In the Mergers & Acquisitions arena, we focus on companies with revenues ranging from $5 million to $200 million with earnings of $500,000 and above.Mergers & Acquisition investors generally fall into one of three categories:
- Corporate Buyers
- Private Equity Firms
- High Net Worth Individuals
All three groups of investors have raised or possess the necessary funds for the sole purpose of investing in privately held businesses such as yours. Additionally, their resources allow them access to high power borrowing options, often unavailable to the general public. These options afford them the opportunity to acquire "platform" companies that fit their investment strategies. These companies can either be add-on acquisitions for their portfolio or independent companies that compliment their long term investment goals.
Each acquisition is uniquely structured to fulfill the requirements of the individual participants. An investor may choose to purchase 100% of the company's assets or stock, a leverage buy-out, or in many cases, allow the seller to keep a percentage of the stock and remain in a top management position for an agreed upon timeframe. This last scenario allows for a pre-determined seller exit strategy, enables the seller to receive a large up front percentage of cash from the sale of the business while taking advantage of the future growth potential the new investor provides, and ensures both a smooth and profitable transition!
Multitudes of motivating factors are evaluated when an investor contemplates an acquisition. In addition to reviewing an acquisition's historical portrait, future earnings potential, opportunity to capture greater market share, synergy this new acquisition may provide to entities already under its corporate umbrella and ability to provide a healthy return on investment are a smattering of the many factors considered in a detailed business analysis. Return On Investment (ROI) may be judged by different extenuating factors i.e.:
- Cost of funds to purchase the business
- Degree of risk involved in the transaction
- Need the acquisition will fill
- Future expectations of profit
- How a particular business measures up to other companies in its industry
What American Business Brokers Can Do For You
American Business Brokers maintains a database of over 5,100 national and international equity groups. This population is complimented by the many corporate buyers who maintain constant contact with our M & A Division.
ABB's team provides over forty years of training and experience necessary to prepare your business for acquisition and a seamless sales transaction. ABB's senior staff of M&A professionals are well schooled in the art of confidentiality, preparing offering memorandums and all of the transactions, necessary processes and protocols to complete the transaction.
Allow our strategic alliance of professionals, which include CPAs, tax experts, transaction attorneys, and financial planners, to assist in every aspect of the transaction. This includes, but is not limited to, structuring your business to command the highest market resale, creating offering memorandums sought by acquisition experts, and top financial planners structuring the sale to incur the least amount of tax liability possible!
American Business Broker's team of Merger and Acquisition specialists can be reached at 866-224-8386 or via e-mail at firstname.lastname@example.org.