Representing
Sellers
Bristol advises business owners on realizing maximum value for existing operations through the sale of a company to a third party. Issues such as management continuity and need for confidentiality will influence the choice of the marketing strategy. Transactions can involve cash, securities, installment features, employment contracts, non-compete provisions, earnouts and future equity participation. The optimal structure of a transaction will likely be influenced by legal or tax considerations. Bristol's M&A advisory services include:
- Preparing
a thorough descriptive memorandum on the company,
- Identifying
and contacting likely purchasers on a strictly confidential basis,
- Structuring
the transaction to maximize the price and terms for the seller, and
- Working with lawyers and accountants to close the transaction expediously.
The following are considerations involved in selling your business:
- Seller's
Objective and Structure - Issues such as management continuity and
need for confidentiality will influence the choice of the marketing
strategy. Transactions involve cash, securities, installment features,
employment contracts, non-compete provisions, earnouts or future equity
participation. The structure desired may be influenced by legal, tax
or regulatory matters. There are corollary issues involving the sale
of stock or assets, the retention of liabilities and representations
after the sale.
- Business
Review
- An extensive review of the business is undertaken in sufficient depth
to identify the elements contributing to its value. This involves knowing
the company's products, operations, marketing, facilities, competitive
posture and the industry environment in which it operates. Growth prospects
and the plans and aspirations of management are evaluated.
- Valuation
- To establish a valuation range, the company's profile is measured
against the market value of comparable companies, the prices achieved
in similar transactions, break-up valuations, the strategic value to
potential acquirors and the market climate in which the sale takes place.
- Offering
Memorandum
- This important document is prepared in sufficient depth so that a
potential purchaser can make an informed judgment regarding its degree
of interest and the value that can be justified. The memorandum provides
a common base of information available to all interested parties. The
Bristol team works with senior management to present it at its strongest,
within the formal and ethical requirements of a financial selling document.
Our experience with potential acquirors has taught us what information
they need to know and how to present that information cogently.
- Identifying
Purchasers - Bristol maintains contact with hundreds of U.S. and
foreign purchasers who advise us of their specific acquisition interests.
We start with this database from which we develop a list of potential
buyers who are likely to be the advantageous for our client.
- Marketing
Strategy - Only parties determined to have a serious preliminary
interest, those who have been approved by our client and those who have
signed a confidentiality agreement receive the information memorandum.
The process is designed to encourage competition, to provide potential
purchasers with access to information without disrupting the company's
activities, and to bring the sale to a conclusion within a reasonable
period of time.
- Negotiations
- Ground rules are established for reviewing financial information,
visiting the company, conducting negotiations and submitting proposals
to purchase the business. Bristol plays a significant role by acting
as the intermediary between principals, advising on the structure of
the proposed transaction and working to maximize the price.
- Other Considerations - For the owners of a business, there are often considerations going beyond financial values. There may be concerns about the treatment of management and employees or the impact on customers and the communities where the business is located. If a company is closely-held, the business may represent the owner's most important asset. There may be an interest in the effect on family finances or in estate and tax planning issues.
Representing Purchasers
Bristol also represents acquirors seeking to purchase a business. The firm helps clients consummate successful transactions through its awareness of acquisition opportunities and familiarity with the businesses to be purchased and by its valuation, structuring and negotiating skills.
Other Services
The firm also advises clients regarding restructurings or recapitalizations to enhance the value of a business. These assignments may involve changes in a company's capital or liability structure or basic alterations in the business itself through acquisitions, divestitures or the rationalization of services or facilities.
We look forward to hearing from you.
Alan P. Donenfeld
President
Bristol
Investment Group, Inc.
110
East 59th Street, 29th fl.
New York, NY 10022
Tel: (212) 593-3157
Fax: (212) 202-5022
Website: http://www.BristolDirect.com
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