Seller Advisory Services

All the care, planning, and effort that goes into building value in a business can be compromised by a poorly planned or ill-advised sale process. In rapidly evolving markets, the nature and timing of a sale process and the proper positioning of a company is every bit as important as the underlying performance and characteristics of a seller’s business in providing an optimal outcome for shareholders.

Selecting an advisor with significant mergers and acquisitions experience is a given. An advisor also needs to have deep knowledge of the seller’s industry and superior analytical capabilities to help clients fully assess how market conditions, buyers’ strategic needs, and (seller) company-specific attributes might influence the outcome of a potential sale process.

Failure of an advisor to fully grasp the intricacies of a client’s business and properly position its strengths and competitive advantage can lead to sub-optimal results in a completed deal, or a failed process that permanently impairs shareholder value.

In helping our clients to determine how, when and if to market a business, we rely on our significant experience in middle market mergers and acquisitions, substantial industry knowledge, and - where appropriate – our custom strategic intelligence capabilities. If a decision is made to move forward with a sale process, these same resources are utilized to help our clients best position their business in the market and ensure an optimal result. We offer a multi-phase approach in our seller advisory services.

Assess Objectives, Feasibility, and Alternatives

As the first step in our seller advisory services we review a client’s objectives, historical and projected financial performance, technical capabilities and products, competitive position in markets, and opportunities to improve operations. Once intimately familiar with the client's business and shareholder objectives, we undertake the following:

  • Evaluate mergers and acquisitions market conditions and financing activity in the client’s industry and in markets related to the client’s business
  • Analyze industry trends, outlook and value drivers and our client’s relative market position and prospects
  • Profile buyer candidates to assess fit, strategic objectives and financial capacity for acquisitions. In many cases, we deploy our strategic intelligence specialists to obtain critical information that helps focus our efforts on potential buyers that are most likely to pay a premium value.

The result is a roadmap that helps us to best position our client's transaction in the market. Or, in the event that our preliminary analysis argues against a sale, we recommend strategic directions that offer superior value.

Customized Marketing Program

Once a decision is made to move forward with a sale process, we then implement a highly tailored marketing program designed to achieve maximum value and other shareholder objectives. We of course do all the customary investment banking work, such as preparing confidentiality agreements, distributing confidential information materials, communicating the timing and process we expect buyers to follow, and responding to prospective buyers' inquiries.

But we move beyond these basic functions: Our deep industry knowledge and relationships with potential acquirors, along with the insight and analysis developed during the first phase of a seller advisory assignment, allows us to:

  • Determine the optimal process (broad, targeted, or exclusive) and timing consistent with market conditions and potential buyer interest
  • Develop buyer-specific marketing materials that position our client’s unique strengths and competencies given the industry trends and strategic motivations of buyer candidates
  • Initiate customized approaches to targeted buyers according to our knowledge of buyer-specific potential synergies, strategic needs and other factors that may impact value
  • Stimulate the interest of individual buyers that maximizes the competitive environment and our client’s alternatives.

Successful Completion

Our disciplined thoughtful and analytical approach to the sell-side process means that our clients enter the final phase of a transaction with attractive alternatives and an ability to move quickly to close a transaction with a highly qualified buyer. To ensure an optimal outcome for our clients, we take a hands-on role in transaction execution, including:

  • Assisting with preparing and presenting proper follow-on evaluation information for interested buyers including management presentations and formal due diligence materials
  • Evaluating potential buyers' transaction proposals. To qualify buyers, we typically conduct discussions to clarify buyers' interest level, terms, and ability to complete the transaction without delay
  • Assisting in structuring and negotiating the definitive terms of a transaction.
  • Assisting with monitoring the buyer’s final due diligence processes to ensure a timely closing.