The merger and acquisition (M&A) process requires careful planning, professional support, and an understanding of the deal dynamics involved in the negotiations. Completing a transaction is not easy. Many sellers only do a transaction only once in a life time. Companies that have not been engaged in many M&A transactions frequently make mistakes that can result in a less favorable price or terms. They can even potentially destroy the deal.READ MORE >>
Many business owners come to a point where they are ready to “take some chips off the table,” and continue to run their business on a day to day basis while cashing in on some of their hard-earned growth. In these deals a business owner sells equity in the company while staying on and maintaining a salary. These deals are known as elevator deals. An elevator deal consists of a buyer taking a stake in the business for an agreed amount of cash while leaving day to day management to the current owner.
Perhaps your children have reached college age and you now have tuition bills coming in twice a year. Perhaps you’re not quite ready to retire, but would like to cash-in on some of your business’ current market value, and invest that money in your retirement fund. Or, perhaps you’re simply ready to take some chips off the table while continuing to earn a salary. In these cases, an elevator deal would be the right fit for you.
Elevator Deals include the owner selling part of their business in exchange for partial ownership. In this manner of exchange, the business owner(s) will maintain a minority equity stake in their company, while new ownership takes on the majority position. These deals often include prior owners staying on, working on their business in a day-to-day capacity, while earning a salary, with a percentage of the business’ bottom line passing through to new ownership. In some cases, owners are able to step outside of their prior managerial roles while maintaining a stake in the company and its profits.
The goal for new investors is to grow the business and the value of their stake in the company. These owners may have the goal of a resale several years down the road, and growing your business and its place in your community, be it regional or national, just as you have done is their goal. In maintaining the high standard you have set for the quality of your products or services, equity investors are growing the value of their investment.
Many business owners worry about selling part or most of their company. They worry that the buyer’s intent is to take as much cash out of the business as possible and leave prior owners, those people who built the business from scratch, with a company they love left in tatters. Benchmark International will secure equity investors in your business are the right fit. Ensuring that they intend to increase the value of your company while maintaining its true identity.
In engaging Benchmark International, our team will diligently craft marketing materials to accurately reflect your business to the market. Once you approve of those marketing materials, our transaction team will take over and begin marketing your company to potential investors. At this point, many business owners begin to feel as though they are pressured to sell to individuals who don’t understand the heart and values of their company. Benchmark International will work tirelessly to ensure you never feel those emotions. We will work for you until we find the right fit, in order to ensure that as you continue to manage your company you’re not hand-tied to investors who are simply concerned with how much they can take out of your business’ profits each year.
If you are interested in selling a portion of your business to help grow your company while maintaining a portion of your business, please reach out to us and let us help you take the
Benchmark International has successfully facilitated the acquisition of Bean, Whitaker, Lutz & Kareh, Inc.Bean, Whitaker, Lutz & Kareh, Inc. (BWLK) by CES, Inc. BWLK provides land surveying, mapping, civil engineering, and land planning services in Florida.
BWLK has been in the land surveying, planning, and engineering services business since 1987. The company’s proven track record, commitment to high-quality, professional work, combined with its advanced engineering and surveying technology has enabled BWLK to establish a solid reputation and build long-lasting client relationships.
CES, Inc., a Maine-based firm of engineers, environmental scientists, and land surveyors is expanding its footprint to the Southeast. Denis St. Peter, President and CEO of CES, commented, “CES, Inc. has been utilizing M&A as one of our strategies to help achieve our growth goals over the past several years. By working with Sunny Garten, Leo Vanderschuur, and their team at Benchmark International to acquire Bean, Whitaker, Lutz & Kareh, Inc., we were able to identify and perform preliminary evaluations of several companies quickly and accurately within our targeted geographic area. Benchmark represented several prospective sellers that fit our criteria, and the responsiveness and quality of their initial teaser summaries and more detailed confidential information memorandums allowed us to optimize our search efforts to end up with the best company for CES, Inc. Their significant knowledge of the acquisition process, the sophistication of their systems (e.g., online data exchange), and their willingness to communicate deal structures based on their past experiences were all valuable to the success of our acquisition.”
Scott Whitaker, president and one of BWLK’s owners stated, “On behalf of everyone at BWLK, we are delighted to join the CES team. The more we learned about CES’ approach to its employees and clients, including its Best Places to Work recognition and past project awards, the more we grew excited about our partnership. By joining our professionals with theirs, we will offer new opportunities to our employees and continue our dedication to our clients and provide them the same high-quality services they enjoy.”
“I am honored to join CES as a Shareholder and to help be the link between Maine and Florida,” said Ahmad Kareh, also an owner of BWLK. “CES’ depth of engineering and environmental experts means that we will be able to collaborate with shared expertise to provide our clients with additional capabilities to reach their project’s goals.”
Regarding the deal, Transaction Director Leo VanderSchuur at Benchmark International stated, “It was a pleasure to represent BWLK in this strategic transaction. On behalf of Benchmark International, we wish both companies continued success.” Senior Associate, Sunny Garten, added, “Scott, Ahmad and their team were wonderful to work with. They were engaging and always responsive to diligence requests. We’re excited to see that their legacy will be preserved and enhanced through this transaction with CES.”READ MORE >>
So, you are a business owner who is thinking of moving toward retirement. How do you do that? What are your options? How much money do you need to sell your business for, so you can retire? These are all questions you need to fully explore when you’re ready to make this transition.
What Are My Options?
You have a couple options if you are looking to retire. First, you need to decide what your ultimate goal is. Do you want to completely exit the business? Or do you just want to take a step back and pin the majority of the responsibility on someone else? It’s up to you how you want your money to work for you and how much free time you want to have.READ MORE >>