Business Brokers
Business Brokers (Exits, Mergers and Acquisitions):
Any business whether successful or less so, from time to time requires (new) investors or a change in shareholders. This could be to raise new capital, replace capital or replace existing shareholders–some or all. Perhaps it’s the current shareholder(s) or owners(s) wishing to explore outright sale of their equity, realise value, emigrate or retire. Whatever your reasons may be, an experienced group of professionals, specialising in the Medium to Large private companies are available to help you through this process.
Understanding exactly why current management and shareholders may wish to seek new investors, and their expectations (price or other), and to then assist systematically with a preparation phase will ensure maximum value. We will hold your hands through the entire process from start to completion (payment) and not only the actual sale itself.
We invest much time and effort upfront to help you position the business correctly and perhaps even wait for certain issues within the company to get “cleaned up” or normalised prior to going into the market. Often a request for finding buyers results in a phase to improve the business before doing so. Quite a few of our “sellers” stopped the process once we had corrected some of the inefficiencies and other issues. And we are very happy to accommodate that! One seller, upon reviewing our draft Memorandum of Information (IM), commentated that she didn’t want to sell it anymore, although was forced to do so anyway due to emigration plans.
The drafting of the IM enables us to verify all information and ensure it is correct, accurate and complete. This saves much time further in the process when presenting to potential investors and buyers. Only once the business and its management/shareholders are 100% ready, do we go into the actual marketing and sale or acquisition process.
We will not just advertise your business on a website and list it like second-hand cars or houses. Ours is a personalised, bespoke and discreet service. We jointly identify targeted potential buyers (or sellers) and we then discreetly approach those individually one by one, instead of broad web based advertising. That is also why we simply cannot offer this brokering service to very small businesses. It is simply not economical for either of us to do so due to the work and effort involved. We are there every step of the way! Totally discreet and confidential of course. This service is regretfully only available for businesses with a minimum annual turnover or total assets of R10 mil. No start-ups or micro business please
During this IM phase we may also jointly undertake any preparatory work to get the company into the best shape possible, time permitting to maximise value.
We further offer as a bundled or discreet advisory service:
- Assistance with the planning and/or execution of mergers, acquisitions or exits from a business unit, company or selected shareholders.
- Formulation of a detailed Investment Memorandum (“IM”), the format and content with which investors will be familiar and include all relevant information typically needed: history, operational, structure, financial info etcetc.
- Planning of Exit strategy; formulation of its exacting objectives and desired outcomes; and then all preparatory work to all business aspects for eventual exit.
- Capital raising.
- (Re-)negotiating loan instruments.
- Due diligence process preparation or execution
- Identifying possible investors or acquisition/merger potential targets.
- Deal structuring advisory.
- Negotiations assistance and support.
- Identifying suitable partners and candidates for M&A opportunities.
- Pre-legal advice and input.
No doubt there are many accounting and/or legal firms that offer similar services in the M&A field, however they often come at very hefty fees or commission structures, and frequently follow very dogmatic and inflexible in-house processes, procedures and templates, which may not suit you.
Traditional brokers are typically singularly focusses on the sale itself, whereas we assist and handhold you through the entire process from start to finish. The Interventionist are much more practical, hands-on and results oriented at very reasonable fees (which are negotiable and partly success orientated).
The Interventionists are able to help you with two distinct approaches when offering Sell-side brokering or advisory services in the M&A space:
(1) Under a full mandate whereby we undertake all the preparatory work, writing of the IM, evaluating all company information including financials, valuation, identifying and pursuing prospective buyers, negotiations, contracting etc. This option involves a lot of work on both sides and hence requires an upfront commitment by our customers followed by success-dependent fees. All our work will remain subject to your approval at every step of the way! It is a very intensive and bespoke but discreet process. Success is almost always guaranteed with this process.
(2) If option (1) is too expensive (typically for smaller companies between R10 to R100 mil annual revenues) then we are able to offer an advisory service only, whereby we guide you through the correct process to be followed by very regular scheduled and ad-hoc consultations. The main difference here is that you do all the necessary work, but under our guidance and review. This option is easier on the pocket, provided you have the time, energy and ability to undertake all the necessary work. We only charge a monthly retainer fee for the duration of the project.
Business intervention methods target the area of weakness in your company.
Whether the company is in a downward spiral and needs to be saved, or already successful and trying to reach the next level, understanding how to implement appropriate business intervention strategies can help make the effort successful. We do our work in any area of your business where our help is most needed and we can have a measurable and immediate impact.
An outsider is often better placed to cut through the sometimes emotional implications and can take a more objective view on alternatives available. Ultimately we would never take the final decision on how to proceed. That remains strictly within your domain. But when you feel you need help, and cannot afford the sometimes convoluted processes (death by paper and powerpoint!) of traditional advisors, such as business rescue practitioners, consultants, auditors, lawyers etc, our Interventionists team can assist and get to the answers much quicker and cheaper than anybody else can.
Our services and expertise are available across most (almost all) industry segments, and we have people on the team with backgrounds in financial services, IT, telecommunications, retail, manufacturing, property, etc (to mention but a few). Don’t be shy asking – we will honestly tell you early on if we are unable to help you.
