Initiating and Managing Transactions
Our unique experience in the contract security industry makes us the broker of choice for owners wanting to maximize value in a sale, and at the same time keep the on-going negotiations confidential – which is very important when selling a labor-intensive and customer-sensitive company, such as a contract security company.
Through our experience in managing over 200 security company transactions in 6 countries (most have been in the U.S., the largest security market in the world), we have developed unique procedures for identifying just the right buyer for our seller/clients and managing the negotiations process that leads to a successful closing of the transaction.
Here are our steps in leading our seller/clients through a successful process:
- We meet with the owner to examine pertinent information toward giving an opinion on what the owner should expect in a sale – price, terms, and compatibility with the culture of the seller’s company.
- If the owner agrees with the valuation, we enter into a simple representation agreement.
- We identify the “short list” of best buyer prospects based on the buyers we have already established a working relationship with or new buyers just entering the market, which we have pre-qualified. Since we already have a relationship with the most qualified buyers, we don’t have to advertise our seller/client as being for sale (which is very important when selling a contract security company). The final short list of prospects is a joint effort between our firm and the seller.
- We prepare a confidential information memorandum (CIM) on the company that tells just enough information for a buyer to establish his/her level of interest, which is sent to the short list of buyers after executing a confidentiality agreement (sometimes called a non-disclosure agreement). It’s important to note that the CIM does not disclose sensitive individual customer information, but does contain enough information for the buyer prospect to submit a non-binding offer on the company.
- When we receive the offer the seller likes, we manage the process to a successful closing, which usually includes arranging conference calls for due diligence meetings and working with the attorneys and tax advisors.