M&A Advisory Services: For Business Owners

Overview

Our M&A services for business owners are multi-faceted and support the potential sale of a business from the idea stage to the transaction’s closing. We represent a confidential, low risk option as our fees are paid by the buyer and only on a completed transaction. The steps include:

Exploration: Cook Associates M&A Advisory Services helps define the timeline, investigates reasons for looking at a transaction, and assists with conducting the cost/benefit analysis for doing a transaction.
Optimal Transaction Definition: Cook Associates M&A Advisory Services is adept at identifying the best transactional approach whether it is a sale to management, divestiture to a strategic partner, a minority or majority recapitalization of the company that will allow ownership & management to maintain an ownership interest, family transition recapitalization, or a growth equity investment.
Identify and Qualify: Cook Associates M&A Advisory Services has an extensive track record of identifying and qualifying the most likely buyers through past contacts and an extensive network of PE investors who have past or current investments in your industry or have expressed a strong desire to invest and have specific knowledge about the sector.
Process: Cook Associates M&A Advisory Services implements a targeted, confidential, discreet and non-auctioned buyer identification process without disrupting business operation that includes having buyer groups execute non-disclosure agreements and enabling the business owner to speak with a small group of buyers (3-5) whose investment criteria match well with the owner (size of fund, past history in related space, type of preferred transaction, etc.).
Financial Analysis: Cook Associates M&A Advisory Services focuses on the last three years of P&L statements & balance sheets as well as future forecasts for growth, and looks to market comparables of recent transactions involving similar sized companies to determine reasonable valuation expectations.
Customization: Cook Associates M&A Advisory Services has the experience and ability to understand industry multiples and structure on a transaction with respect to the goals of your company’s management and ownership.

Types of Transactions

As one of the country’s top M&A intermediaries, we can assist your company in determining the best-match private equity partner based on your specific needs. In the past four years, we have closed more than 60 M&A transactions ranging in size from $50 million to $800 million. All of our fees are paid by the buyer or investor.

Our clients have fit the following transaction profiles:

Recapitalizations: An ideal alternative for business owners who want to sell a portion of their company for liquidity purposes. The owner(s) can reorganize the capital structure (debt and equity) of the business, retain some equity (typically 10-40%), take on a capital partner to eliminate downside risk, share in the upside, and more aggressively invest in organic growth and acquisitions.

Family Transitions/Management Succession: The business owner(s), perhaps a father/mother, founder, etc. want to retire and monetize their investment in the business, while the next generation or management team wants to remain and continue to build the company. Under these circumstances, a private equity group can provide a cash payout to the owners seeking full liquidity, while backing those who wish to remain in place. Active management can retain operating control and a significant equity interest while gaining a capital partner to invest in aggressive organic growth and acquisitions.

Management Buyout: Existing management can partner with a private equity firm to acquire the business they are currently operating. The sellers / parent company typically receive all cash, while existing management can invest alongside their equity partner for a significant equity piece. Collectively, the management team and equity group will embark on an aggressive growth strategy focused on both organic growth and acquisitions.

Growth Capital Investments: When a business owner wants to bring in a capital partner either for 100% growth capital (i.e., capital remains in the company) or partial liquidity funds go to the owner) but retain a majority equity interest, private equity firms can be brought in to fund the transaction.

Our reputation is built on our ability to consistently deliver results and in actively listening with your best interests in mind.