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Benchmark International Successfully Facilitated the Transaction of Osborn Equipment Sales, Inc. to Still Holding Company

Benchmark International has successfully facilitated the transaction of Osborn Equipment Sales, Inc. to Still Holding Company. Osborn Equipment Sales, Inc. has been in business for over 60 years and serves as a manufacturer’s representative of dry process material handling equipment to customers located within Oklahoma, Western Arkansas, and the Texas Panhandle.

Still Holding Company is owned by Roy Still, an individual with an M&A advisory background, who currently owns a diverse portfolio of businesses in the Tulsa, Oklahoma region, including funeral homes in the area.

Vice President, Keith Garoutte of Osborn Equipment Sales, Inc. commented, “We are a 60- year-old company located in Oklahoma. After 40 plus years of owning the company, my business partner and l were thinking about retirement. We were contacted by Benchmark International wanting to know if we were in the market to sell our company. It was perfect timing for both of us. Benchmark International sent a gentleman to meet with us and after several phone calls we had reached an agreement to have Benchmark International solicit our company for sale in March 2019. We supplied Benchmark International with all the information they had requested, and they proceeded to market our company. Benchmark International found several companies interested in purchasing our company and after only a few months we were in negotiations. We were finally able to close and collect our money on January 6, 2020. Benchmark International did an outstanding job in marketing our company. We were very impressed with their sales team and their sales and negotiation knowledge. Their sales experience made selling our company very easy and without headaches. I would definitely recommend Benchmark International if you want a professional and aggressive sales team to sell your business.”

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J.P. Santos, Associate at Benchmark International added, “Randy and Keith were a pleasure to work with and the Benchmark International team is excited that we were able to play a role in the successful sale of their business. From the beginning of the sales process, Randy and Keith were looking for a buyer who could continue their legacy of decades of high quality service, as well as, meet their goals from the sale as they look towards their future endeavors. Roy Still was able to accomplish both of those objectives and the company looks to continue its success under his stewardship.”

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2020 Outlook For The Global Energy Sector

The global energy mix is comprised of the oil, liquefied natural gas (LNG), coal, renewable energy, and electricity sectors. The landscape of this industry has seen a great deal of change over the years, and is primed for even more change in the future. Five years ago, fossil fuels accounted for 82 percent of global primary energy. This number is targeted to decline, with large growth in the natural gas and renewable energy sectors, especially wind and solar. However, a rising global population and economic growth make it challenging for renewables to keep up with demand, meaning that fossil fuels will remain a primary source as energy demand will rise one percent each year over the next 20 years.

Oil & Gas

Oil output is projected to remain on the rise in the next 10 years, with 85 percent of the production increase coming from the United States. At the same time, oil demand is expected to slow after 2025 due to better fuel efficiency and more electric vehicles, according to a report by the International Energy Agency (IEA).

In 2020, shale production in the U.S. is expected to continue to grow even as growth is slowing due to reduced capital expenditures from drillers. Additionally, exports of U.S oil and LNG are forecasted to grow as infrastructure capacity increases.

As the number of U.S. oil and gas companies in distress grows amid limited funding options, there is an opportunity for smaller firms to be acquired by bigger firms, or for them to merge in order to scale operations and reduce costs. M&A strategies may be more appealing to these companies than the option of restructuring through bankruptcy.

Oil and gas prices should remain range-bound this year as production increases from non-OPEC nations such as the U.S., Brazil, and Norway.

Internationally, oil markets will be affected by the ongoing trade negotiations between the U.S. and China, as well as the result of the March expiration of the OPEC+ pledge between OPEC and non-OPEC partners for deeper production cuts.

 

Ready to explore your exit and growth options?

 

Coal

The coal industry continues to experience challenges, including declining demand, bankruptcies, climate concerns, ownership changes, and mine closures. Coal production in the U.S. is expected to decline, along with the amount of energy production that relies on coal, which is at its lowest level in more than 40 years. In contrast to the struggling coal industry, increased growth is forecasted in the renewable energy sector. According to the IEA, market share for coal will fall from 38 percent today to 25 percent in 2040, largely due to a surge in more affordable solar power.

Renewable Energy

The outlook for the renewable energy industry in 2020 is quite favorable. The sector has already seen unprecedented growth propelled by increased demand, competitive costs, innovation, and the uniting of industry forces. Renewables are likely to become a preferred provider in electricity markets this year, as customers are more concerned with saving money and addressing climate change issues. Last year, renewable energy eclipsed coal for the first time ever in the United States, with wind and solar energy accounting for about half of renewable power generation. Companies that are poised to innovate and jump on new opportunities will be in a position to thrive in this new growth phase.

Some key points regarding this sector include the following:

  • China has been the largest investor in renewable energy capacity, committing $758 billion over the past decade. The U.S. follows at $356 billion, with Japan third at $202 billion.
  • Lower prices for renewable sources and battery storage have helped to drive growth in this industry, making wind and solar more competitive with traditional energy sources.
  • Several utility companies have already outlined goals for de-carbonization and more are expected to follow suit.
  • Renewable energy will need to be scaled up significantly in order to meet the goals outlined in the Paris Agreement.
  • In 2019, 11 of the 28 countries in the European Union already met their 2020 renewable energy targets, but there has been a gradual slowing of the rate of renewable use because costs have fallen and less investment is needed to install the same level of power capacity.
  • Grid modernization projects will also contribute to growth, as renewable microgrids are becoming more popular solutions for increased efficiency.
  • In the U.S., the Production Tax Credit has been extended for 2020. However, the amount of the Solar Investment Tax Credit will be reduced from 30 percent to 26 percent. Both of these credits have been important drivers of growth in this market.

 Electricity

Power and utility companies will face several priorities and challenges in 2020, but with a balance of careful strategic planning, digital innovation, and risk management, the industry can sustain growth throughout the year.

  • Clean energy remains a major priority, as many power and utility companies are setting their own clean energy goals to help customers make the transition.
  • Cyber security is an increasing concern, with vulnerabilities being a clear and present danger.
  • Preparation and response for natural disasters will be more significant as major storms have become more common around the world.
  • Providers will continue to be more focused on improving the customer experience.

Let’s Discuss Your Options

Please contact us at Benchmark International to talk about how we can help you grow your business or formulate a solid exit plan for the future, no matter what industry in which your company operates. We look forward to hearing from you.

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Congratulations to Kendall Stafford for Being Awarded as One of the Top 10 Most Successful Businesswomen to Watch

A special congratulations to Managing Partner, Kendall Stafford at Benchmark International who was recognized and awarded by Insights Success Magazine as one of the top 10 most successful businesswomen to watch in 2019.

Insights Success Magazine focuses on leading companies, their style of conducting business and ways of delivering effective solutions to strengthen market share.  

Kendall was recognized for her compassionate leadership skills and M&A knowledge that continue to shine throughout her career and success with Benchmark International.  

Kendall began as a Director at Benchmark International’s US headquarters in Tampa, Florida. She now resides as the Managing Partner at Benchmark International’s Austin office, where she continues to lead with compassion, empathy, and transparency not only for her clients but for her team.  

She is responsible for motivating and mentoring the team in Austin, ensuring customer service standards are consistently met, and effectively transacting duties the team was hired to perform.  She says, If I do these three things successfully, everything else falls in line. My effective communication, organization, and negotiation skills serve me well in this role.” 

Kendall's reaction to receiving this recognition and award demonstrates her determination to continue to be a leader in this space and an inspiration for other women. “I’m honored to have been recognized for this award. I think it is a testament to the values I hold for myself but also for the values I continue to evoke as my role as Managing Partner at Benchmark International.”  

Kendall added in the article that for budding women leaders, she advised, “Young women who would like to start their own business should just go for it. There’s no time like the present and you must believe in yourself. Don’t listen to anyone that says you can’t do something and never let fear stop you from trying. You will learn a lot about yourself and your business during the journey and, ultimately, you will be surprised at what you accomplished along the way.” 

Check out the complete article here, and again a special congratulations to Kendall Stafford for being acknowledged and receiving this prestigious honor.  

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Do You Want To Be Featured At The Savca 2020 Southern Africa Industry Conference?

Get Your Business Showcased At The Local Industry's 'Must Attend' Event

Benchmark International is pleased to announce that we will be contributing material to the attendees’ welcome pack at the SAVCA Southern Africa Industry Conference from February 25th-27th at the Spier Wine Farm.

In 2019, the SAVCA Conference attracted 437 Private Equity delegates and 195 Venture Capital delegates who represented local and international institutional investors, fund managers, advisors policy makers and entrepreneurs.

 

Learn More About the SAVCA Southern Africa Industry Conference Here

Would you like to be showcased to these industry leaders with strong, acquisitive appetites? We will be including a limited number of client investment profiles in the flyers which will form part of the delegate bags. Contact us now to ensure your business is included.

Schedule A Call

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2020 Global Outlook For The Media Industry

The New Media World

The media industry has undergone several major transformations in the Internet age. Magazines and newspapers have been disrupted by digital publications. News consumption has been significantly altered by the existence of social media. Broadcast radio is now challenged by satellite radio, podcasting, and both free and fee-based music-streaming services. Television continues to undergo sweeping changes that come with more and more people cutting the cord, smart TVs, and the inundation of subscription streaming platforms on a variety of scales. And all of these sector trends affect how advertising dollars are being spent and how audiences are being targeted. 2020 proves to be no different, as these trends will continue to reshape the industry.

Streaming Wars

Companies and TV networks are faced with the task of inventing new offerings for delivering content in ways that facilitate direct relationships with consumers. New bundling and tiered options will be more in demand as viewers grow frustrated with having to manage various streaming options amid a crowded sea of subscription services that go beyond Netflix and Amazon Prime. Individual TV networks are offering their own on-demand services (such as HBO Now), and big industry players are getting in the game with their own digital networks such as Disney+. And the availability of tiered streaming platforms such as BritBox and Sling TV continues to grow. The major streaming networks will be faced with how to leverage an influx of competition. These options will also need to address how advertising is delivered regarding ad-free options and ad-supported video.

Podcast Popularity

There are currently more than 700,000 active podcasts, and research shows that the consumer appetite for podcasts continues to thrive. Podcasts are going to be seen as a new vehicle for content and will garner more advertising money, with predictions that the spending amount will surpass $1 billion by the end of 2020.

 

Ready to explore your exit and growth options?

 

For the Love of Data

As media companies compete for more audiences, data will become more imperative to achieving the goals of these companies. This means that the data platforms used by media companies and advertising agencies are going to become paramount. The gathering and processing of the third-party data needed to create more meaningful and personalized experiences and services for consumers will be essential to the ability to remain competitive.

User-Generated Content

In today’s social-media-driven world, users are able to generate their own content through various mobile applications such as SnapChat and TikTok. As more of these types of platforms emerge, larger parent companies (such as the Facebooks and Googles of the world) may be inclined to acquire them to diversify their offerings and expand their user bases.

M&A Opportunity

As media companies continue to need more diverse content and content delivery options, it creates significant opportunities for mergers and acquisitions. This M&A activity is expected to be on smaller scales than the megadeals that occurred in the last couple of years. This is because there are fewer opportunities for the major networks to consolidate, especially as there is a growing over-supply of third-party streaming applications and the content rights are being withdrawn. 

Contact Us

If you think that it is time to sell or grow your company, or even start your exit planning strategy, please reach out to our experts at Benchmark International. We look forward to taking your future to the next level.

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Why 2020 Is The Right Time To Transition A Business

When determining the best time to sell or exit a company, unfortunately nobody has a crystal ball. However, there are several circumstances that should be considered, from fundamental business positions to external influential factors.

The state of the M&A market is among the most significant factors in a decision to sell a business. The market held steady from 2015 to 2017, and optimism skyrocketed in 2018. In 2019, the market dipped slightly but remained strong in deal volume and value, with a wave of multi-billion-dollar megadeals being completed.

While some expect a modest drop in global M&A value in 2020 due to what is perceived as inevitable economic correction after a lengthy, seemingly unstoppable up-cycle, many experts predict that little change is expected due to sustained economic growth, low unemployment, low inflation, high consumer confidence, and strong corporate earnings. Companies still have a need to diversify their portfolios, acquire talent, and innovate technologies in order to stay competitive—all needs that are best addressed through M&A. Also, plenty of capital is available and private equity has amassed the dry powder that can drive larger deals, even in the event of an economic downturn.

Additionally, there is potential for more aggressive M&A strategies earlier in the year to get ahead of a potential downturn and downgrade in valuations. Companies that have proven to perform well during times of recession may be especially appealing targets.

