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Mergers & Aquisitions

At American Business Broker Group we have a mergers and acquisitions department that has a team of professionals that specialize in larger transactions. What qualifies a business to be an M&A transaction? There are several situations that could make your business qualify for our M&A department:

We meet with you and perhaps your advisors to understand your future goals. There can be many situations that could be Important issues like:

  • 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 are tired and want to do something else with your life.
  • Your business has earnings greater than 1 million dollars. When business grows 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 business is worth multi millions, a single individual usually will not purchase it (most multimillionaires do not wish to work).
  • Your business 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 you business is running out of capital because of growth, it may be an M&A target.
  • You want to grow your business and perhaps retain some equity. If that is the case, you will need M&A expertise.

 

Whatever the issues are we need to understand them completely.

 

  • REVIEW YOUR OPTIONS
    There are many options that you must consider. American Business Broker Group 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?
  • SOLICIT AND REVIEW LETTERS OF INTENT (LOI’S)
    American Business Broker Group 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, earn outs, stock, escrow?
    • Senior debt, mezzanine, secondary?
    • No shops and non-solicitation agreements?
  • VALUATION
    ABBG can help you understand how much the company worth is & Important issues related ,include:
    • Should I pay for a valuation? How much?
    • What multiple applies 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?
  • NEGOTIATE THE SALE
    American Business Broker Group has an expert program to refine negotiating skills. Most companies in the M&A process are professional buyers, you need an expert on your side. Important points include:
    • Negotiation never ends.
    • What should be in the LOI?
    • When should the definitive agreements be drawn?
    • How long for due diligence?
    • Who pays the attorneys, CPA’s?
    • Is an audit necessary?
  • CREATE A STRATEGIC PLAN
    Those who fail to plan, plan to fail. American Business Broker Group M&A 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!
    • Preparing the right marketing package (Deal book!)
  • DUE DILIGENCE
    50% of unmanaged deals die in due diligence. American Business Broker Group will quarterback this process and keep everyone in the game. Important issues include:
    • What information is necessary?
    • Where is due diligence done?
    • What to do when the buyer asks you to cut out the intermediary, your attorney, or CPA?
  • NETWORK AND MARKET THE SALE
    We work our M&A differently! Important points 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.
  • CLOSE THE DEAL
    Once due diligence is over, then the M&A process must be completed. American Business Broker Group will work tirelessly to get the transaction closed! Important issues include:
    • Review and negotiate definitive agreements.
    • Follow up with financing sources.
    • Arrange real estate sales or lease transfers.
    • Notify key employees at the appropriate time.
    • Help arrange wire transfers.
  • MEET WITH PROSPECTIVE BUYERS
    ABBG 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.