Why private equity groups and investment bankers keep shaking your tree

As the national economy continues its recovery, many business owners find themselves inundated with letters and phone calls from private equity groups and investment bankers representing "buyers." They're basically shaking your tree to see what falls out.
The large amount of capital raised by equity groups in 2005-2007, combined with many corporate balance sheets flush with cash have created a unique circumstance in the market today - a lot of money chasing too few companies ready to sell. Following basic supply and demand principles, this is driving up multiples for sale transactions.
When professional buyers like private equity groups and investment bankers call you direct, they are hoping to avoid the involvement of an intermediary and thereby increase their odds of getting a "good deal" - from their perspective! Unfortunately, oftentimes that may not equate to an optimal deal for the business or you as the owner.
When you get this type of call, you and your existing team of business and financial advisors don't need to go it alone. Having an experienced M&A firm in your corner can provide you with the tools and information you need to determine if that Buyer is the best buyer for your business and to get the best deal for your business. The Charter Group maintains a focus on what's in it for your shareholders and ensuring that you achieve your transaction objectives.
  • Experience and internal tools to determine what your business is really worth in the current economy and state of your industry
  • Working "on point" to manage the business sale or acquisition process - keeping the work load and details of an emotional and difficult process off your plate; leaving you and your existing team free to concentrate on running the business and continuing to build value
  • A proven track record of bringing a 25-50% price premium via a correctly managed process

How an M&A advisor can improve your bottom line 

When a regional distribution company was approached directly by a national competitor with a purchase offer of $12.5 million, they realized they needed someone in their corner. They asked Charter to review the proposal. Our valuation showed the company was worth significantly more, so we pursued additional buyers, prompting five letters of intent.
As a result, the national competitor increased its offer to $18 million+ and we closed the deal. The final transaction was valued at nearly 50% more than the selling shareholders would have achieved without a better understanding of the market and by "going it alone."

We're in your corner                                      

The Charter Group specializes in transactions ranging from $10 million to $100 million, providing personal attention that large cap M&A firms simply won't deliver to this segment, while providing a high level of expertise that local business brokers can't match.
We look forward to sharing our expertise with you and helping you achieve success as a business owner, whether you are ready to buy, grow, or sell your business. To get started, please feel free to call us at 616.235.3555 or fill out our consultation request form and we'll provide you with a complimentary and completely confidential consultation.