SUCCESSFUL TRANSACTIONS
An individual, personalized and confidential approach
Depending on your objectives and your company’s specific
circumstances, several options are available when selling, including determining
the best buyer for your business. If you have a strong management team that
could take over your business, a good option for you may be a
management-buy-out (MBO), although you may have to finance an important portion
of the purchase price.
Private Equity Groups (PEGs) constitute another possibility
in this regard. They are typically well capitalized and able to pay a higher
price.
A strategic or industry buyer is a third option. This type
of buyer could be able to pay the highest price thanks to potential synergies.
Mergex will help you assess what is best
for you.
If your goal is to develop your business further while
remaining an owner rather than selling recapitalization may be
the best option. Not only does it supply the capital required for expansion
but it also provides the experience, knowhow and reach of the investor.
The
right partner provides industry operational and organizational expertise that
can increase the valuation of your business. Additional benefits include the
replacement of debt by equity and the diversification of your risk by relieving
you from personal guarantees.
When your
objective is to ensure the growth of your business without diluting your
participation or losing control, financing may be the best option.
Debt is less
expensive than equity and lets you be the only claimant of future profits. It
also releases you from the obligation of periodical reporting to investors.
However,
financing is riskier as you or your company will be held solely responsible if
plans don’t evolve as expected.
Valuation is both an art and science with quantitative and qualitative
elements affecting the result. In general, valuations can be grouped into three
categories, each of which has a number of methodologies. The first category,
the cost approach, is rarely used for ongoing businesses, as most buyers are
interested in the return on their investment. The second category, the market
approach, includes methodologies based on public or private databases
containing information, such as industry multiples or information on prior
comparable transactions. The third category is based on the return on
investment along with the discounted cash flow (DCF), which is the predominantly
used methodology.
“I wanted to thank you for all the hard work since we started this deal. You are always available to help and assist everyone. You are a great team and I am honored to work with you.”
“Thank you for your help with the sale of CCA. You went the extra mile to look after my best interests, always acting with integrity and professionalism.”
“Abu-Lafia enjoyed a multi-year relationship with Gonzalo and Luc. They played a critical role in understanding the business, finding the right partners, negotiating and closing the transaction. Without hesitation I will continue to use their services in the future.”
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"I tried to sell my business for over a year without success. Then I contacted Gonzalo and Luc. They were committed to getting the best results possible, quickly identifying a number of buyers and obtaining very favourable offers. I recommend them without hesitation."
"I was very satisfied with the services I received when selling my business. I found that the preparation of the sale and the evaluation were done professionally and accurately contributing to attract buyers and to the sale of our company."
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