• During an M&A process, it is extremely important to generate interest
from multiple parties in order to induce competition among buyers. Too
often sellers go down the M&A path with only one buyer, which a)
eliminates competition that could increase the value of the business and
b) exposes the seller to significant risk if the buyer does not have the
financial wherewithal to complete the transaction.

• Running a complete M&A process, soliciting a large, yet targeted
universe of potential acquirors, and hand picking the best candidates is
the only way to achieve maximum value for your business.

• Timing is an important function of the process that keeps buyers not only
interested, but excited to do a deal. A professional advisor can set an
M&A timetable that allows the maximum competition among buyers while
at the same time maintaining the impetus to close the deal.

• When undergoing a formal M&A process, it is important to execute a
structured process that targets a wide audience of potential buyers and
fosters a competitive bidding environment. Set forth below is a typical
timeline of a professionally structured M&A process:

• Many large premium buyers are public companies with stock that trades
at a multiple to earnings. Earnings that are “acquired” in a transaction
immediately create value at a multiple of such earnings. For example, if
the stock of a buyer is trading at 15 times price to earnings (P/E) and the
buyer acquires a company with $1 million in earnings, the transaction has
generated $15 million of value to the buyer.

• We have experience in running successful M&A processes that generate
interest and a competitive bidding environment in order to ensure our
clients realize maximum value for their company.