In general you will not find Middle Market Mergers & Acquisitions deals advertised online or even on our website as these transactions are usually highly targeted and confidential in nature. When it comes to Middle Market business M&A, strategic buyers will often pay more. That’s why we have developed a process to uncover the suitor with the strongest synergies and therefore the ability to offer our client the best price and terms. In fact, we’ve completed hundreds of transactions since we started in 1997. Here’s how we do it!
Types of Potential Buyers
Each type of buyer has advantages and disadvantages. ROI Corp can help you best understand what options could be available for your firm.
Synergistic or strategic buyers
Often these buyers will compete for your company and offer the most in value. With this arrangement you may also have the option to sell only a majority stake in the business, securitizing your future and remaining on as CEO for a second, and potentially larger, sale of the remaining portion later!
How We Do IT
The Controlled Informal Auction is a tried and true approach to M&A that will deliver the best buyer for your business. The time frame is generally 3 to 9 months depending on the number of buyers and how quickly they begin to come forward. Here’s how the process works:
Improve Your Business Now, and Sell for More at a Later Date
If you have 1-5 years before you may want to sell your business, you have time to increase your future pay-out. ROI Corp’s Value Maker Program is a proprietary process that benchmarks the value of your business now and identifies the 5-15 key points that you can focus on with your CPA or business advisor so that when you’re ready to sell, your business is worth much more to potential buyers than it is today.
Sell a portion of your company now, and the rest later
A tried and true exit strategy is selling a portion of your company (usually a 70-80% share but sometimes less) to an investment group with deep pockets. The owner, you,can stay-on as CEO with two advantages; you secure your future with a substantial liquidity event when the first sale occurs; and you get to grow the business with a strong board of advisors and more capital. Then, after a predetermined period (typically 5 years or so), the potentially much larger company can be resold and you cash in the 20-30% ownership you retained. This second bite of the apple can sometimes be more than the first sale in proceeds for the former owner. We would be happy to discuss this and other options with you at a confidential meeting.
To discuss whether your business is a good fit for the Controlled Informal Auction process, please contact us at 781-682-6209, by email or by using the Request Information form to the right and one of our partners will contact you.
Sell to your family member or a key employee
The majority of businesses in the US sell to family members or key employees. M&A advisors are generally thought of when a buyer must be found – and of course, in this case, that’s not necessary. However, ROI Corp can still provide tremendous value in the sale process. After all, this is very likely your first sale and your buyer’s first purchase. By contrast, we’ve helped hundreds of business transition since our founding in 1997. Most of the effort in buying a business occurs between the agreement to buy and the closing date. We can provide a business valuation so that everyone involved feels the price paid is fair. We help the buyer understand the financing options available including SBA and other loans. We guide you all through the process, offer mediation help when needed and make suggestions for how to meet the non-financial needs of both buyer and seller, such as seller employment agreements and other important transition issues. We can help you avoid pitfalls and keep the process moving, provide paperwork, legal and other professional referrals, and celebrate with you in the end.
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