The
first question which comes to mind for many
people is, "What distinguishes a Mergers
and Acquisitions (M&A) practitioner
from a general business broker?" The answer,
for the most part, may be attributed to
the level of education, training
and experience of the individual.
Generally speaking, when one speaks in terms
of engaging an M&A specialist, one is often
considering the acquisition or sale of
a company possessing at least some of the
following characteristics:
Gross revenue of over $2,000,000.
Earnings before interest
& taxes (EBIT) in excess of $300,000.
Historical track-record
of significant revenues and earnings which
can stand-up to the rigors of financial "due
diligence."
An M&A specialist is
trained to understand the more complex issues
of deal making, including:
The application of appropriate
capitalization rates (multiples of earnings)
to determine Fair Market Value of an ongoing
business.
The benefit/harm of the
"allocation" of the purchase Price
between the various assets of the business.
The risk/benefits of "asset"
structured sales as opposed to stock sales.
The consequences of the
representations and warranties made by the
parties which survive the transaction.
Additionally, an M&A
specialist understands the "ebb and flow"
of the deal. He or she can guide a buyer or
seller through the tangle of documentation,
due diligence and negotiations which usually
accompany the sale or acquisition of a substantial
business.
EMPIRE Business Solutions has intermediaries
who possess the necessary criteria mentioned
above to skillfully handle a much larger or
more complex transaction.
At
EMPIRE Business Solutions, M&A training
is an ongoing process. We have developed an
enhanced training program for the Empire intermediaries.
We provide them the critical knowledge and skills
necessary to represent their clients to
the highest level of industry standards. Our
goal at Empire is to continually refine and
add to the skill set of our business intermediaries
to ensure that they best represent their clients,
regardless of the size of the transaction.
If
you have the need for professional M&A assistance,
don’t
hesitate to contact us:
