Competitors look for buy-side deals that strengthen their own market share.
The best investment opportunities for competitors provide access to your client database and the revenues they generate. A potential buyer wants to integrate the unique selling points of their value proposition with their own.
There are often streamlining opportunities too. Previously your company and theirs were two companies with their own sales, customer service and technical teams. By bringing them under the umbrella of one company, they achieve significant cost savings, higher profit margins and a greater market share. Just the type of deal a buy-side analyst looks for.
Why would companies outside my sector want to be potential acquirers?
Both buy-side and sell-side analysts look for hidden opportunities. While there may not be a direct correlation between large portions of your products and your target audience, there may be enough to create initially cross-selling opportunities. Depending on market share, there may be a significant benefit in using your brand name.
Other businesses wanting to merge with yours may also see an opportunity to integrate your products into their portfolio. As more businesses move across to subscription models, for example, competition to maintain a lead when measured by ease-of-use and functionality becomes intense.
How do you turn my business into a business investment bankers consider?
Most clients who come to me for the first time are interested more in selling their businesses rather than mergers and acquisitions. They feel that they have given enough of themselves over financially and emotionally and now they want an exit.
I can help you with that...but I'd rather you hear me out first on another idea.
If your business turns over 6 or 7 figures, investment banking firms and private equity firms will probably not be interested. A big part of this is bonus-related. It takes just as long and costs just as much in many cases to go from the initial engagement letter to data room set-up to the due diligence process right through to completion on an 8- or 9-figure as it does on a 6- or 7-figure deal.
In other words, buyers will find it far easier to raise money to purchase your business when it's bigger than smaller.
Do you feel like you're stuck at 6/7 figures and can't see how to get higher? Here's how to do it.
There is a large but not very well-known pool of capital available for smaller businesses to take over other businesses. I wrote about my experiences in this market recently for Acquisition Aficionado magazine.
I understand that this may be exactly the opposite to you want but you need to hear this side of the argument.
Many of the clients I work with feel that they have reached the limit of their ability to grow their businesses. When they say this they're referring to organic growth. Organic growth is much hard than growth through acquisition.
I'll train you and your management team over 3-5 years to grow your business to 8 figure turnover with higher profit margins by identifying and acquiring companies that add to your company's overall value.
I'll be your buy-side advisor first and then your sell-side advisor when the time is right. No other advisory firms offer this level of service over such an extended time.
I'll find the people who fund your growth and the people who buy you out. To find out more, fill in the form below.