Merchant Banking vs Investment Banking - Investment Banking by eduCBA
SELL-SIDE INVESTMENT BANKING - Mariner Capital … · sell-side investment banking investment...
Transcript of SELL-SIDE INVESTMENT BANKING - Mariner Capital … · sell-side investment banking investment...
SELL-SIDEINVESTMENT BANKINGINVESTMENT BANKING
VALUATION ADVISORY
FORENSIC ACCOUNTING
AL•LIEDConnected or related by similitude, resemblance, or friendship.
3
Allied Business Group helps business owners realize their strategic and financial objectives through the
sale of their companies. We understand that successful deals occur only when price, fit, and chemistry are
aligned. We also understand that every company is different, and thus every sale process is unique.
Selling a business requires careful planning, a significant investment of time and energy, and the guidance of
an experienced M&A advisor. Our professionals work closely with you to develop a personalized approach to
the sale of your company. Drawing on our diverse industry knowledge, proprietary deal management tools,
and support staff, we can help you achieve your strategic goals while ensuring you receive maximum value
for your company.
Helping you maximize the return on your most valuable investment
4
TABLE OF CONTENTS
OUR SALE PROCESS 05
STEP 1 BUSINESS VALUATION 06
STEP 2 STRATEGIC PLANNING 07
STEP 3 CONFIDENTIAL MARKETING 08
Marketing Channels 09
Marketing Materials 10
STEP 4 DEAL MAKING 12
ClearDeal 13
STEP 5 DUE DILIGENCE & CLOSING 16
Virtual Data Room 17
ABOUT ALLIED 18
When you work with Allied, you work with a
diverse team of professionals from all disciplines
across the M&A sale process.
5
A UNIQUE APPROACH TO THE SALE PROCESS
Our unique and disciplined approach to the
M&A sale process provides our clients with
proven results.
We construct successful deals by implementing a disciplined, proven five-step process on every transaction
BUSINESS VALUATION
We perform a comprehensive review of your business to determine the value of your
company. Our knowledge of valuation theory combined with our first-hand M&A experience
produces highly accurate valuation opinions.
STRATEGIC PLANNING
After conducting in-depth market research, we develop a strategic plan defining how we will
implement our resources to obtain the most beneficial outcome in the sale of your company.
CONFIDENTIAL MARKETING
We develop and execute a marketing plan that is designed to draw interest from a large
number of high-quality buyer candidates who will engage in a competitive bidding process. We
accomplish this while maintaining the highest level of confidentiality surrounding the sale of
your company.
DEAL MAKING
Using our proprietary deal management software tools, we manage correspondence with
interested parties and identify the most qualified buyer candidates. We solicit offers from
these buyers and create a competitive bidding environment to help you achieve maximum
value for your company.
DUE DILIGENCE & CLOSING
We help you prepare for potential buyers as they perform a comprehensive review of your
company. By managing your deal team during this critical stage of the M&A process, we are
able to preserve the momentum of your deal and ensure a successful transaction.
1
2
3
4
5
6
Deriving a value for your company
Our process begins with a comprehensive review of your business from which we derive
a value for your company. Our analysis provides us with a deeper understanding of your
company’s strengths, weaknesses, opportunities, and unique investment merit. This process
also helps us identify issues that could deter a successful transaction. Using this analysis we
create a valuation report that will serve as the basis for determining how we can help you
achieve your strategic and financial objectives through a successful sale.
$
Our knowledge of valuation theory combined
with our first-hand M&A experience produces
highly accurate valuation opinions.
STEP 1 BUSINESS VALUATION
Due DiligenceCompany Documentation
Financial & Legal Review
Management Discussions
Facility Tour
External & Internal AnalysisEconomic Analysis
Industry Analysis
Company Risk Analysis
Financial Analysis
Valuation AnalysisIncome Approach
Market Approach
Asset Approach
Discounts
ReportPresentation of Report
Print and Digital Formats
Tips to Maximize Value
7
Determining a course of action
We conduct exhaustive market research to find
the best strategic buyers for our clients.
STEP 2 STRATEGIC PLANNING
During the strategic planning process, we define how we will implement resources
to obtain the most beneficial outcome in the sale of your company. We establish the
marketing strategy to sell your company, outline the timing of key events in the M&A
process, and determine how best to present the unique characteristics of your company.
COMPREHENSIVE BUYER LIST
We perform independent research to compile a list of potential strategic acquirers that
includes contact information for key executives at each company. We also leverage our
proprietary database, which contains more than 8,000 private equity investors who have
registered with our firm as buyers.
