Mergers and Acquisitions
VentureVest Capital Corporation, through it's
officers, advisors and affiliates have many years of experience in mergers and
acquisitions, roll-ups, and corporate financing. Over the years, this team has
been involved in well over half billion dollars in transactions.
The main objective is to achieve each client's
long-term strategic goals, whether the goal is business or personal. To sell or
merge a business or to acquire another company or companies for growth, the
objective is to seek out the best possible acquisition under the circumstances,
make the necessary contacts, effect the due diligence needed and structure the
maximum value.
In today's complicated regulatory environment,
this aim must be carefully balanced with complex tax issues and potential legal
liabilities. The VentureVest team carefully evaluates each client's business and
personal needs and advises each client on all details of a sale or purchase
decision.
SELLING A BUSINESS
Selling a business is a complicated process
involving numerous difficult decisions. For most business owners this is a
once-in-a-lifetime event and usually involves their largest personal asset. A
successful conclusion requires accurate information and demands objective
thinking. There are many questions to be addressed .
- Is the company ready for sale?
- When is it the best time to sell?
- What is the actual net worth?
- Can value be increased?
- Who are the best possible buyers and how
can they be found?
- What tax consequences and government
reporting requirements might effect the sale?
- How can legal liability be avoided?
The ideal process is to maximize value by
strategic marketing, maintaining confidentiality and minimizing disruption to
business. Also, to ensure full disclosure and add valuable documentation, if it
is necessary, to define the terms of the sale long after its completion. There
are seven important steps in selling a business.
Step 1. To Identify the Seller's Objectives
Develop a clear understanding of the seller's
requirements and strategic goals including the desired "need value",
timing, tax consequences and interest in future involvement.
Step 2. Analyze and Evaluate the Company
Identify synergistic, strategic, industrial or
financial buyers in order to achieve a transaction that may exceed the fair
market value for a firm. It is essential to make an accurate determination of
the company's value to ensure proper compensation. Often, privately held
companies suppress earnings to reduce tax liabilities. For this reason, it is
important to dissect the financial history of the business line by line to
uncover the hidden value of the Company in order to achieve the highest value.
This extensive evaluation process involves state-of-the-art methods in obtaining
an accurate consensus of the true value of the business. The analysis will
identify and illustrate the firm's future income potential, which is critical to
obtaining maximum value, minimizing the possibility that the Company will be
sold only on the basis of their historical earnings.
Step 3. Determine the Right Time To Sell
Obviously, the best time to sell a business is
when the market is paying top dollar and when the company has reached an optimum
rate of growth. Many factors must be taken into consideration to determine
whether or not it is the best time to bring the company to market. It may be
that the value of the business at the moment will not meet the needs of the
seller and a decision must be made whether to sell or hold. VentureVest will
assist in making such decisions but will work with each client in future years
to assist in achieving the goals desired.
Step 4. Create a Confidential Business Report
(CBR)
VentureVest Capital Corporation will work with
each client to develop a comprehensive report to communicate the business
opportunity to prospects in its best light. This report provides an in-depth
review of the company's strengths, weaknesses, threats and opportunities. This
report allows VentureVest to communicate effectively with buyers around the
world.
Step 5. Develop a Strategic Marketing Plan
The VentureVest team will develop a customized
and targeted marketing strategy to identify potential buyers, and to match the
business with a select list of the most qualified buyers. The database of
VentureVest and its associates includes detailed acquisition criteria for
thousands of potential buyers. Local, national and international advertising
strategies are put in place to present the company to the appropriate audience.
Step 6. Implement of the Marketing Plan
The marketing plan is implemented, and through
this effort potential buyers are identified. Prequalified and motivated buyers
are then approached with a Confidential Seller Profile that describes the
company without disclosing information that allows the prospective client to
identify the company. Prospects expressing interest must meet financial
qualifications and execute a Confidentiality Agreement. After approval of the
prospect, the confidential Business Report is forwarded to the buyer and all
exchanges of information is strictly controlled to protect client
confidentiality.
VentureVest will coordinate all leads
client-approved conferences, site visits and negotiation sessions to obtain
optimal purchase proposals, continuing until a satisfactory agreement of value
and deal structure is reached. The goal of VentureVest is to create a
competitive bidding environment for the company, enabling the seller to obtain
maximum value.
Step 7. Close the Deal
VentureVest works in partnership with the
client's legal and accounting team to orchestrate a definitive purchase
agreement that finalizes all details of the transaction, including the
coordinating of negotiations, letters of intent, due diligence and financing
options. VentureVest can also assist in the procurement of financing.
ACQUIRING A BUSINESS
Similar steps are taken when VentureVest
contracts with a client in seeking businesses to acquire for growth and/or other
reasons.
Step 1. Identify the Client's Objectives
Determine the client's goals and objectives.
Determine perceived purpose for an acquisition. Whether it is for growth or to
acquire certain technology and/or resources.
Step 2. Identify Possible Acquisition
Candidates.
Researching our database and knowledge of certain
markets, possible companies that fit the needs of the client are located.
Efforts are made to determine the level of interest in being acquired while
maintaining the confidentiality of the client.
Step 3. Due Diligence on the Prospective
Acquisition Candidate.
If an interest is expressed, the necessary
information is obtained on the company and a Confidently Agreement is signed.
This information would include all important aspects of the company, including
corporate structure and ownership, financial information, marketing and sales
information and all other pertinent data.
Step 4. Create the Confidential Business
Report
Preparing a Confidential Business Report for the
client on the proposed acquisition candidate and the resulting company after the
acquisition.
Step 5. Close the Deal
VentureVest, in conjunction with the clients and
the acquisition candidate's legal counsel, and accountants, work to structure
and close the deal.
Our merger and acquisition advisors and
associates are highly trained in the intricacies of the business sale and are
seasoned to handle the unexpected challenges of such transactions. Many of these
individuals are former entrepreneurs that have built successful businesses, or
past members of senior management with a unique understanding of the concerns of
the business owner.
