Know what it takes to qualify for the transactions and how the process works Because we are in a relatively active period for mergers and acquisitions, many business owners wonder if they qualify for consideration by firms pursing those transactions. Research recently completed by KPMG showed that 84% of firms they surveyed planned on completing at least one M&A transaction in 2017, with 75% expecting to do more than one M&A transaction. About 78% of those surveyed said they expect to do deals with companies worth $500 million or less in industries such as technology, oil and gas, pharmaceutical and biotechnology, healthcare, media and telecommunications, and financial services. At Transworld, we have a mergers and acquisitions department comprised of a team of professionals who specialize in these transactions, and we serve clients involved in M&A on a regular basis. There are several scenarios in which your company could qualify for our M&A department:
- Your company has earnings greater than one million dollars. When businesses grow 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 company is worth multi millions, a single individual usually will not purchase it (most multimillionaires are really not looking to work).
- Your company 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 your company is running out of capital because of growth, it may be a merger and acquisition target.
- You want to grow your company and perhaps retain some equity. If that is the case, you will need M&A expertise.
- 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're tired and want to do something else with your life.
- 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 for how long?
- What are Transworld's fees?
- Are there any upfront fees?
- 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?
- How do we prepare the right marketing package?