|
 |
|
|
Merger Preparedness
Krall & Co. will help your company evaluate strategic alternatives, including the possible sale of the Company. We will also act as your exclusive advisor in implementing any course of action resulting from this evaluation.
In practice we take the following steps. Initially, we perform due diligence and work with you and your financial staff in preparing a three to five year business plan. Based upon the plan, we determine the present value of the Company as a going concern. Next, we analyze the external marketplace, develop a list of prospective acquirers, evaluate prospective acquirers’ ability and willingness to pay a full and fair price, and study their success in past acquisitions in regard to various criteria. We then make a judgment as to whether you could achieve greater net proceeds on a present value basis through an outright sale of the Company today or by executing your business plan and exiting at a future date.
As judgment is subject to change, we help you perform a periodic review of the Company’s performance versus the plan and make adjustments to our valuation. Based on the revised valuation and an updated review of what could be achieved through outright sale, we revisit your exit strategy. This process places you in position to respond quickly and easily to any unsolicited proposals from third parties. If you are a privately-held company, this exercise helps you identify the right transaction when it arises. If you are a publicly-held company, the exercise helps you fulfill your fiduciary responsibility to shareholders.
Sell-Side Transactions
In the event that your Company decides to seek a buyer, we would assist you in (a) developing a list of prospective purchasers and a strategy for the sale of the Company, (b) preparing a descriptive memorandum that describes the Company’s operations, management, results of operations and financial condition and (c) contacting and eliciting interest from prospective purchasers. Krall & Co. reviews and analyzes all indications of interest received from prospective purchasers, advises you as to structure and valuation, and assists you in negotiations.
Selling a Stake to Private Equity
Some business owners seek to reduce risk by taking some money off the table, but want to continue to run their companies in the near-term and retain some upside. Selling a stake to a private equity firm might be an appropriate solution. We help such owners identify the private equity firms that best fit their needs and, if appropriate, make introductions and assist with regard to presentations, valuation and negotiations.
Buy-Side Transactions
In the event that you decide to remain independent, execute your business plan and grow through acquisitions, we would assist your Company on the buy-side. At the outset, we help the Company develop financial models in order to enable you to evaluate and respond in a timely fashion to opportunities as they arise. Then, based on your priorities, we develop a list of potential acquisition candidates and evaluate their business strategies, operating results and financial position on an ongoing basis. We assist the Company in determining a preliminary range of values for the target and in developing and implementing a course of action. We help the Company design effective deal structures and assist in due diligence, negotiations and review of agreements. If appropriate, we would advise the Company regarding the financing of acquisitions.
|
|
|
|