The 2020 U.S. Election

Regarding a potential downturn, one of the major factors that play into the state of this year’s M&A market is the upcoming November 2020 presidential election in the United States and the issue of impeachment of the current president. History indicates that economies typically perform well in election years. However, as uncertainty looms contingent upon the results of the election when it comes to topics such as trade and regulation, acquirers may become hesitant and the M&A market could lose momentum leading up to November, with the market remaining slow in the months following, depending on the election results.

Another matter affected by the election results is capital gains taxes, which is a matter of concern if you are selling a company because how much profit you yield from the sale will be taxable. Some presidential candidates are proposing higher taxation of the highest-income taxpayers’ accrued wealth and income, and this includes capital gains. Most candidates’ plans would tax capital gains at ordinary income rates, with just the very top marginal tax rates varying at incomes of more than $488,850.

The closer the election nears, the more every single day counts. If you hope to sell, the sooner you initiate the process, the better, as most M&A deals take several months.

Ready to explore your exit and growth options?

Brexit

As of January 31, 2020, the United Kingdom is officially no longer part of the European Union, but a second round of negotiations will continue with the goal of reaching a deal by the end of 2020. With lessened political uncertainty now that an initial Brexit deal has been made, there is heightened confidence in deal-making activity. The inability to make a second deal by the end of the year will mean higher costs and barriers to trade.

The Brexit situation is affecting changes to M&A strategies. M&A could be used to secure an operational presence in the EU to maintain access to European markets. M&A could also facilitate access to markets outside the EU. Additionally, some companies could be facing new pressures that can directly impact share prices.  

The Boomer Retirement Wave

While it seems as though we have been talking about it for years, the Baby Boomer generation remains a factor in 2020.

According To Pew Research Center population data, 10,000 Baby Boomers will turn 65 on each day of this year.

In the U.S. alone, Baby Boomers own 2.34 million small businesses, and employ more than 25 million people. This aging ownership pool points to a flood of M&A activity in the lower and middle markets this year, especially in certain sectors such as those that offer professional services.

As this population retires, there will be an increased need for consolidation, succession planning, and exit planning. If Boomers do not properly plan for these scenarios, it could result in an economic crisis that in turn affects millions of jobs. Also, most of these business owners have the majority of their net worth tied up in their company. This means that if the company should lose value, so does the owner’s ability to retire.

The unfortunate reality is that the majority (75%) of owners of small to mid-sized businesses choose to procrastinate and do not have a plan in place. If you are a part of this generation, you should most certainly already have your plans for the future underway. Even if you are not a Boomer and are considering selling, this is the time to get ahead of the massive wave of businesses that are expected to hit the market this year.    

Are You Ready to Sell?

If you are considering selling your business, we encourage you to enlist the expert M&A guidance of Benchmark International’s team to create your growth strategy, exit strategy, or company sale for maximum value. The time to start planning is now.

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Benchmark International Facilitated the Transaction Between Catastrophe Cleaning & Restoration Co, Inc. and Interstate Restoration

Catastrophe Cleaning & Restoration Co, Inc. (“CATCO”) has been acquired by Interstate Restoration. CATCO is a 50-person company that has operated for over 35 years providing highly-skilled restoration and remediation expertise to residential, commercial, public, and industrial customers.

Former owner Michael Hammack will continue as President as he helps transition the firm.

Michael Hammack, President of CATCO commented, “Benchmark International and Robert West were very professional, knowledgeable, extraordinarily helpful, and extremely encouraging during the sales process.  Robert and his team ran a focused and competitive process resulting in a great cultural fit and financial outcome.  CATCO looks forward to many years of success under the ownership of FirstService | Interstate Restoration.”

Ready to explore your exit and growth options?

Interstate Restoration is an emergency response and general restoration contractor founded in 1998.  With more than 50 locations spread across the US and Canada, they have a proven record of providing rapid disaster response in every corner of North America. Interstate is a subsidiary of FirstService Corporation (NASDAQ: FSV), a Canadian public property services company generating over $2B in annual revenue.

Tyrus O'Neill, Managing Partner at Benchmark International stated, “This was one of the more rewarding client relationships I have had the opportunity to build over my time with Benchmark International.  Our team being intimately involved with Michael and his company through marketing, deal negotiation, and financial due diligence afforded us the opportunity to stitch together a deal that made tremendous sense for the client in both a cultural and financial context.  He was able to monetize the great business he has built while also handing the keys over to an organization in Interstate that will genuinely carry on the legacy of CATCO as it continues to grow its presence.” 

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2020 Global IT Industry Outlook

The global Information Technology industry encompasses the sectors of hardware, software and services, telecom, and emerging tech including ‘as-a-service’ solutions under the umbrella of the Internet of Things (IoT) and automating technologies.

 The global IT industry is projected to reach $5.2 trillion in 2020, with global spending growing 3.7%

As the world continues to be more digitally connected and industries become more automated, technology will remain a massively growing market in the beginning of the new decade, especially as companies focus less on cost reduction and more on innovation.

The United States is the world’s largest tech market, accounting for one-third of the total market, and exceeding the gross domestic product of most other industries. Although the US market is so large, the lion’s share of tech spending actually happens outside of the US (68%) and is made by enterprise or government entities. Western Europe is a major contributor in the global tech market, and China is also a significant player with focuses in robotics, infrastructure, software, and services.

 

Ready to explore your exit and growth options?

 

Forecasted IT Spending

In 2020, IT spending budgets will be largely driven by the needs to upgrade outdated infrastructure, address security issues, and accommodate growth. The amount of spending and the mix of services will vary by company size.

  • Smaller businesses are expected to spend more on hardware such as servers and laptops.
  • Mid-size companies will be spending more on mobile devices.
  • Larger corporations will spend more on managed infrastructure IT services such as power and climate solutions.

For software spending specifically, small businesses will focus their spending on operating systems. Mid-size companies will have a larger budget for productivity software and business support applications. Large enterprises will be spending more of their money on virtualization, database management, and communications software. Cloud services and recovery software will represent major budget allocations in the coming year and cloud spend will vary by company size.

Cloud Security

With the increasing popularity of cloud-based software and services and hybrid cloud solutions comes the increasing concern regarding cloud security. This is further reinforced by an ongoing rise in cyber attacks and data breaches. Cloud-based security solutions will remain a growing need across several sectors, especially in highly regulated ones such as finance and government. The global cloud security market was anticipated to garner $8.9 billion by the start of 2020. This need will create more opportunities for companies, entrepreneurs and investors.

 

Feel like it's a good time to sell?

 

The Year of 5G

The highly anticipated 5G technology will see a much more momentous rollout in 2020, in contrast to the lackluster emergence in 2019. Hundreds of millions of 5G-enabled smartphones are expected to ship in 2020. 5G will deliver significantly high speeds and remarkable data capacity to expand the financial possibilities for businesses. It is able to support billions of connected devices across sectors, allow new innovation for the IoT, Artificial Intelligence, and Virtual Reality. It will also enable a new world of autonomous vehicles and smart cities through a fully connected society, shattering boundaries to create a scalable global marketplace through unified technologies. Businesses will need to be prepared with how this new technology is going to dramatically alter the possibilities of the cloud and the need for virtualization-based networks as opposed to fixed-function equipment. While it is not going to happen overnight, 5G technology will grow increasingly more available throughout 2020, changing the availability of certain devices and transforming industrial possibilities.

Edge Computing

Edge computing is not a new concept, as it has existed for years. However, the value opportunity that it represents across industries is enormous. 2020 is anticipated to be a highly emergent year for edge computing due to the availability of faster networking technologies such as 5G and analytic capabilities in smaller devices.

Edge computing allows data processing to be done physically closer to where the data is generated (the edge of the network) rather than at a massive data processing center, which in turn reduces latency and processes the data much faster. This opens up countless new opportunities. Additionally, this technology offers several benefits for businesses, such as reduced costs, improved energy efficiencies, predictive maintenance, increased reliability, smart manufacturing, and security enhancements.

Let’s Talk Soon

At Benchmark International, our team of M&A advisors is ready to help you plan the next steps for you and your company. Whether it is selling your business, creating an exit strategy, seeking investor assistance, or finding ways to create growth, we are here to work on your terms to help you make your future as bright as possible.

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The Aviation Industry and M&A

The transportation industry on a whole has seen major opportunities for investment thanks to a myriad of technological advancements such as self-driving cars, ride sharing and alternative fuels. As technology permeates all global industries, the aviation industry has its own unique circumstances, and must turn to acquisitions and market share to create competitive advantages in the 21st century.

Major areas of focus include aerospace, defense, supersonic travel, artificial intelligence, robotics, cybersecurity, surveillance, and communications. The idea of space exploration has become more privatized. It is not just about commercial astronauts anymore, but about making it possible for everyday people to engage in space travel. Also, urban on-demand air transportation is redefining the possibilities for how people commute to work. This technological advancement is proposed to use three-dimensional airspace to ease traffic on the ground, save commuters time and money, and provide a safer yet still relatively quiet travel option.

Aerospace and Defense (A&D)

As global A&D spending increases, so does the opportunity for M&A activity. In our digitized world, threat and risk mitigation continue to take on more importance, resulting in more mergers and acquisitions within IT, cybersecurity, and space companies.

Commercial aerospace firms are stretching their aftermarket capabilities to gain repair revenue over the lifespan of an aircraft fleet and benefit from improvements within the areas of electronics and avionics.

Private equity investors are also becoming more attracted to this sector, looking to sink capital into targets that have high growth prospects and high margins.   

 

Feeling unfulfilled? Explore your options...

 

Aircraft Backlogs and the Maintenance, Repair and Overhaul (MRO) Market

Commercial aircraft order backlogs also drive M&A activity in the middle market, as equipment manufacturers within the supply chain must respond to the demand, and are sitting on a tall stack of orders. Over the next 20 years, around 40,000 new aircrafts are slotted for production. Major airlines have a tendency to prefer larger suppliers, so consolidation to create more efficient and reliable MROs is a tactic that ensures the orders can stay on pace without major delays. As this consolidation occurs, it becomes more difficult for smaller, independent MROs to compete, causing them to team up with larger original equipment manufacturers (OEMs) in order to meet demand and avert delays.  

Pilot Training

There is an existing and growing pilot shortage that presents a major challenge for all airlines around the world. According to Boeing, it is estimated that 800,000 new pilots will be needed over the next 20 years. More pilots are reaching the mandatory retirement age at the same time that an increasing number of people around the world are booking flights. Plus, military expansion means a reduction in the pool of military pilots that are typically sourced by commercial aviation. These factors all combine to create new opportunities in M&A in the global aviation industry through the need for pilot training and the creation of new, more efficient flight simulators, as well as the development of autonomous piloting technologies.

 

Ready to explore your exit and growth options?

 

A New Era of M&A

M&A activity is crucial to the many new types of developments in the global aviation industry. Private equity and venture capital are needed to keep the innovations coming, alongside the pursuance of new growth strategies and market retention by existing industry players. M&A in the aviation industry has become very much about bringing new services to new markets. This changes the way competitive companies must view each other, calling for more collaboration in order to drive innovation and create value.

It is strongly advised that anyone entering into the complex world of aviation M&A obtains an advisor that has the appropriate experience to conduct proper due diligence, navigate the intricacies of the industry, create the right connections, and be familiar with the industry-specific regulatory environments. 

Contact Us

At Benchmark International, we’d love to start a conversation about how we can help you grow or sell your company. Schedule a chat with one of our M&A experts today. Our global network of buyers and our innovative processes make us recognized around the world for getting great deals done.  

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Tips For Evaluating A Buyer’s Letter Of Intent

A Letter of Intent (“LOI”) is an expression of the buyer’s intent to acquire a seller’s business on specific terms and conditions.  It is considered a milestone in the transaction process, primarily because it is predicated on the concept that the seller and buyer have agreed upon the basic terms, assuming that due diligence supports assumed facts.

An LOI is generally non-binding as to substantive terms (price, transaction structure, and forms of consideration) but is often binding as to process items. These include access to seller’s information, cooperation by the parties, seller’s exclusivity obligations, seller’s obligation to conduct business in the ordinary course, governing law, confidentiality, and allocation of expenses.

Sellers need to manage their expectations and be aware that buyers can still walk away from the deal even after they have reviewed sellers’ sensitive information provided in due diligence.  If the buyer is a direct competitor, this can have unintended consequences for the seller, notwithstanding well-drafted non-disclosure agreements with limitations on use of the information.  For example, will a strategic buyer determine through due diligence that investing the purchase price in their own business is more cost-effective than paying an acquisition premium?  It is critical that the seller and his/her advisor carefully evaluate all offers and determine if the buyer has the actual intent and financial wherewithal to close the transaction before signing the LOI.

