Private Company M&A Brief
What types of professionals sell companies?
Investment Banks
- Investment bankers specialize in raising capital for businesses and
advising firms on mergers, acquisitions and restructurings.
- In the world of large public company M&A, a number of investment banks
specialize in executing large transactions. These investment banks
include Morgan Stanley, CS First Boston, JPMorgan, Citigroup and Merrill
Lynch.
- Typical services include valuing businesses, performing financial and
strategic analysis, identifying and qualifying potential buyers or acquisition
targets, preparing offering memoranda, assisting in negotiations,
conducting due diligence and assisting in deal documentation.
- However, large Wall Street investment banking firms do not offer their
services to smaller private companies.
Business Brokers, CPAs, Lawyers and Business Owners
- Private company M&A for companies with less than $5 million of
revenues is often managed by business brokers, CPAs and lawyers.
- A business broker's services may include valuing the business, finding a
buyer and negotiating a transaction.
- In many cases, business owners will conduct their own M&A process
under the premise that they know all the logical buyers, can manage the
sales process, know what their business is worth and have sound
negotiation skills.
- The reality is that these non-investment banking professionals and
business owners have limited knowledge in analyzing, valuing and
marketing a company, as well as running an effective M&A process, and
structuring and negotiating a successful deal.
GW Equity offers a unique blend of experience with a proven ability
to execute private company transactions
- GW Equity has developed a strong track record in the industry for
successfully completing a wide range of private company M&A
transactions for companies with revenue ranging from $5 to $50 million.