Acquisition Target Analysis Service
For those that want Jason and part of his team to analyze their deal before they close
This is a specialized service for entrepreneurs, corporations, private equity firms, etc. with a specific deal in the $1 to $50M range. To restate, this only for you and/or your company if you have a deal that you’re serious about and is under some stage of due-diligence.
Jason’s M&A deal team has knowledge and experience in:
- small cap investments,
- capital raising,
- financial modeling,
- transaction structure,
- capital structure,
- management plans & compensation after the acquisition,
- strategy for organic growth after the acquisition, and
- many other aspects of business and M&A
Jason’s team will analyze your deal independently from your team or advisors, or yourself, to give you an unbiased opinion and report.
Here are the general steps we go through with each client:
- We will sign an M&A Advisory Agreement.
- We will sign a Non-Circumvention Agreement and Non-Disclosure Agreement so it would be illegal for us to pursue your acquisition target personally or with our affiliated companies. This legally ensures that we are only here to help you and that we won’t use any information you disclose to us against you. In the private equity/M&A industry, we frequently see individuals being too liberal with confidential information before proper legal agreements are signed to protect the discloser. We won’t be legally sloppy, and we expect the same from our clients.
- We will require you send us all financial documents, reports, public filings, internal data, financial data, audits, etc.
- We will talk briefly over the phone for 30 minutes to an hour without discussing the price or anything to do with the valuation of the company. During this call, we want to hear your plans for future management. We will also want to hear what the current owner of the company has told you about management and the future of the company. This is all a part of the company’s fair valuation. This call is designed to be brief because we want to come to our own conclusion of what we think of the company.
- We will analyze the deal without having heard the targeted price or anything to do with the valuation of the company.
- Why? Maybe you’ve heard Warren Buffett say that he likes to look at a company’s financial data without knowing the price or valuation of the company. He does this because he doesn’t want the price that someone else has placed on the company to influence what he thinks the company is worth. Usually that someone else is a broker/investment banker or seller that has a financial incentive to raise the purchase price. Thus, why would you let a seller or a broker tell you what the company is worth? It is very simple: If Buffett’s independent valuation of the company is much higher than the valuation the broker, seller, or the market has placed on the company, he buys it.
- We want to do the same thing for you. Obviously, we are not Warren Buffett, but we like to follow his process of valuation to help our clients.
- After you send us all the information, we will take some time to analyze the company and its prospects for growth (or decline).
- We may look at other companies in the industry to see how it stacks up against competitors.
- We will estimate the price of the company. In other words, we will inform you what we would pay for the company or what we think it is worth to you and why we think that which is important when making an offer and during negotiations.
- We will do a financial projection model with a best case, worst case, and most-likely case scenario. We will assume financing is going to be available.
- We will provide you with a capital and transaction structure that we think will work best for you in raising finance and for the long-term success of the company after closing.
- ex., our thoughts on the best way to finance each component of the capital stack and why (seller finance, commercial debt, SBA debt, investor equity, etc.)
- ex., our thoughts on how to incentivize management going forward, and if we think management should be a part of the transaction (receive equity, profit share).
- and other remarks regarding the transaction/capital structure and how to make sure the company is a success going forward.
- We may give you our analysis of the industry, where we think it is going, and of course, we will work that into the transaction price we propose you offer to the seller.
- Lastly, we will send you all of our reports and analysis as soon as possible for you to review.
- After you and your team have had time to review our reports and analysis, we will discuss over a conference call for 1 – 2 hours.
- You will tell us the price and any capital structures the seller and/or broker/investment banker has proposed. We will discuss the seller’s offer versus what we think the company is worth.
- We will answer any questions you have and talk about how we came to the conclusions we did.
- We will talk about plans for organic growth, management, negotiation, and financing the transaction.
End of service
If you would like to keep us on a retainer or want more help raising finance, we can discuss further pricing after the service is complete.
Jason’s time is limited, and he is virtually always working on his own transactions and companies. You’ll need to schedule a call below with Jason’s trusted associate for us to determine if you are a good fit for this service.