 

Ready to explore your exit and growth options?

 

Here are some basic considerations for evaluating an LOI.

  • Is the deal too good to be true? Reasonable business practitioners do not offer consideration or terms well above the norm.  Such offers often end in re-trades or worse, in a long period of failed efforts to secure acquisition financing, during which time the seller’s business is off the market because of exclusivity.
  • How will the buyer finance the transaction? Cash at closing or bank debt. Third-party financing adds significantly to the complexity and timing considerations of the transaction. The seller should consider requiring satisfactory evidence of a financing commitment early in the process, with the ability to break exclusivity, and perhaps recover out of pocket costs if it is not provided in a timely manner. 
  • How will the seller be compensated? Will the seller receive the full purchase price in cash at closing? What indemnification provisions (how much for how long) apply?  Is rollover equity a component of the deal?  Is stock of the buyer a component of consideration?
  • Is the transaction cash-free/debt-free? If so, does the seller’s balance sheet indicate that a substantial portion of sale proceeds go to retirement of debt?
  • Does the transaction include a working capital adjustment? Assuming that value is based upon a stream of cash flows, a “normal” level of working capital (that historically facilitated the income streams used to determine value) will be required at closing.  Careful attention must be given to how this issue is treated in the LOI, and in the asset or stock purchase agreement, because working capital adjustments (based upon factors determined in a quality of earnings review) are often used as an effective re-trade by sophisticated buyers.
  • What post-closing involvement is required of the seller? Will the seller be required to continue in the business post-closing?  For how long and for what compensation?
  • What non-competition requirements are required? Most acquisition agreements include a non-competition provision that lasts from two to five years.  The points for consideration include geographic location, limitations on the type of business precluded, passive investment versus active participation, and the overall length of time the limitations are effective.

It is crucial to understand that an LOI is not the end of the transaction process, but for legalities.  It is, in effect, just the beginning. Due diligence and quality of earnings review, drafting the asset purchase agreement, and financing the acquisition are all yet to come.  The terms of the LOI can have a serious affect on the seller’s ability to realize his expectations through this process.

 

Author
Don Rooney 
Transaction Director
Benchmark International

T: +1 813 898 2350
E: Rooney@BenchmarkIntl.com

 

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14 Common Misconceptions About Selling A Business and Engaging an M&A Firm

1. “I can conduct the sale myself.”
You could. But you are likely to get a much better deal if you have the guidance of an M&A professional on your side. Not to mention, you are going to have far less of a headache if you do not take on this complex process on your own. It’s going to take a good bit of time and is going to involve meticulous details. The help of an M&A expert also allows you to remain focused on running your business instead of getting caught up in the sale process and being overwhelmed by trying to juggle both, just to get a smaller profit.

2. “I already know my buyer.”
You know your business better than anyone, so it is easy to assume that you will know your perfect buyer. But it is a competitive world and there are many types of buyers that could be a great fit. Fixating on one type of buyer limits your options. Exploring all of your prospects will allow you to maximize your sale potential. This includes buyers that may not even be in your same industry. You are more likely to find the right buyer with the help of an M&A firm that has global connections and vast experience brokering these types of deals.

3. “Selling will only take a few weeks.”
It is very rare that any merger or acquisition is completed quickly. It typically takes months to years to find the right buyer and iron out the details of the sale. Six months is a common estimated timeframe for small to mid-sized businesses.

 

Feeling unfulfilled? Explore your options...

 

4. “Asking price will be the purchase price.”
These are not the same thing. Following negotiations, it is common for the sale price to be lower than the asking price. A qualified M&A advisor can determine the fair market value of your business, help to maximize this value, arrange a better deal, and manage your expectations regarding the transaction.

5. “A buyer's financing is not my problem.”
A buyer's financing should surely concern you because they cannot buy your company without the capital needed to do so. You can play a role in moving the process along by boosting lender confidence through your testament as to how the business can continue to thrive under new ownership.

6. “I already have the advisors I need.”
As a business owner, you have skillful attorneys and accountants on your side that deserve credit for the fine work that they do in their areas of expertise. But it is unlikely that they are experienced in conducting complicated M&A deals. Even if they have a small level of experience with M&A, it probably is not enough to ensure that you get the best deal possible. Remember that selling your company is a monumental one-time deal that will impact the rest of your life. Consider how much you really want to risk your life’s work in the hands of someone who is not a consummate M&A expert.

7. “Next year, I can sell for more.
Markets can be extremely unpredictable, especially in certain sectors. While timing is important to a sale, it is possible to wait too long and miss out on your best window of opportunity. Working with M&A professionals can help you make better decisions based on reliable data and knowledge, best determining when you should sell.

8. “My business is entirely different.”
It’s not out of the ordinary for a business owner to feel that their company is worth more than it actually is simply because of their emotional connection to it. While most businesses do have their own unique aspects, the reality is that unicorns are rare. You are better off to keep your expectations down to earth, because your business is likely not immune to middle-market norms.

9. “Selling means getting what I want.”
You deserve a deal that delivers on your goals for your future. But remember that a sale is going to have to work for both sides—otherwise you might as well not even consider selling. Many buyers are savvy and recognize when a seller is going to be unreasonable. The best way to fulfill your aspirations is to work with an M&A advisor that knows how to communicate with buyers and negotiate on your behalf while being mindful of how to make the deal enticing for them.

 

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10. “I can wait to sell when I am ready.”
If you are seeking disappointment, this is the attitude to have. Waiting until you feel ready is a major pitfall. There are several factors regarding the economy, your industry, and the state of your business that must be considered into the timing of a sale. You might finally be ready, but you may not get what you could have if you went to market at a more suitable time. If you plan to sell eventually, the smart move is to start preparing your business sooner rather than later.

11. “Things are going great. So why sell now?”
Because when your business is trending upward, you are in a much more advantageous position to sell. You are more likely to see increased competition to buy and higher company valuations, and you will be under less pressure to accept any old offer.

12. “My company is ready to sell.”
Properly preparing a business to be taken to market takes quite a bit of work, time and energy. The level of detail that a business owner puts into compiling finances and business records, increasing marketability, planning for the transition, and crafting an exit strategy, directly impacts the salability of a company. If these matters are not in order, your company is not ready to sell.

13. “I must sell 100 percent of my business.”
There are some buyers that are content to providing capital for a minority ownership stake. This type of deal can give you capital to put back into the business and facilitate growth while you still remain the owner. Working with an M&A advisor can help you identify these buyers.

14. “Negotiating is over once I sign the LOI.”
Signing the letter of intent (LOI) is very important, but negotiations do not end there. There will be comprehensive due diligence leading up to the drafting of the purchase agreement. Negotiations continue until the purchase agreement is signed.

Let’s Talk
If you are considering selling your company and enlisting the help of passionate M&A experts like ours at Benchmark International, we are ready to become your partner in success

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5 Qualities The Best People In The M&A Industry Tend To Have

1) Discretion

Privacy and confidentiality are absolutely essential to any M&A deal. Anyone handling or involved with the sale of a business must be trusted implicitly to maintain discretion around all details of the business and any sensitive materials, including intellectual property.

Discretion is also important to ensuring that both employees and customers do not hear that the company is for sale before the intended timing. This can result in unnecessary panic and the loss of clients and valued talent. Sellers should seek out an M&A advisory team that has an established reputation of trustworthiness in such delicate matters. 

2) Passion

The best people in the M&A industry do not just like what they do—they absolutely love it. When you love what you are doing, it is easy to be truly dedicated and passionate about it. That kind of passion translates into the ability to deliver on the best interests of the seller and arrange a deal that helps them fulfill their aspirations for their business and their future. When your entrusted M&A expert is passionate about delivering life-changing choices for you, it will be evident in their actions and the options that they bring to you.

 

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3) Analytical Thinking

M&A transactions are very complex and require assessment of a great deal of data and financials, knowledge of valuation techniques, the ability to market a company, and many other aspects. Navigating through so many details with precision is crucial to any lucrative transaction. A highly analytical mind is needed in order to process massive amounts of information and develop an accurate and error-free evaluation in every step of the process.

4) Experience-based Vision

In order to sell or grow a company through M&A, there must be a clear understanding of the seller’s industry, the market, the competition, and applicable geographic regions and their related nuances. An effective M&A strategy for maximum success comes with pertinent experience and the ability to define a clear path to creating value and reaching the best possible outcome. A quality M&A partner will have a proven track record with all of these aspects. 

5) Compassion

To be truly successful as an M&A advisor, there should be a compassionate understanding of the client being served. Business owners have worked so hard through their entire lives to build their companies and selling is a very personal, emotional journey. They are going to have fears and doubts that need to be mitigated. Empathy during the process is key to fully understanding a seller’s motivation and goals for their future. It also facilitates better communication and the ability to bring people together. A truly good M&A team will never force a seller into a deal with which they are not 100% comfortable. This requires a willingness to see everything from the seller’s perspective throughout the entire journey.

Contact Us

If you are ready to engage in a deal to sell or grow your company, please reach out to our esteemed experts at Benchmark International. As a passionate and compassionate M&A team, we take a personal stake in formulating the ideal path to achieving your goals and maximizing the value of your business.

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How Long Does It Take To Buy A Company?

How long after I learn of an opportunity will I be expected to submit an offer?

The timing that the offer is first seen does not really play a role in setting any timing expectations. The more precise question might be, “How long will I have to put in an offer before the opportunity is lost?  Some opportunities come to market with a fixed timeline leading to a formal auction process. In this case, you would be notified of that deadline and, if you found the teaser early in the process, you would have plenty of time. This is unless you came across it later on that same timeline. In other cases, and what is more often the case for businesses in the lower-middle markets, no timelines are set. A business may be on the market one day and gone the next. There really is no way to make a prediction.

How long does a business spend planning to go to market?

Some sell-side advisors spend months or even years “grooming” their clients for the market. They attempt to ensure all the low-hanging fruit in terms of improvements to profitability is addressed before you see the business. Benchmark International’s approach is different. Our pre-marketing work focuses on getting to know our client’s business and preparing the information you need to make an informed decision rather than guessing what improvements you would like to see and then encouraging our clients to spend money on projects that you may or may not value highly. Our clients work with us for two to three months on average before coming to market. We would like to shorten that time period but our clients are typically owner-operators and, as they say, “They already have a day job.

After I see a teaser, express interest and sign an NDA, how long should I expect to wait for the next data dump?

The next round of data should come in the form of a Confidential Information Memorandum, also called a private placement memo, a CIM, a PPM, or a “book.” The process of getting your NDA to a client and obtaining the client’s approval to share this information should take about three business days.

After receiving a Confidential Information Memorandum, what is my expected response time for expressing further interest or asking additional questions?

There is no set rule here. Buyers are typically looking at multiple opportunities, comparing one to the other and then prioritizing them. The sooner you reply, the lesser the chance the company has gone off the market and the keener your interest will appear to the seller, so sooner is better than later. Aggressive buyers typically reach back out to us within three business days of sending the CIM and, if we have not heard back within one week, we follow up.

 

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How long should I have to wait to have a call or meeting with an owner?

Setting a date for an initial call or meeting should be almost instantaneous. When that exchange actually happens will depend on the parties’ schedules. Phone calls are typically held within a week of the buyer’s request. Timing face-to-face meetings depends on the distance between the parties, the time of year, and other factors, but is usually accommodated within two weeks of the request.

How long does a first call typically take?

These are generally scheduled for one hour.

How long does a first visit typically take?

This will depend on how much information has been shared prior to the meeting and where the buyer and seller are in the process at the time that the initial meeting occurs. These meetings tend to be much longer than calls, up to four hours, and often involve going to a meal together.

How long after speaking with or visiting with the seller do I have to put in an offer?

Unless a formal process has been put in place and announced, there are no rules here. As mentioned above, companies go off the market and quicker responses convey a stronger interest. It is more important that you have the right amount of information before submitting an offer. You need to be comfortable standing behind the offer, and the seller needs to be comfortable that you understand the business, otherwise the offer isn’t worth the paper its printed on. Unless there is a formal deadline, offers should not be rushed. Take as much time as you need and put forth a detailed offer that hits as many of the seller’s points of interest as possible.

How long does it take to get an offer (or letter of intent) signed?

Absent a formal deadline, we typically see letters of intent (or “LOIs”) go back and forth for about two weeks. Sellers rarely accept a first offer and, even if the terms were acceptable, there are always questions to be addressed and additional details to be added at the request of the seller. The seller should respond to your initial offer in a matter of days, perhaps three to five, but you should budget two to three weeks to get the details ironed out.

