The primary emphasis in mergers and acquisitions is representing sellers on an exclusive basis. BDSA assists its clients through the numerous steps in the selling process including: determining the value of the company, preparing a confidential memorandum, selecting and contacting potential acquirors, negotiating terms and conditions, evaluating offers, and closing the transaction. Clients are located throughout the United States in a broad range of industries. Transaction values typically range from $3 million to $125 million. Buyers include publicly-held companies, investment groups, and non-U.S. firms. In every acquisition we attempt to generate interest from at least four to six potential buyers including one, and often two or three, from non-U.S. firms. The non-U. S companies normally are the highest paying group. When companies are provided with a choice of offers, price assumes a secondary role in importance behind considerations such as compatibility of philosophies or cultures of the combined groups.
Representing Buyers
We will assist acquirors in establishing acquisition criteria, identifying appropriate target companies, advising on proper price and terms, proposing alternative structures and assisting in negotiations and closing. We can also assist in securing financing through our relationships with private equity investors, mezzanine funds and asset based lenders. Our extensive databases and knowledge of the marketplace allows us to frequently uncover companies whose owners have just begun to consider a possible sale or merger. This ensures that competition from other buyers is limited.
Private Financings
We arrange private placements of both equity and debt securities. We assist our clients through each step of the process including: preparing the offering memorandum, determining pricing, selecting potential investors to contact from the firm's relationships, proprietary databases and other sources, presenting to interested investors, evaluating investment proposals, negotiating terms and conditions, and closing the transaction. Proper pricing is important in demonstrating to the investors that management has a firm understanding of the marketplace and is serious about the financings.
In all of the types of services, the final offer accepted may not be the one at the highest price level but with a buyer or investor that the client believes will be the better match.