8
Creating competition between the best prospective buyers
Private Equity Buyer Registration
4 Future? (#): 2
Our database of financial buyers includes over
8,000 private equity contacts.
STEP 3 CONFIDENTIAL MARKETING
Our marketing process is designed to draw interest from numerous prospective buyers
to create a competitive bidding environment for your company. We accomplish this while
maintaining the highest level of confidentiality regarding the sale of your business.
MAINTAINING CONFIDENTIALITY WITH PROSPECTIVE BUYERS
Our buyer qualification process protects client confidentiality and creates a more effective sale
process by focusing only on the highest quality buyers.
As a first step, we require all prospective buyers to complete our online buyer registration
form. The information gained from this step allows us to assess the prospective buyer’s
ability to complete the acquisition. We then conduct further diligence to evaluate the buyer’s
reputation when completing transactions. Once we determine that a prospective buyer is
qualified we require them to sign a confidentiality agreement. We give prospective buyers the
name of your company and access to the marketing materials we’ve created for your business
only after they have submitted a signed confidentiality agreement to us.
Bay View Equity Partners* Company Name:
Thomas Kane* Full Name:
2012 Fremont Street* Address:
San Francisco* City:
CA* State: 94105* Zip:
(415) 495-1800* Work Phone:
(415) 255-4872Mobile Phone:
[email protected]* E-mail Address:
www.bayviewpartners.comWebsite URL:
Prior Acquisitions (#):
Midwest* Geographic Preference:
Majority RecapitalizationPreferred Transaction Type:
Sponsored Fund* Fund Type:
Equity* Types of Capital Provided:
<$10M$10-$25M$25-$50M
$250M+$50-$100M
* Fund Size:
<$1M$1-$5M$5-$10M
$25M+$10-$25M
* Funds Available for Acquisitions:
Consumer GoodsFinancial
Services
Healthcare
Technology
Industrial Goods
Basic Materials
* Target Sectors:
$3-$5M$5-$10M$10-$25M
<$1M$1-$3M
* Target EBITDA:
$50-$100M$100-$250M
$1-$10M$10-$25M$25-$50M
* Target Revenue:
Aerospace
Packaging & ContainersPrinting & PublishingSoftware
Agriculture
Transportation
Metal Fabrication
* Target Industries:
* Indicates required field
9
Maximizing exposure through numerous marketing channels
We utilize several different marketing channels to promote your company to strategic and
financial buyers. Your company’s name is kept confidential in all communications throughout
this initial process.
We prepare a set of materials used to market your business for sale. These documents are
used to position your business in the most beneficial manner.
@DIRECT MAIL
We use direct mail to send a personalized cover letter and confidential
profile to the entire strategic buyer list. This provides a secondary method
for outreach in addition to e-mail communication.
WEB MARKETING RESOURCES
We complement our direct marketing activities with web marketing to
reach additional private equity firms and individual investors. Our web
marketing initiatives allow interested parties (who were not included in our
distribution list) to search for your investment opportunity.
Allied maintains strict confidentiality in every
M&A sale process.
MARKETING CHANNELS
Allied makes phone calls to obtain e-mail addresses for strategic buyer
contacts and then sends e-mails to the strategic and financial buyer lists.
Messages are sent through an online platform that provides tracking
features, allowing Allied to monitor the interest level of all e-mail recipients.
10
Confidential InformationMemorandum (CIM)
This 50-75 page book is the most
important document for the sale
of your business. It provides an
in-depth look at your company’s
operations, management team,
past financial performance, and
future opportunities.
Confidential Profile
To generate interest in your business while maintaining
confidentiality, we develop a one-page synopsis that
highlights your company’s products, services, and
historical financial performance without identifying the
business by name. We attach a cover letter and distribute
this piece to the entire strategic buyer list.
MARKETING MATERIALS
11
Video CIM
Your company is about so much more than just numbers on a financial
statement and the Video CIM helps us convey that to the most qualified buyers.
This one to two hour video features interviews with management and key
personnel, as well as a tour of your facility. It provides a controlled message that
prospective buyers can replay multiple times before scheduling a site visit to
meet with you. More importantly, it helps them better understand the unique
strengths of your business.
12
Aligning strategic fit, chemistry, and price
During the M&A sale process, a vast amount of correspondence occurs between your M&A advisor and prospective
buyers. Efficiently managing this correspondence is critical in fostering a competitive bidding environment and
completing a successful transaction. Allied is unique among M&A advisors in that it has created a proprietary web-
based tool, ClearDeal, to help achieve this objective. ClearDeal helps Allied’s professionals manage high-activity
deals while maintaining clear and constant communication between their client and prospective buyers.