How long does it take from signing the LOI to closing?

This is almost always in the buyer’s hands. Working with a well-represented seller can help speed up the process. At Benchmark International for example, we run online data rooms for all of our clients, we hold weekly calls, we shepherd the diligence requests back and forth ensuing nothing falls through the cracks, and we push the seller for timely responses when necessary. As the buyer typically prepares the first draft of the definitive agreements, whether you decide to complete diligence first and then have the attorneys start drafting, or if you do the two simultaneously will be the single largest factor in determining timing. How much due diligence you have performed and how well you control your due-diligence providers and attorney will be the second most significant factor. All that said, we see parties aiming to close deals within 90 days of signing the LOI, though that timing sometimes slips.

I am using debt for the acquisition. What impact will my lender have on timing?

If you handle it well, run your offer by the lender before providing it to the seller, and are not asking them to do something they are uncomfortable with; they should not add time. Unfortunately, many buyers are unable to meet these expectations and the lender often becomes the long pole in the tent in terms of timing. A buyer’s inability to get the debt financing lined up can stretch on for months. These delays are what most often kill deals with our clients. If you have any concerns about timing, the most important step you should take is to get your debt financing relationship(s) in line early in the process— perhaps before you even start looking at acquisition targets—and keep your potential debt provider(s) in the loop as the process progresses, constantly obtaining reassurances from them that the deal you are working on is “fundable.”

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M&A In The Global Insurance Industry

Mergers and acquisitions in the global insurance industry carry their share of unique challenges. There is always the potential for increased regulation, and ever-changing technologies and infrastructures can make it expensive and difficult for companies to keep pace. When it comes to cross-border M&A, cultural integration is often overlooked. These factors make the world of M&A in the insurance sector complicated to navigate.

Key Drivers of M&A in the Insurance Industry

M&A activity in the global insurance sector becomes more dynamic as a result of several contributing factors and strategic objectives.

  • Companies acknowledge the need for economies of scale and seek to expand by moving into global markets.
  • Lower policy rates push industry players to consolidate to maintain profitability and find ways to remain competitive by uniting two synergistic companies and gain more value through scale efficiencies.
  • Stagnant domestic markets result in cross-border targets.
  • Organic growth cannot be relied upon to meet company goals.
  • Heightened interest comes from a broad range of backers, from hedge funds to international investors.
  • Low profitability results in low investment yields.
  • Insurers need ways to spend large cash reserves.
  • They need to integrate new technologies (such as mobile apps and big data) to revitalize flat business models, improve internal capabilities, reach customers, or gain market insights.

 

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Due Diligence

As with all M&A transactions, meticulous due diligence in the insurance industry is critical to a successful deal. While many due diligence topics for an insurance company overlap with that of all types of M&A transactions (property, tax records, employee issues, etc.), the insurance industry is subject to some unique scrutiny, such as:

  • Regulatory issues (licensing, permitted practices, regulatory filings, and interactions with government agencies)
  • Assessment and adequacy of reserves
  • Structure of investment portfolio
  • Underwriting and claims administration
  • Market conduct and producers
  • Reinsurance collectability
  • Intercompany agreements
  • Data security
  • Compliance with privacy laws

Crafting of the purchase agreement in insurance M&A transactions is also an important part of the process. If done correctly, it will address both the unique nature of insurance companies and the regulatory environment in which they operate.

Insurance-Specific Indemnities

Indemnification provisions within insurance M&A agreements are similar to that of other industries, with exception of a few differences. An M&A transaction can call for unlimited indemnity protection for specific circumstances in which the buyer asks the seller to assume the risk. Common areas for specific indemnities include:

  • Policyholder claims for extra-contractual obligations or claims that exceed policy limits
  • Litigation specific to the insurance industry (i.e., class action policyholder lawsuits or regulatory actions for improper business conduct)

Cultural Integration in M&A

Global insurance executives have reported that overcoming cultural and organizational differences following a deal has been a significant challenge.

In order for cross-border M&A to be successful, leaders must look beyond financial motivations and consider how cultural integration can result in improved synergy and innovation. This can happen in several ways:

  • The acquirer can completely assimilate the culture of the target company.
  • The acquired company can maintain its own identity and independence.
  • The two can meld, creating an entirely new culture.

The route a company chooses to take depends on the size of the two companies, the post-deal organizational structure, and the advantages generated by different cultural traits.

When companies carefully take culture into account, they can greatly benefit from the positive outcomes and lower the risk of failure in M&A. A cultural assessment should be conducted alongside due diligence far before the deal nears completion. This assessment should study the geographic locations, management styles, work habits, and attitudes of both companies. Successfully uniting employees from diverse backgrounds calls for a customized process that should not be rushed and includes clear and honest communication.

 

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Steps for Success

When insurance companies are considering M&A for financial growth, geographic expansion, and bolstered competitiveness, there are certain steps that leadership should take to find the right type of deal and ensure a positive outcome.

  • Assess the future of the industry, the trajectory of the business, and where the two align.
  • Plan for different scenarios that could trigger economic changes in the next one to two years.
  • Craft an M&A strategy that aligns with ownership’s goals.
  • Choose target companies consistent with leadership’s overall strategy and long-term goals. What seems like a good idea today may not make sense for five to ten years down the road.
  • Remain cognizant of the changing tax and regulatory environments.
  • Evaluate in-house corporate development and overall integration abilities.

Contact Us

If you are ready to grow your company, sell your company, find a new investment opportunity, or plan your exit strategy for retirement, give us a call at Benchmark International. Our esteemed M&A advisors will craft strategies that deliver outstanding results for your plans for the future. 

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Do You Really Want a Management Presentation?

These are customary in bulge bracket deals. And the middle markets are growing more sophisticated to become similar to larger markets. However, not every tool used in larger markets warrants transplanting. Benchmark International clients rarely offer management presentations and we have no plan to change that practice. Here are reasons why we take that view, and why you should welcome the decision as a buyer.

  • Management teams at bulge bracket companies have seen management presentations. They know what to expect and what is expected of them. Yet, this is rarely the case in the middle markets. As a result, presentations on these smaller deals require significantly more preparation time, tend to be derailed, and rarely make it to the end of the anticipated content.
  • There is simply not enough to talk about. Middle-market businesses often have single lines of business and single locations. They tend to lack vertical integration, complex supply lines, and paths to market. They do not typically use complex financial engineering that must be understood by buyers. And they simply do not have a slew of issues that require a structured introduction.
  • Many middle-market businesses are owner-operated businesses and their owners are driven by intuition, not data. For that reason, they do not collect much data and, accordingly, there is very little for management to analyze and summarize in a presentation.
  • The management teams are smaller so the number of team members brought “into the know” when a management presentation is given is typically very limited—sometimes even limited to one person, the owner.
  • These management teams do not have the bandwidth to set aside the time required to develop a quality presentation. Many of these businesses are selling precisely because the owners have not invested in overhead. Spending a few days to prepare for management presentations means key employees are taking their eye off the ball and no one is backfilling.
  • Deals are done in the middle markets for a far wider variety of reasons than you see in larger markets. Because buyers are coming from so many different angles (and they themselves have a more diverse range of M&A sophistication), developing a standard presentation poses unique difficulties and results in the audience sitting through a higher percentage of unproductive dialogue.

 

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Understanding these realities, as well as your interest in learning as much about our clients as possible and doing so in the most efficient manner, Benchmark International takes the following steps to compensate for the absence of management presentations.

  • We frontload much of the material that would be in the presentation into the Confidential Information Memorandum (CIM). We believe our CIMs are far more detailed than what you typically see for businesses of similar size and this is a big reason why.
  • We set up online data rooms early in the process. We strive to get as much raw data into your hands as possible through this approach. This is not a feasible approach for larger businesses that have too much data for you to sort through (a reason why they summarize their voluminous data in management presentations). But given how manageable the amount of data is for most middle-market companies, it makes sense for you to get to the unvarnished raw data sooner rather than later.
  • We encourage early and frequent informal conversations with our seller clients. In cases where the CIM and the raw data do not cover everything, these less structured conversations allow you to get straight to the point and fill in the remaining gaps.

With all this in mind, we hope you will agree that our approach is actually the most efficient for you. If not, we invite you to comment below and we will reconsider our position as we are constantly attempting to give buyers the best possible experience.

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The Biggest Trends In M&A This Year

As we approach the end of 2019, it’s a great time to take a look back at trends in mergers and acquisitions activity that emerged around the world throughout the year. Overall, there was an increase in the number of reported M&A transactions and total deal value worldwide.

Four industries experienced significant increases in deal value from the first half of 2018:

  • Industrial (22.6%)
  • Energy and power (11.2%)
  • Health care (6.1%)
  • High tech (2.8%)

New M&A Motivation

A growing trend that is permeating all industries is the deal activity that is occurring as a result of companies needing to integrate technology into their offerings, altering the business landscape. Companies are being compelled to work with a much wider scope of partners to accomplish their tech-enabled goals. For this reason, we are seeing more non-traditional partnerships with different depths of cross-industry integration. These nontraditional deals include joint ventures and alliances, corporate venture capital investments, and the purchase of minority stakes. An example of these types of alliances in 2019 include Uber Advanced Technologies’ (their self-driving car unit) raising of $1 billion in funds from Toyota, Softbank’s Vision Fund and auto components manufacturer Denso.

First Quarter

During the first quarter of 2019, we saw relatively few cross-border megadeals. This could be because of fluctuating geopolitical factors such as increased trade tension between the United States and China. Amid this year’s early cross-border megadeals was the acquisition of Canadian company Goldcorp by Newmont Mining Corporation, a U.S. company. The deal was a stock-for-stock transaction valued at $10 billion.

In the middle market, M&A activity remained robust through the first quarter. Transaction volume was up slightly over the previous year’s period. Private equity funding and a high level of strategic buyer activity continued to drive deals significantly. Foreign buyer activity increased to account for almost 16% of middle-market deals. 

 

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Second Quarter

Megadeals heated up in the second quarter of 2019, especially in North America. Of the 21 megadeals announced in the first half of 2019, the highest in value included:

  • AbbVie’s $62 billion buyout of Allergan
  • Fidelity National Information Services $35 billion purchase of Worldpay
  • Saudi Aramco’s $69 billion majority-stake purchase of petrochemicals group Sabic
  • Bristol-Myers Squibb’s $74 billion acquisition of rival Celgene
  • The $121 billion merger of United Technologies and Raytheon

The second quarter also saw an increase in deal volume in the middle market, up from the same period in 2018. Foreign buyer activity accounted for almost 14% of middle-market deals. 

Third Quarter

By the third quarter, global M&A activity dropped 16% year-on-year to $729 billion, the lowest quarterly volume since 2016.

In Europe, M&A activity reached $249 billion, up more than 45% over the same third-quarter time period in 2018. With a 6.4% share of global M&A and $177 billion worth of transactions, Britain was Europe’s biggest M&A market in 2019. This is due in part to the uncertainty regarding Brexit turning companies into bargain acquisition targets. Additionally, Ireland showed strong M&A activity through the first half of 2019 with deal value up 24% compared with the previous year, while later slightly slowing amid economic uncertainty.

Third-quarter megadeals in the U.S. included:

  • The $24.6 billion merger of drug giant Pfizer’s off-patent branded drugs business with Mylan NV
  • Media companies CBS Corp. and Viacom Inc.’s $20 billion merger in an all-stock deal

In the middle market, global third-quarter deals closed totaled $600 billion, remaining on pace with the first three quarters of 2018. The largest of these deals included Norwegian company Equinor ASA’s $965 million acquisition of U.S.-based Caesar Tonga Oil Field.

 

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High Tech M&A

The technology sector continued to be ripe for M&A transactions in 2019. However, we have witnessed a softening in tech M&A activity in the second half of the year. This could be due in part to enhanced scrutiny that tech companies are facing around issues of consumer privacy, regulations, and misuse of market power. Such scrutiny can be the source of some apprehension to invest in these types of businesses.

Among the notable mega tech deals of 2019 were:

  • Apple’s $1 billion purchase of Intel’s modem business
  • Google’s $2.6 billion acquisition of Looker
  • Nvidia’s $7 billion acquisition of Mellanox
  • Salesforce’s $15.7 billion acquisition of Tableau
  • Uber’s $31 billion purchase of their rival Careem

In the first half of 2019, the largest North American middle-market technology deals (each valued at $500 million) included:

  • JPMorgan’s acquisition of InstaMed
  • Envestnet, Inc.’s acquisition of PIEtech, Inc.
  • Kohlberg Kravis Roberts & Co. L.P. takeover of OneStream Software LLC

Globally, the largest middle-market technology deals included:

  • Canada Pension Plan Investment Board and Insight Venture Partners LLC’s acquisition of Switzerland’s Veeam Software AG
  • GEMS Education’s purchase of Ma’arif for Education & Training
  • TPG Capital/Insight Venture Partners’ buyout of Kaseya Limited

Is a Deal in Your Future?

