During this fast-paced economic period, almost every sector of the economy is experiencing incredible growth. However, the next phase of this growth is an inevitable consolidation and vertical integration of the competing companies within and in related sectors. Although most businesses are experts in their industry, many such companies do not have much experience in selecting, valuing and acquiring synergistic businesses that will allow for continued growth and profitability. Unfortunately, a company that can not continue to grow, in many instances, will not be able to continue to compete against growing companies who are experiencing more efficient use of G&A budgets and who can leverage economies of scale that drive prices lower. Additionally, many companies cannot afford the time and expense of recruiting, training and maintaining a full-time M&A division.
MarshallMorgan has solved this dilemma by offering the experience of full-time experts in mergers and acquisitions on a project basis. In effect, MarshallMorgan is your company's M&A division at a fraction of the time, expense and risk. Below is a partial list of services offered:
- Initial background research on prospective target acquisitions. Complete valuation model analysis of targeted markets including all return benchmarks, debt coverage ratios, cash flow analysis including financial pro-forma scenarios.
- Extensive and detailed business due diligence review of all assets including real estate and historical financial reports.
- Review of all seller or franchisor required sales documents including asset sale agreements, UFOC, franchise agreements, management agreements, royalty agreements, real estate and lease documents, etc.
- Negotiation of lease assignments and renewals.
- Development of transition process from seller to buyer operations or from corporate to franchisee operations including employee transition announcements, transition meetings / interviews and on-boarding training programs.
- Consolidation or co-branding opportunities with other related or franchised concepts that will bring vertical integration creating more efficient economies of scale, operational cost savings, additional customer base synergies and greater profitability to existing operations.
- Preparation of loan request proposals including business plans, market analysis, valuation models, pro forma financials, operational background reports, development analysis, appraisals, real estate and lease due diligence, etc.
- Sourcing of commercial or securitized lender financing including Small Business Association and SBIC loans.
- Sourcing of equity or alternative financing through private or public placements. (See related "Public & Private Placements" service description)
- Negotiation of all lender required documentation including loan terms, security agreements, credit agreements, etc.
- Post-closing reviews and on-going financial performance audits.