ClearDeal plays a vital role in managing the deal making process which consists of three stages:
We provide a transparent M&A process, keeping
you fully informed as we conduct our
evaluations of prospective buyers.
STEP 4 DEAL MAKING
INITIAL BUYER RESPONSE
We field initial inquiries from your deal’s confidential marketing campaign and respond to all
information requests regarding your company. We process executed confidentiality agreements
and buyer registration forms before providing buyers with confidential information.
PROPRIETARY DEAL MANAGEMENT PLATFORM
We enter each prospective buyer’s information into ClearDeal, our proprietary deal management
platform. Once a buyer is added to our system, we track all subsequent correspondence with
the party. The information collected for each buyer is aggregated into ClearDeal’s buyer ranking
feature, which allows us to narrow the buyer pool down to candidates who offer the best
strategic fit and chemistry.
LETTER OF INTENT
After we have identified the most qualified buyer candidates, we solicit multiple bids in the
form of a Letter of Intent (LOI), creating a competitive bidding process. Using our proprietary
transaction analysis model, we evaluate each buyer’s bid. Our experienced deal team negotiates
the terms of the offers until they meet or exceed your expectations.
13
ClearDeal, our online deal management platform, gives you a secure, confidential channel
for collaborating with your M&A advisor and staying up-to-date on any developments with
prospective buyers. Designed after our proprietary transaction process, ClearDeal features an
automated buyer communication system that helps us streamline correspondence, increase
response rates from prospective buyers, and document in-depth information about every
activity we perform on your behalf.
ClearDeal is an innovative web-based
tool that enhances transaction efficiency
and success.
CLEAR DEAL
14
CLEAR DEAL
ClearDeal tracks all correspondence we have with prospective
buyers on your behalf. Not only can you see who we
communicate with, you can monitor how and when our
conversations occur and review a summary of our discussions.
Monitor deal activity
15
You can see what
types of prospective
buyers are interested
in your company and
review how we have
ranked them based
on a combination of
different factors.
ClearDeal captures the
current progress of
your deal and provides
a visual breakdown
of the activities and
interest level of
prospective buyers.
Project Dashboard
You can also track prospective buyers
based on the number of times they view
your company’s marketing materials.
16
With help from the rest of your deal team, we negotiate the terms of the definitive purchase
agreement. Our team will organize all closing documents and walk you through the signing of
them. Finally, we will coordinate with the buyer to arrange a wire transfer of payments due at
closing to complete the purchase of your company.
The final steps
We proactively address buyer concerns before
they can jeopardize the transaction.
STEP 5 DUE DILIGENCE & CLOSING
Once we have negotiated a signed LOI with a prospective buyer, we help you manage the due
diligence process. During due diligence, your business will undergo intense scrutiny. The buyer
will carefully review your company’s operations and financial statements and will request large
amounts of information to verify the accuracy of every representation that has been made
about your business.
We oversee the data collection process and fulfill information requests made by the
prospective buyer. Our professionals also manage your M&A deal team, which typically
consists of attorneys, accountants, and other key advisors. These professionals will help
structure your transaction, negotiate a final purchase agreement, and address issues
presented by the buyer during the due diligence process.
Preserving momentum and ensuring a smooth, successful transaction
17
A controlled delivery of your most sensitive company files
A vast number of documents are exchanged during the due diligence process, from
financial statements to customer contracts to employee records. Our VDR provides a
secure, centralized platform through which buyers and sellers can exchange key documents
while monitoring who uploads, downloads, or views every piece of information. The VDR
dramatically simplifies what was once a cumbersome and overwhelming process.
We streamline the information sharing
process to complete due diligence
in a timely, secure, and efficient manner.
VIRTUAL DATA ROOM (VDR)
18
Founded in 2002, Allied Business Group is a boutique investment bank providing mergers and
acquisitions advisory, valuation advisory, and forensic accounting services to privately held companies
throughout the U.S. Our diverse team of professionals provides solutions to the complex challenges and
opportunities faced by business owners.
About Allied Business Group
A competitive bidding market for privately held companies does not appear by accident; rather it must be constructed through extensive research and precise execution of a strategic marketing plan.
ALLIED BUSINESS GROUP, LLCADDRESS 7007 College Blvd., Suite 400 Overland Park, KS 66211
PHONE 913.897.3599
FAX 1.888.857.0169
E-MAIL [email protected]
WEBSITE www.alliedbizgroup.com