If you feel the time is right to sell or grow your business, our team of M&A advisors at Benchmark International would love to hear from you. We look forward to partnering in your success and making extraordinary things happen for you and your company.

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Common Pitfalls Owners Face When Selling A Business

Not Knowing the Value of Your Business

As important as it is to know the value of your own business, the reality is that 65 percent of business owners do not know their company worth. Valuation is a crucial step in taking your business to market. Simply put, you cannot negotiate the best selling price for your company if you do not know what it is worth.

Selling at the Wrong Time

Market timing is important to a business acquisition because it can directly affect a company’s value based on competition, demand and economic factors. You do not want to rush to sell, but you also do not want to wait too long. Finding this delicate balance is crucial to maximizing your company value prior to your exit. Professional M&A experts can assist you in properly determining the right time for you to sell your business because they have a strong understanding of the markets and have exclusive access to opportunities that can play into the timing.

Lack of Preparation
The most frequent mistake made by business owners in sale is not properly preparing for it. Before taking a company to market, there are several factors that must be addressed. These include detailed documentation regarding finances and profitability, contracts, personnel, exit planning, and other issues that will affect both value and salability. Proper preparation can take anywhere from months to years, depending on the size and complexity of your business. It is smart to seek the guidance of a professional M&A advisor to help you with these details to ensure that nothing is overlooked. 

 

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Misunderstanding Future Cash Flow

As a business owner, it is easy to focus on liquidity as a result of a deal and fail to consider how timing and proceeds will be factored into your retirement plan and how it conforms to your standard of living.

Studies show that 70 percent of business owners do not know what after-tax income they need to support their lifestyle. 

You need to have a clear and detailed understanding of your risk and liquidity profile to help you discern if and when you should sell your business. This includes the calculation of your net worth by comparing your financial assets with your financial liabilities, sources of cash flow, and income tax liability.

Not Having an Exit Plan

A staggering 85 percent of business owners have no exit strategy—something that every business owner absolutely should have in place. 

Exit planning is extremely important for several reasons. A solid exit plan will help you outline your goals for the future of your business as well as your financial retirement goals. It also helps you determine a timeframe for when you want to sell, can enhance the value of the company, gives you a blueprint for success, and protects you in the event of unforeseen circumstances.

Misrepresentation
Of course you want to portray your company in the best light, but you must be careful to not misrepresent it to prospective buyers. Avoid the urge to inflate numbers, exaggerate projections or try to hide issues. Providing inaccurate information can blow a sale and erode your reputation with other potential buyers, derailing any possibility of a deal. Your honesty and transparency will also earn the trust of investors, increasing the likelihood of a sale.

 

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Breaking Confidentiality
When selling a business, even if only considering it, it is important to carefully handle who knows what—and when. It will not be a good situation if your staff hears about the sale from anyone other than you or your leadership team and they descend into a panic. You also do not want your customers or clients finding out and jumping ship. Another reason to be careful with confidentiality is because it can affect the sale if a buyer feels that you cannot be trusted or that they are getting damaged goods.

Not Addressing the Transition
Selling a business is a major undertaking and it is easy to get so caught up in the details of the sale that you overlook the transition process that will need to happen after the deal is closed. You will need to work with the acquirer to determine if you need to stay on with the company for a short time to help move the transition along smoothly, or if it will be an immediate exit. There are also other factors that will play into the transition, including how it will affect the management team and the staff. It is important to make plans for the transition completely clear to avoid confusion, frustration and fear of the unknown.  

Is it Time to Sell?

Enlist the expertise of the M&A advisors at Benchmark International as your partners in achieving the highest standards for the sale of your company. Our team will make sure you avoid pitfalls that you are not even aware may exist, and we are dedicated to arranging the very best deal with your goals and best interests as our top priority every step of the way.

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Benchmark International has Successfully Facilitated the Transaction Between Regency Cleaning Services Limited and Ecocleen Services Limited

Benchmark International has advised on the transaction between contract cleaning firm, Regency Cleaning Services, and national commercial cleaning contractor, Ecocleen Services.

Regency operates throughout Berkshire, Buckinghamshire and Oxfordshire, supporting more than 100 clients. The company’s team of 500 staff are responsible for delivering cleaning, waste management, porterage and maintenance services to a variety of private and public sector sites such as schools, nurseries, offices and car showrooms.

Ecocleen has more than 25 years’ experience of developing and implementing tailored commercial cleaning solutions. The franchise handles contracts of all sizes on behalf of more than 600 customers, servicing both single and multi-site operations on a local, regional and national basis.

Ready to explore your exit and growth options?

Following the acquisition, Regency’s Managing Director, Darran Penny, will join Ecocleen as Commercial Director.

The successful takeover will enable Ecocleen to increase its presence within key sectors such as education and motor retail, while expanding its nationwide franchise network. Regency customers and staff also benefit with Ecocleen bringing its technological innovations and commitment to the environment to the combined operation.

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M&A And The Chemical And Plastics Manufacturing Industry

The chemical manufacturing industry converts raw materials such as gasses and oils into chemicals such as ethylene, propylene, methanol, benzene, chlorine, and paraxylene. These chemicals are feedstocks for value chains that produce a wide array of intermediates, plastics, and performance materials that are used to create more than 70,000 registered productsaround the world. It is an extremely diverse and complicated industry. Because many of the industry’s products are intermediates, the customers of chemical companies are often other chemical companies.

M&A Strategies

Among the many factors that influence multi-billion dollar investment decisions include energy market trends, global economic growth, and regional trade dynamics. Investors seek sustainable competitive advantages regarding the costs of energy and feedstock, technology and scale, proximity to markets, and degree of integration.

Mergers and acquisitions have been a long-time tactic used among chemical companies to create growth, change strategic course, and consolidate segments. In an industry that has seen major expansion, certain factors can complicate M&A. This includes the substantial size of some transactions and merger-of-equals deals that are more complex to carry out.

Key drivers of M&A in the chemical manufacturing industry include:

  • The pace of organic sales growthin sub-segments
  • Consolidation driven by a need for innovation and fewer opportunities to differentiate from competitors in high-value and specialty-chemical areas
  • The state of capital-markets returns and a campaign for higher valuations
  • An abundance of capital and private equity interest and access to low-cost finance

 

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Digitization & Optimization

Technology continues to transform all industries in the modern world, and the chemical manufacturing industry is no different. Data management through advanced analytics is enabling plant optimization across sites, improved supply chains, and infrastructure synergies. Digital solutions reduce downtime and costs as a result of maintenance and repairs. Sensors monitor plant and warehousing conditions, improving logistics. Also, a vast amount of field operator workload can be transferred to automation and robotics, allocating people resources elsewhere in the business and creating more opportunities for up-skilling. Implementation of these technologies results in revenue improvements.

The Circular Economy of Plastic Waste Recycling

Plastics production accounts for more than one third of the chemical industry’s manufacturing activities. But only a small percentage of these plastics are being recycled, resulting in resources that are lost forever into landfills. Global plastics waste volumes are expected to reach 460 million tons per year by 2030. Public outcry for sustainability is rising and raw material supplies are growing tighter, forcing the chemical industry to adapt on this issue. New plastic recycling methods offer new opportunities for value-creating growth for petrochemicals companies. Instead of focusing on the problem that plastic waste creates, companies are starting to recognize the billion-dollar profit pool it represents through new types of businesses, resulting in an entirely new landscape for M&A activity.

Activist Investors

Additionally, activist investors are playing a larger part in the chemicals sector. Activist investors attempt to create change within a company by purchasing a large number of shares or board seats. These players are emerging influencers of M&A activity and they have an ever-increasing role in the chemical industry through restructuring initiatives. This creates new challenges for industry executives because long-term strategic planning is not a typical priority of activist investors. Although activist investors are capable of delivering solutions that add value, they usually are more interested in shorter-term, higher valuations and results. This often results in cost-cutting measures, shareholder buybacks, and the splitting off of company divisions. 

 

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Successful Chemical Industry M&A

Deals that employ proven M&A best practices will yield higher total returns to shareholders. Capturing the full value potential of a deal requires specific industry knowledge and expertise. To craft a successful deal in the chemical sector, sellers should enlist the advice and methodologies of dedicated M&A experts such as those at Benchmark International. They should also:

  • Monitor the field to identify potential opportunities
  • Review their portfolios to ensure current assets fit their core business
  • Look for gaps that may need to be filled for fast action when opportunities arise
  • Prepare non-core businesses in order to maximize value from a deal

Contact Us

Are you thinking about selling your business? Set up a time to quickly chat with one of our global M&A specialists to discuss your options and opportunities. Our expertise spans several industries and continents and our talented people are dedicated to achieving your personal objectives. 

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How Do I, as a Potential First-time Buyer, Value a Business?

For an academic, this may be an easy answer: prepare a discounted cash flow, look at comparable transaction numbers, or use comparable trading prices of public companies with appropriate discounts. But for an individual on the verge of potentially making their first acquisition, that is all far from useful advice.

In reality, the answers are more complex for an individual buyer. While these academic procedures are well defined in textbooks and on various websites and can certainly be of assistance, our experience indicates there are a few more meaningful yardsticks for assessing the value you might offer on a lower-middle market or middle-market business. These include the following questions:

What will I do with the business? As the academic methods of valuation are all either based on historical performance or rely heavily on historical performance to paint a picture of future cash flows (and thus value), you as a new owner are not likely to run any acquired business the way the selling owners have done it. If you cannot squeeze more growth, margins, and/or cash flow out of the business than the current owners, the two of you are not likely to (and in fact should not) be able to agree on a value for the business. If you cannot bring something to the table that is going to make the business worth more in your hands than it is in their hands, your valuation—however derived—should be lower than their valuation. In other words, every business has a different value in the hands of different owners. You should place whatever unique competitive advantage you would infuse into the business into your valuation.

 

Ready to explore your exit and growth options?

 

How do I account for the risk of taking over a business? Another mantra of the academic community holds that the riskier the investment, the higher the required return is on that investment. It is typically fairly easy to account for the risk inherent in any business you may be looking to acquire, but the actual act of acquiring itself carries its own risks. Your valuation must take into account these risks as well. Unlike the inherent risks in any ongoing business, these risks tend to be short-term in nature. For example, the changes you may make in culture may cause personnel issues and the handoff of key customer and supplier relationships may result in some turbulence. Understanding these risks and structuring your transaction correctly can mitigate these risks significantly but both the risks and the desired structuring will play a factor in your valuation. 

How much can I afford? While you may be able to calculate a valuation on paper, if you lack the wherewithal to come up with the required funding, the business actually has no value to you. It is actually quite surprising how little “cash down” is necessary to purchase a business in today’s markets. The high valuations that abound only add to the concern here. However, to take one example in the United States, Small Business Administration loan guarantees are often used to cover up to 80% of the purchase price of a business. The SBA and the lending institution will typically allow another 10% to be “seller financed” meaning that the buyer can pay that amount out later, using the cash flow generated by the business itself to pay up to 90% of the purchase price. While this is an extreme example of leverage, we have seen this and similar structures work on many occasions to the mutual benefit of the seller and buyer.

How do I structure the deal at the right value but avoid a cash crunch?  “Cash is king,” say business school professors. And in this case they are speaking both in academic and practical terms. Your valuation must take into account the cash flow needs of both the business and yourself. The fastest car in the world can’t win a race if it runs out of gas. Financial statements, income, and EBITDA are important, but cash flow is the company’s (and your family’s) true fuel. Missing a mortgage payment at home or a payroll in the office can be a one-time event that is catastrophic. But again, thanks to the ability to structure an acquisition, the struggle between strong cash flow and valuation is not a zero sum game. With proper structure, an attractive offer need not lead you to be overexposed.

Interestingly, all these valuation issues point in one direction: valuation cannot be thought of in a vacuum. If a company is to be bought with 100% cash at close (which sellers love) then the right valuation for you is probably lower than would be the case if you were able to work in some fair structural enhancements to your offer. Unfortunately, most sellers are not up to speed on all the ins and outs of various available structuring options. When looking for a company to acquire, it therefore makes sense to look at represented companies like those in Benchmark International’s portfolios. While we will always represent and work solely for the seller, we have been hired by that seller to help get a deal done. To achieve that objective, we bring our structuring expertise to bear on each and every transaction. If there is a deal to be had but a gap in valuation, you can count on our involvement to find ways to bridge that gap and get that business into your hands with the right valuation for both you and our client.

