A threshold question for business owners who want to sell their company or grow it by acquiring others is whether to “do it yourself” or hire a professional. While obviously talented, owners may not have the time, knowledge or network to efficiently identify and evaluate suitable buyers or growth partners. Their core competencies lie elsewhere.
Before owners hire a traditional dealmaker – an investment banker, M&A advisor, or business broker – they should understand the process. Traditional dealmaker processes can include preparation of an extensive Confidential Information Memorandum (CIM), management presentations to prospects, multiple round auctions, mass email campaigns and/or listings on business-for-sale websites. Some charge owners recurring work fees, termination fees and substantial success fees.
Howard Sheri Corporation, a Mergers & Acquisitions Intermediary founded by attorney Michael Erdman, offers business owners pursuing strategic growth or exit objectives a compelling alternative to traditional dealmakers. HSC provides owners with targeted introductions to private equity firms and strategic buyers well-suited to purchase the business or collaborate with in a growth partnership. HSC’s targeted approach is more discreet, less disruptive, less expensive and faster-moving than most dealmaker processes. For example-
- Targeted introductions reduce likelihood of company suppliers, customers, employees and competitors prematurely discovering and acting upon owners’ plans
- Targeted introductions let owners and management remain focused on running the business instead of disruptive and time-consuming CIMs, management presentations, multiple round auctions
- If initial efforts do not result in a transaction, targeted introductions reduce likelihood of other potential buyers or growth partners viewing the opportunity as a “shopped deal”
- Targeted introductions identify well-suited private equity firms and/or strategic buyers sooner, rather than at the end of a multiple round auction
- In most cases HSC offers owners the option of a competitive contingent or hybrid fee arrangement
HSC also leverages Erdman’s experience representing large and mid-sized companies in transactional and other legal matters, and his knowledge of/relationships with private equity firms and strategic buyers.
We enjoy getting to know business owners and educating them about strategic growth and exit options. Contact us to start a no-obligation conversation.