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What Drives The Need For Companies To Consider Mergers And Acquisitions

Mergers and acquisitions (M&A) are an ideal pathway to stimulating positive results for businesses such as creating growth, gaining a competitive advantage, boosting market share, or improving supply chains via the consolidation of companies.

Growth Creation

A merger or acquisition is an extremely effective method for growing a company’s market share or creating stability in the market. When one business either buys out or combines with another business, it can result in increased productivity, sales and brand loyalty, as well as improved cost synergy. Having a larger share of the market usually means a company can raise their prices and generate more profits. Growth can be created by access to emerging markets, new geographies, new technologies and the acquisition of intellectual property.

Competitive Edge

In many cases, M&A transactions enable acquirers to grow their market share by eliminating the competition through the purchase of a competing company. In today’s technologically savvy world, the aim to improve tech capabilities and drive innovation is a huge driver of consolidation.

 

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Acquisition of Talent

In many industries, there is an ongoing shortage of talent. These shortages can obstruct a company’s ability to grow and hamper its ability to serve existing customers. A business can address their pressing need for talent by purchasing another company that has the type and amount of talent that can address their needs. It can also be a faster route to getting the needed talent versus trying to develop it organically.

Economies of Scale

When two companies combine forces to create synergy, the pooling of their strengths tends to bolster overall performance and lower operating costs. This can be especially beneficial in industries that have high fixed costs and require large amounts of capital such as airlines, auto manufacturers, and pharmaceutical companies.

Supply Chain Power

When a business acquires one of its suppliers or distributors, an entire layer of costs can be eliminated. Buying out a supplier is known as a vertical merger. It allows a company to save money on the margins the supplier was adding to its costs. Buying out a distributor enables a business to ship products at a lower cost. These changes can translate to lower costs for consumers, which can increase sales.

Another benefit of a vertical merger is that it gives the acquiring company more control over supply, eliminating the risk of price gouging by suppliers. Depending on the type of business, a vertical merger can also result in improved technologies or expertise.

 

Feel like it's a good time to sell?

 

Increased R&D

When a company acquires another company, they can often make more investment into the areas research and development. Studies show that M&A activity strongly increases the incentive of companies to conduct R&D. This is less so for large firms, as they may buy smaller firms to gain their technology.

Social or Political Influence

In certain industries, there can be a motive to increase social or political influence by gaining a greater stake and, therefore, more of a voice. This can pertain to media companies, newspapers and the like. An M&A transaction can also change public perception of a company. If a company has struggled with negative publicity, an acquisition by a company with a stronger, more positive image can alter public perception of the business.

Bankruptcy Solution

An M&A strategy can be employed to prevent a firm going into bankruptcy and being liquidated, often referred to as distressed M&A. A thriving company may wish to acquire a struggling company with the objective of turning it around and making it profitable. These transactions can be particularly risky, as well as legally and financially complicated.

Research indicates that M&A in bankruptcy is more likely at times when the cost of financing a stand-alone reorganization is expensive relative to the cost of selling the company’s assets to a buyer with internally generated funds or lower capital costs.

Is an M&A Strategy Right for You?

If you are considering selling or growing your company, our M&A experts at Benchmark International would love to hear from you. Our globally connected team is dedicated to helping business owners maximize the value of their companies and complete deals that go above and beyond expectations. Setting you on the path to the future of your dreams is what drives us to do great things.

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Benchmark International Successfully Facilitated a Transaction Between Pioneer Realty Capital, LLC and Luxon Realty Services

Benchmark International has successfully facilitated a transaction between Pioneer Realty Capital, LLC and Luxon Realty Services. Pioneer Realty Capital is an Arlington, Texas-based business that provides underwriting services along with debt and equity brokerage, primarily for the development of commercial real estate.

Luxon Realty Services is an Austin-based real estate brokerage, property management, and advisory firm founded in 2006. The firm actively manages real estate assets and provides consulting and advisory services nationwide. The principals of the firm have over 20 years experience as a real estate professional, and has key relationships with national capital providers with whom they work hand-in-hand with to identify and execute on capital market opportunities with demonstrable growth characteristics.

Ready to explore your exit and growth options?

J.P. Santos, Associate Director at Benchmark International shared, “Benchmark International’s Austin team enjoyed working with Charles Williams and the Pioneer Realty Capital team. We were able to work towards coming to terms that were ideal for Charles’ goals for his firm. This deal shows Benchmark’s dynamic market position and our understanding of the wants and needs of our clients and how to formulate a strategy that helps accomplish our clients' goals from the transaction. Charles was looking for a partner that could provide him a broader array of products and services to offer his existing clients as well as a means to obtain a new business. The team did a formidable job at negotiating a deal that would fit this objective and allow Charles several options regarding the long-term direction of Pioneer Realty Capital. Charles was a true professional to work with, and we are excited about what the future holds for Pioneer Realty Capital.”

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How Proper Exit Planning Benefits Both Seller and Buyer

Value For Sellers

Proper exit planning is critical for any business owner that intends to sell their company. When you are going to sell, you must know the amount of money that you will need to have on hand in order to make a comfortable exit, which involves assessing your cost of living. You may need to formulate a plan to decrease your annual cost of living, for example, by downsizing your living arrangements or selling unnecessary luxuries such as cars, boats, or vacation properties.

Selling a company is a complicated venture. There are complex considerations from financial, legal, tax, estate, operational, personal, family, and legacy perspectives. Having professional assistance from a reputable M&A advisor can help you navigate these matters and ensure that nothing is overlooked. They can also help to make the process less stressful and give you peace of mind that your exit plan is a sound one. They will also help you maximize the value of your business in a sale and prevent you from making costly mistakes.

 

Ready to explore your exit and growth options?

 

Also, once you know your number, you can take steps to increase the profitability of the business and make it more attractive. The more marketable your company is, the more prospective buyers you will entice, and they will be higher quality buyers. Another reason that having a solid exit strategy in place will make your company more appealing to buyers is because it shows them that you are serious and have been smart about how you run your business.

There are several options for your exit strategy. You can sell to an outside buyer, sell to an inside buyer, do a partial sale, pass the company onto family, or liquidate the business altogether or over time. Astute exit planning can help you figure out which course of action is right for you.   

Value For Buyers

Exit planning simply primes a business for easier transfer in ownership. An acquirer wants to know what they are getting into regarding how the business will operate after the sale.

  • How involved will they need to be?
  • How much work will be required on their part to grow the business?
  • Will existing customers and clients remain in the relationship?
  • What is the state of the management team and will it remain in place?

A buyer is going to prefer to take on a business that will continue to run seamlessly through and after the transaction.

 

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Smart for Everyone

When done properly, exit planning gives the seller a clear plan for their retirement and mitigates risk for the buyer so that both parties can feel good about closing a deal. The entire process is about setting concrete goals and following a timeline to keep your exit plan on track so that you can exit on your own terms. Failure to have this plan in place can result in disastrous circumstances, such as:

  • Being forced to sell at an unfavorable time by unexpected events
  • Having your business undervalued and leaving money on the table in a fire sale
  • Wasting time and money on transactions that fail
  • Failing to fulfill your retirement goals
  • Burdening family with matters they are unprepared for and undercutting your legacy
  • Paying more taxes than necessary

Is it Time to Plan Your Exit?

Even if you do not foresee retirement in the near future, it is never too soon to have a plan for the future. It is also extremely prudent and can protect you and your company from unforeseen circumstances. Take the time to do it right. Contact our experts at Benchmark International and begin the conversation about selling your company and your exit plan options. We will work at your pace to achieve your goals and lay out a blueprint for a future that you can feel wonderful about.  

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Benchmark International is Returning to Sponsor Real Deals

Benchmark International is pleased to announce that it will be returning to sponsor the Real Deals Mid-Market event taking place on 24th January 2020 at the London Marriott Hotel, Regents Park.

In its eleventh year, Real Deals is a key event for private equity in the UK with hundreds of the most recognisable names in private equity attending, providing Benchmark International with a unique opportunity to showcase the opportunities it currently represents.

As well as networking opportunities, the event also includes panel discussions, on-stage interviews and exclusive case studies, with the event examining the futureproofing of the whole of the investment cycle to ensure the continuous success of a dynamic industry.

Do you want to be featured and showcased in front of leading dealmakers? Naturally, we present only a select number of companies for each event, so we would encourage you to contact us now to ensure your business is included.

Schedule A Call

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Benchmark International has Successfully Facilitated the Transaction Between Euro Business Solutions and Cloudstream Technology

Benchmark International is pleased to announce the transaction between Euro Business Solutions and Cloudstream Technology.

Do you have an exit or growth strategy in place?

Euro Business Solutions is an IT support specialist established in 1997. It provides consultancy services and hardware and software sales to corporate clients. Services include various external managed services, consultancy work, written recommendations, data recovery and recycling.

Cloudstream, a division of the TechStream Group, is an innovative and diverse talent solutions provider, dedicated to providing advanced technology and transformation skills across consulting, start-up or enterprise environments. This represents a strategic acquisition for Cloudstream, as it allows the company to bolt-on Euro Business Solutions’ services to its own.

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Why Cultural Synergy Is Imperative When Selling Your Business

When selling a company, of course the numbers are important. You want to obtain the most value in a sale and it can be easy to get caught up in revenue potential and expansion goals. But if you are truly concerned about the completion of a deal and the long-term success of the business, cultural fit between the converging companies is something that should never be underestimated or overlooked. 

M&A Culture Shock

The culture affects everyone in the company, from the CEO and management down to every last employee. Values matter, communication is critical, morale is extremely influential when it comes to productivity, and these topics become even more important in cross-border transactions. Synergy in this respect can directly impact the bottom line of the business. Culture clash can utterly shatter the prospects of the merger or acquisition’s success.Research shows that complementary competencies contribute significantly to the enhanced overall M&A performance.This is why cultural integration must be considered before a deal is done, and why many savvy acquirers have formulas in place to address the fusion of two organizations’ cultures.

 

Ready to explore your exit and growth options?

 

What Defines Company Culture?

The culture of a company is typically outlined by certain key factors:

  • How the company defines essential capabilities and competitive strategies
  • The normal behaviors of leadership and staff members
  • The business’s operating model including structure, accountability, supervisory systems, and day-to-day operation guidelines
  • National and regional customs, observances, language barriers, dress codes, work ethics and ideologies  

Talent Retention is Key

Talent is a major factor in the acquisition of a company, as is the retention of that talent. Cultural fit has proven to be a critical factor in the retaining key talent after a sale due to issues related to autonomy and disruption—all things that should be negotiated upon a transaction. Research demonstrates that giving decision-making autonomy to the acquired business can improve integration and overall acquisition performance. Routines, relationships, and processes that are already embedded in a target company’s culture need to be understood by a buyer to avoid potential disruptions and ensure performance that is conducive to success. This can be especially important in the acquisition of high-tech companies.

Studies have indicated that if national and corporate cultural differences are not properly addressed during pre- and post-acquisition integration, it can have disastrous consequences on the overall success of the M&A transaction.

How Cultural Differences Can Actually Help

Cultural differences in cross-border transactions are not always a bad thing. It has been demonstrated that these differences can actually enhance the competitive advantage of the combined firms when cultural integration is properly handled. These benefits include:

  • Access to distinct and valuable capabilities that may be rooted in the different cultural environment
  • Development of deeper knowledge structures
  • Lessened inactivity within the organization
  • Excellent source of learning, innovation and value creation
  • Greater manager involvement in social and cultural factors that are sometimes overlooked in domestic M&As 

“Cultural learning” can change negative stereotypes, create positive attitudes, and improve communication between the two companies. For this process to work, there should be a controlled dispersion of information between parties that enables them to obtain accurate information about each other in a constructive way. This eliminates misconceptions and shines a light on actual differences that can be seen as the best aspects of both cultures.

 

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Culture & the Due Diligence Process

Due diligence is crucial to every M&A deal, and this includes assessment of the cultural factors that may have impacts on the transaction and its success. Some questions to consider include:

  • Does the target company have the right talent to carry out the acquisition strategy?
  • Which team members are essential to continued value?
  • What are potential deficiencies within management that can hinder long-term success?
  • What is the overall cultural compatibility between the two organizations?

Cultural differences that can be deal killers need to be identified as early in the process as possible, keeping in mind that cultural differences can, in some cases, be beneficial. In any case, cultural differences should never be disregarded. Because they are so important to the success of a deal, they must always be evaluated and effectively managed.

Ready to Sell?

If you feel the time has come to sell your company, start the process off right by reaching out to the M&A experts at Benchmark International. Not only will we help you craft a winning exit strategy and use our global connections and proprietary methodologies to find the very best match for an acquirer of your business, but we can also ensure that you achieve cultural synergy before a sale. As a global company, we understand the importance of culture and know exactly what to look for in the alignment of two organizations.

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Benchmark International has Successfully Facilitated the Transaction Between Circum Limited and EA-RS Fire Engineering Limited

Benchmark International is pleased to announce the transaction between engineering and construction firms Circum and EA-RS Fire Engineering.

Circum designs, supplies, installs, commissions and maintains active fire protection systems including wet and dry sprinklers, wet and dry risers, hose reels, and gas and mist suppression systems.

EA-RS Fire Engineering provides a turnkey solution for clients’ fire safety and regulatory requirements. It is one of only five UK fire systems providers with the various accreditations to supply mechanical and electrical packages in one single client order.

Ready to explore your exit and growth options?

This transaction is of a strategic nature, allowing EA-RS Fire Engineering to expand its current service offering and grow inorganically.

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Check Out Our Newly REDesigned Website!

Benchmark International is very excited to announce the launch of our newly redesigned website - https://www.benchmarkintl.com/ 

Featuring a brand new look, and more customized information, we have built our new website with you in mind!

The streamlined user interface allows you to find the information you are looking for more quickly and efficiently than ever before! You can browse the website based on your interests and goals, meet our team, learn more about our services and success, and see how we give back to our communities. You can also browse resources, webinars, workshops, and articles relevant to you within just a few clicks. 

Check out our new website here

We can't wait for you to dive in and explore the new website. We hope you enjoy the fresh look and find that this portal serves as a valuable resource for you. 

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Benchmark International has Successfully Facilitated the Transaction Between Richlyn Systems Limited and Pennine Holdings Ltd

Benchmark International has advised on the transaction between bespoke software provider, Richlyn Systems, and Sheffield-based Pennine Holdings.

Established in 1983, Richlyn Systems is a specialist software and web developer, providing industry tailored software development, standalone software packages and contractual software maintenance to a diverse range of niche B2B clients in industries such as commercial property, health, manufacturing and distribution.

Do you have an exit or growth strategy in place?

Pennine Holdings focuses on acquiring and developing IT related businesses with a view to creating synergies and improving performance.

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Benchmark International Facilitated the Transaction of BobCAD CAM, Inc. to Harris Computer Corporation

Benchmark International has facilitated the transaction of BobCAD CAM, Inc. to Harris Computer Corporation.

BobCAD-CAM, Inc. based in Clearwater, FL, is a leader in CNC programming software for milling, turning, routing, and wire EDM. It combines CAD (computer-aided-design) and CAM (computer-aided-manufacture) functionality into a single interface. Through its proprietary software, the company provides manufacturers a powerful and easy to use CNC (computer numerical control) programming software.

Larry Pendleton, CEO of BobCAD Cam, Inc. commented regarding the transaction, “We are excited to enter this new phase of our company’s growth. We’re especially thankful to the entire Benchmark International team that supported us in the process. As our M&A advisors, they were extremely knowledgeable, thorough and professional during the entire transaction. The Benchmark International team helped us secure multiple offers from strategic, financial, domestic and international buyers, and we couldn’t have gotten this transaction done without them."

Ready to explore your exit and growth options?

Harris Computer Corporation provides mission critical software solutions for utilities, healthcare, local governments, public safety, and schools throughout the U.S. and Canada. Harris has offices throughout North America. Harris is a wholly owned subsidiary of Constellation Software, Inc. CSI is a publicly traded company on the Toronto Stock Exchange. Trading symbol CSU.

This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth.

Benchmark International's Transaction Director, Leo Vanderschuur commented, "It was a pleasure to represent BobCAD CAM in this transaction. Throughout the process, Larry and his team were exceptionally responsive, diligent, and professional. This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth. On behalf of the numerous Benchmark International personnel that worked on this opportunity, we congratulate both teams on reaching this goal."

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M&A And The Big Data Industry

“Big data” has revolutionized the once traditional methods of analyzing data, making it possible to source more data at a much faster rate and with a great deal of variables. Companies that curate these massive databases do so to help businesses across all industries make more carefully calculated business decisions.

Big data sources revenue from software, hardware and professional services. It encompasses security, storage, infrastructure, networking, discovery tools, applications, and analytics, just to name a few.

The power of big data has grown with the widespread use of smartphones, social media and apps, and its technology continues to grow into edge environments, such as network nodes and industrial machines. Data is flowing between organizations of all sizes to help save time, save money, improve relationships, provide valuable insights, and advance technology. Big data is a major player in automation, artificial intelligence, cloud computing, and the Internet of things—innovations that are impacting virtually every industry in the world.

In an increasingly digitized society, everyone is looking to get a piece of the data pie. Technology companies are built on and around data. Advertising agencies look to acquire data companies in order to gain a competitive edge when it comes to understanding consumer behavior and targeting ads to audiences. Healthcare companies are spending billions on data companies to transform everything from precision medicine to medical records. In education, teaching and learning methodologies are being transformed by the use of big data. Mergers and acquisitions firms are using big data to improve target company searches and results. Essentially, there is no industry that is not somehow touched by the use of big data, and that results in sweeping opportunities for M&A transactions.

 

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Big Data’s Impact on M&A

While individuals, companies and governments across many different business sectors are using big data more frequently, new techniques are making it possible to analyze big data more effectively. This can have a significant effect on certain areas of M&A, such as strategy, business model validation, and valuation.

  • M&A strategies include value creation, operational synergies, risk arbitrage, and company turnaround. An M&A strategy is defined by the goals of the company, the skillsets of the M&A team members, and market factors that determine timing and viability. These factors are becoming more data driven in the making of strategic choices.
  • Big data is greatly improving M&A target searches and screening processes. Better screening can lead to better matching of buyers and sellers, leading to a higher percentage of successful deal closings.
  • Big data is making it possible to get a more detailed analysis of a company’s core business model regarding growth, market patterns, customer preferences, and market reaction to products.
  • Combining big data with market-based valuation techniques will make it possible to extract multiples from much wider market databases. It will also make it faster and more reliable to compare a target company and the company’s valuation reference set.

Regulatory and Privacy Issues

While big data offers major benefits for companies of all industries—with benefits that are passed on to customers through a heightened understanding of their needs—there can be certain challenges when it comes to legal issues that concern privacy, government regulations, international access, and increased scrutiny of information collection practices. 

A prime example of what big data must contend with is the changing privacy laws in Europe. In 2018, the European Union’s General Data Protection Regulation (GDPR)replaced an older law from 1995, creating a new regulation for privacy that affects organizations within the E.U., as well as organizations outside of the E.U. that offer goods and services to residents of the E.U. In addition to requiring clear privacy notices for users, the law also requires that organizations give 72-hours notice of a data breach. Users must also be given certain information about how their data will be used and are allowed to request deletion of their content.

The GDPR law is limited in that it only regulates data pertaining to individuals and not organizations, but it does have the potential to limit the type of data gathered. With such a rapidly growing industry that affects so many people and industries, it can be expected that other countries will take similar actions to regulate the use of big data, especially in the United States.

 

Ready to explore your exit and growth options?

 

Contact Us

We do things differently. Please reach out to our M&A specialists at Benchmark International if you are thinking of selling a company in the middle and lower middle markets. We will formulate a partnership that works in your best interests, using our unique databases to thoroughly identify every possible option until we find the perfect solution for you and your business.

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Don’t Delay Your Exit Strategy

In the latest to happen in the rollercoaster that is Brexit, another delay has been granted to the UK with EU members agreeing to an extension until the 31st January.

Meanwhile, reports from the EU are warning that economies may be falling into a recession with the potential decline in part due to Brexit, with countries particularly struggling when dependent on exports.

Despite this, M&A activity has not halted as there are still plenty of opportunities as it’s a way for companies to grow and develop and dealmakers are always on the lookout for strategic acquisitions. In fact, while dealmakers may be cautious and their timelines may be extended on deals, the uncertainty caused by Brexit has carved opportunities for dealmakers as they are ready to take advantage of factors such as the weak pound sterling making for cheap UK assets. This has resulted in the corporate mid-market remaining relatively robust with last year’s figures at record highs.

Feel like it's a good time to sell?

Therefore, if thinking of an exit strategy the time to act is now before it is too late. Potential recession could be a sign of things to come and while M&A has prospered so far despite Brexit, too many business owners are leaving their planning for Brexit until the last minute to wait for certainty from politicians. If certainty is guaranteed, this could lead to the market becoming saturated once a deal has been agreed or, if uncertainty continues to persist more and more economies could fall into recession – so it’s best to strike while the iron is hot.

Still unsure if now is the best time to sell? Read the below: 

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Benchmark International is proud to be a part of the OCFO Founders Conference 2019

Benchmark International is proud to be a part of the 2019 OCFO Founders Conference, taking place on November 7th at the Ideas Cartel in Cape Town, South Africa, during Global Entrepreneurship Week.

The conference aims to bring together the top business people, investors and entrepreneurs in South Africa for an evening of meaningful networking, learning and inspiration.

As part of the event, Dustin Graham, Managing Partner of Transactions for Benchmark International's South Africa offices will be speaking on the topic of preparing one's business to go to market and extracting its true value.

We wish the hosts and attendees well during the event.

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M&A In The Global Health and Life Insurance Industry

Common drivers of mergers and acquisitions in the global health and life insurance industry include the entry into new markets, access to new technologies, valuation trends, and reaction to regulatory changes. With growth strategies leading the charge, market expansion is often made possible through the acquisition of target companies that optimize product portfolios and customer bases, especially those that provide relatively easy yet quite valuable add-on opportunities, as organic growth does not come easily in the insurance space.

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The Digital Marketing Industry and M&A

The trillion dollar advertising space is a rapidly changing industry with most of the action happening on the digital marketing side. As the world’s digital advertising revenues increase, there is a global demand for more online content. Lead generation, advertising, search engine optimization, and affiliate partnerships are major drivers of income in the 21st century marketing industry. This demand drives up the value of content-related businesses and digital marketing agencies in an era where everyone is glued to their connected devices. All of this screen time has caused traditional advertisers (print, TV, outdoor, radio) to shift their largest spends to digital marketing tactics and mobile internet advertising, even outspending television ads.

Worldwide digital advertising spending is predicted to reach $517 billion by the end of the year 2023.

The robust growth, sheer size, and high fragmentation of the digital marketing sector has led to healthy mergers and acquisitions activity involving digital agencies. Everyone from traditional advertising agencies to private equity investors is seeking target companies that offer growth benefits.

The establishment of digital capabilities and relationships has become a major priority for traditional ad agencies and their large holding companies as they look to grow their digital revenue and expand their portfolios. As conventional media continues to be displaced by digital marketing, the percentage of media spend on digital marketing on behalf of traditional ad agencies will continue to grow.

Evolving Technologies

In the digital marketing industry, there is also growing popularity of technologies that offer individualized features and more in-depth experiences. Brands are being pushed to invest and acquire these types of technologies while post-sales marketing has become a more prominent element along the customer journey.

  • The use of chatbots and personalized messaging is enhancing customer experiences.
  • Audio queries made possible by smart devices and digital assistants are driving voice search.
  • Online video advertising is a quickly growing segment.
  • Artificial intelligence analytics are helping to better target marketing strategies based off of real-time data. This data leads to meaningful insights that are used to improve customer interaction, and optimize media budgets and marketing strategies.
  • Social search is changing e-commerce and vehicles for product reviews and recommendations.

This industry is sure to see more and more future technologies that have yet to be developed, continuing to drive rapid change and growth, and create opportunities for M&A.

Large User Platforms

Giant platform companies such as Google and Facebook provide free digital products and services but are still able to profit because they reach such massive audiences.

The larger the platform, the more consumer data is collected. The more a consumer uses the platform, the more information is gleaned about them. And with more data, the platform can better tailor the content consumers see, and keep them on the platform longer. This results in improved customer experiences and more advertising capacity, which means better understanding of consumers, heightened influence, and more revenue from targeted advertising.

Affiliate Partnerships

Affiliate partnerships use affiliate websites to promote products or services that belong to another company. The valuation of an affiliate website depends on the specific terms of the affiliate program. These factors include longevity, product category and seasonality, commission tiers, high caliber content, and the link portfolio. Websites that fulfill these attributes often have the better earnings, margins and lifecycle, which are attractive to investors. For valuation purposes, advertising agencies are similar to affiliate businesses because they are dependent upon content and end-user action to produce revenue.

These types of partnerships that monetize content also apply to offline businesses that need new and better ways to generate access to audiences. Investors also tend to be drawn to this segment based on existing relationships that can be used to an advantage.

Exit Opportunities

Some digital marketing agencies are being established with the goal of selling in mind. There are extremely low entry barriers when it comes to creating a digital marketing firm, but there are also limited benefits to growth. Some brands do not wish to work with a huge firm. And low employee tenure means lower retained corporate knowledge in an industry where talent retention is already incredibly challenging.

An agency with strong historical growth and projected growth of more than 20% can lead to strong multiples. The purchase of smaller agencies offers opportunities for growth for the large advertising agency groups and an easy way to cash out for the leadership of the smaller agencies.

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Please feel free to contact our M&A advisors at Benchmark International to discuss your next move. Our industry expertise and global connections are true game changers when it comes to selling or growing a company, and forming an exit plan.

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The Global Packaging Industry and M&A

Manufacturers in the global packaging industry produce items such as bags, films, air pillows, bubble cushioning, heavy plastics, aluminum foil, paperboard, and corrugated materials.

In a segment that is greatly influenced by transportation and logistics costs, strategic buyers look for options that offer attractive margin profiles, cost-savings manufacturing advantages, shareholder growth options, and deals that broaden industry presence and consolidate business lines. Private equity buyers are inclined to focus on niche opportunities that leverage unique and proprietary capabilities and offer strong returns.

In this particular sector, lenders tend to show willingness to finance deals among packaging companies, which boosts healthy valuations. This is because packaging manufacturers are able to generate strong cash flow and are not overly vulnerable to economic downturns.

Growth from E-commerce

As long as e-commerce continues to thrive and the world demands sustainable and cost-efficient packaging solutions, the demand for packaging products will persist, driving mergers and acquisitions activity in this highly fragmented industry.

Protective packaging solutions are naturally of significant interest to e-commerce companies, as is machinery that uses automation to improve packaging processes. There is a demand for packaging companies that can offer innovative and attractive packing solutions that are protective but lightweight and focused on reducing package footprint size.

 

Ready to explore your exit and growth options?

 

Fast-Moving Consumer Goods (FMCG)

The FMCG segment involves high-volume, low-cost products that move quickly off the shelves of stores, such as paper products, cosmetics, medicines, detergents, and plastic goods. Packaging is top priority in the FMCG market because of how it directly affects brand positioning, differentiation, and high visibility through the use of graphics and product information. It plays a major role in consumers’ purchase decisions in a very competitive environment.

FMCG packaging makes up a large share of the costs involved in product manufacturing. Companies must look to innovation in packaging to reduce operational costs.

Increasing populations, technological advancements, and a demand for eco-friendly packaging are all key drivers of growth in the FMCG sector. Food and beverage is the largest market for investment from packaging companies.

On the supply side, the FMCG packaging market is highly fragmented with fewer companies having a substantial share in the overall market, leading to fewer barriers to entry. Additionally, the challenges for growth in this sector include issues surrounding skilled labor, equipment and machinery.

Healthcare and Pharmaceuticals

Medical plastics are a major driver of high valuations in the packaging sector. The healthcare industry is subject to significant regulatory and technical requirements and there is a need for companies that can fulfill their specific and complex packaging needs, which include thermoforming and injection molding techniques. The injection-molding sector is especially fragmented and highly competitive with steadily growing revenues and opportunities for consolidation.

There is also a demand for smart packaging technologies that help to combat the counterfeiting of medicines.

Packaging companies that serve medical device and component companies tend to enjoy stronger customer relationships, steadier revenue, better pricing power, and higher valuations. M&A activity in this area is highly focused on technology and expansion of capabilities.

 

Feel like it's a good time to sell?

 

Sustainable Solutions

Sustainability is an important factor in the packaging industry at every step of the value chain, as consumers and regulators apply pressure regarding environmental impacts of packaging applications. In addition to functionality and convenience, it is a key criterion in purchasing decisions. This demand for novel solutions and green technologies creates a noteworthy opportunity for industry players. 

Plastics are cost-efficient, convenient, and have useful characteristics in packaging, so their use remains in demand. However, there is a sweeping campaign to reduce the use of plastic in packaging materials.

Airless packaging systems are a growing market. They are designed to limit waste and contamination while improving product shelf life. These packaging products include bags, pouches, bottles, jars, and tubes.

As there is a growing need for packaging companies to lessen the environmental effects of their products, those that stay ahead of the curve by incorporating these solutions will benefit from substantial growth opportunities and will draw plenty of attention for M&A activity.

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If you feel the time has come to enter into a merger or acquisition, reach out to our specialists at Benchmark International to get the ball rolling. Our customized solutions, global buyer network, and proprietary methodologies have the power to execute deals that are designed to always exceed seller expectations. 

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M&A In The Global Medical Services Industry

Globalization of healthcare contributes to a continually developing global medical services industry that encompasses hospital, physician and clinical, nursing and continuing care facilities, home healthcare, surgical facilities, emergency services, laboratories and other providers.

Value-based Care

An industry that was once about volume-based care has strategically shifted to value-based care. Because this requires improvements in facility efficiencies and quality, it also calls for more specialized external service providers. One tactic that medical services companies are using to gain competitive advantage is to keep their core caregiver and third-party caregiver groups under the same roof. As medical services must now deliver on value-based care, there is an increased need for integration of care and management of financial constraints.

 

Feeling unfulfilled? Explore your options...

 

Workforce Demand

As populations increase, especially aging populations, and chronic diseases remain prevalent, the demand for medical services increases, and so does the demand for specialized medical caregivers.

By the year 2030, it is estimated that the global demand for health workers will reach 80 million workers, while the supply of health workers is only expected to reach 65 million over the same period. This will result in a worldwide shortage of 15 million health workers. 

Regulatory Factors

When regulatory burdens on healthcare companies are reduced, technological advancement escalates, creating opportunities for medical technology companies including mobile and wireless providers. Also, advancements in surgical techniques result in less invasive treatments and shorter recovery times, altering the traditional hospital model. Additionally, third-party lab providers and research companies grow in demand along with the need for more complex clinical tests and services.

M&A Due Diligence

Mergers and acquisitions in the medical services industry require especially savvy due diligence in order to obtain a completely accurate assessment and valuation. Deals can be particularly complicated between hospitals and health systems.

As a seller, it can be extremely important to have sell-side due diligence conducted. Getting ahead in the process months in advance can be well worth the costs. When it comes to the medical services industry, billing and coding issues can trigger major delays in any M&A transaction.

Other benefits of sell-side due diligence include:

  • Enhanced credibility and positive reputation of the seller on the market
  • The increased possibility of higher bids
  • Adequate preparation for management and employees so that there is minimal disruption in workplace operations
  • The potential of a shorter due diligence cycle on the buyer’s side
  • A decrease in the chances of surprises that can derail a deal, which can increase the likelihood of the transaction being a successful one

Medical Services M&A Drivers

Among the key drivers of M&A activity in the global medical services industry, the top reasons include:

  • The goal of increased market share to broaden networks and patient access
  • Improved integration across the continuum of care
  • Keeping pace with increasing prevalence of consumerism, which includes more convenient, non-traditional care settings
  • Gaining access to capital for investment in staff, new technologies, medical equipment, and improved operations
  • A way to improve efficiencies and enhance patient satisfaction
  • Reaction to rising consolidation among insurance payers
  • A growing need for alternative payment models, which reimburse providers based on value rather than volume of services

 

Ready to explore your exit and growth options?

 

Traits of High-value Targets

In this sector, the attributes of high-value M&A transactions can vary greatly, however certain characteristics can be found to be consistent across most successful deals:

  • A defined operating model with strategic vision and revenue-growth and cost-reduction strategies
  • Transparency in communications regarding culture and organizational goals
  • Focused integration planning that aligns with the deal’s rationale

M&A in Diagnostics

Diagnostics present unique circumstances for M&A activity apart from the medical services industry. Clinical laboratories in the medical services industry vary in size, business model, areas of concentration, R&D capabilities, as well as in their relationships with providers and payers. With countless labs in operation, acquiring the right one can be challenging. Large public labs tend to focus on deal volume, while other buyers are interested in the laboratory testing market, and private equity leans towards companies with attractive cash flow yields. In many cases, because diagnostic manufacturers, life-science companies, and big pharma all need access to patient and pathology samples for research and development, labs are strategically acquired by non-laboratory healthcare companies.

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If you are looking for exit and growth strategies, Benchmark International offers unique ways to identify the perfect buyer, take your company to the next level, and create dream exits. We look forward to working with you.  

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Benchmark International Successfully Facilitated the Transaction of Jordan Human Resources To Vinton Holdings

Jordan HR is a niche human resources firm that specialises in the recruitment of medical practitioners, with a keen focus on Locum Pharmacists.

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Why You Shouldn’t Wait For The New Year To Sell Your Company

A new year always conjures up the feeling that it’s a clean slate, so that may seem like a good time to take your business to market. And, yes, timing is everything, but waiting for the new year could mean that you miss out on the opportunity to get the maximum value for your business.

Get Ahead of Economic Uncertainties

No one can say for sure what the state of the global economy will be next year. But we do know what it is NOW. These are certainties that we know, understand, and can work within. We know what M&A strategies can be advantageous today based on the level of:

  • Buyer demand
  • Bank generosity
  • Current valuations
  • Tax breaks
  • Interest rates
  • Retiring competitors
  • Inflation
  • Political unrest

It is not uncommon for business owners to want to postpone a sale with hopes that they can sell at a higher price in the future. This can be a dire mistake. 

 

Ready to explore your exit and growth options?

 

Waiting too long could mean that you end up trying to sell during a recession, a down cycle, or under other unfavorable circumstances that result in you not getting all that your company is truly worth. It can also mean that if you miss out on your ideal window of opportunity, you may have to wait five to seven years for such an opportunity to arise again.

Take Advantage of a Seller’s Market

What may be a seller’s market today, can just as easily become a buyer’s market tomorrow. If you decide to wait, you could end up losing your upper hand as a seller. There are millions of business owners that are approaching retirement age and if there is an influx of these sellers onto the market, it can result in increased competition and buyers will enjoy having their pick of the litter. That also means lower valuations for your company. You can easily get out in front of this scenario by not hesitating to start the process.

According to the Pew Research Center, 10,000 Baby Boomers will celebrate their 65th birthday every day through the year 2030.

Act Early for a Patient Process

Patience is a virtue, especially when it comes to selling a company. Ironically, getting into the sale process sooner rather than later will afford you the ability to be patient through the process. If you wait too long and end up in a situation where you are panicking to sell your company, buyers will sense your desperation and will try to low-ball you on a deal. By demonstrating to buyers that you have been carefully considering and planning for this, rather than appearing to just “want out” without an exit or succession plan, it will likely increase your sale price. 

 

Feel like it's a good time to sell?

 

Test the Market

Maybe you are feeling too uncertain about selling now. Keep in mind that you can always test the market. Prepare your company for sale, put it out there, and see what kind of offers you get. You might find that there is interest in your company that you were not aware of, and eager buyers might come to the surface, surprising you with offers that are hard to turn down. In the case that the offers are lower than what you were hoping for, you can simply take the company of the market for the time being and wait for a better time.

Ready to Talk?

The process of selling a business can take several months. Even if you are simply considering a sale, reach out to one of our M&A advisors at Benchmark International to start the conversation. We can help you get a better understanding of the market timing, if you feel that you are ready to sell, and what exit strategy is right for you. We also understand that you have worked hard to build your business, and parting with it is going to be an emotional process. That is why we always work in the seller’s best interest, working relentlessly to arrange a deal that is the absolute very best for you and your family and with which you feel truly comfortable.

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Benchmark International (South Africa) is proud to be shortlisted for the annual Africa Global Funds Awards

Benchmark International (South Africa) is proud to be recognised and shortlisted in the category of Best Independent Advisory Firm alongside some of South Africa’s most recognised corporate finance brands.

The Awards were created to honour and generate both industry and public recognition of the outstanding efforts and accomplishments of Service Providers covering Africa.

The 2019 awards shortlist was announced in mid-September and the black-tie event and ceremony will be hosted on October 24th at the Radisson Blu Sandton, Johannesburg, South Africa. 

Benchmark International’s nomination was motivated by the consistent year on year growth in transaction activity and success achieved in transactions across the spectrum of M&A and corporate finance disciplines.

About Benchmark International:

Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximising solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $6B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 12 offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.

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