MERGERS & ACQUISITIONS
Unlike publicly traded companies, no one knows for sure what a privately-held company is worth until it goes to market. Selling a privately-held company can take 11 to 24 months. Yet, most owners have 70% to 80% of their net worth tied up in an illiquid stock - their business. Make sense?
You built your company. It's very important to you. It's very important to us too. One day you will leave it. We provide you with options. Our M&A specialists have consulted with well over 3,000 private companies across industry sectors while completing over $5 billion in funded transactions.
We have over 30 years of archived data and we know what creates value in the eyes of a buyer. The information below is data gathered from numerous closed transactions in every business sector. Each company is different and only the market can determine the outcome.
100% of companies we have taken to market we have generated premium offers.
Only 8% of sellers had ever even heard of their eventual buyer.
Average targeted prospective acquirers in a Buyers List was 270.
Average response rate from the market was 21%, nearly doubling the M&A industry standard of 11%.
Average number of days between hiring eMerge and executing an LOI was 225 days.
In 30% of closed transactions, the seller decided to retain some equity and grow the business with the buyer.
PEG’s executed 76% of incoming Confidentiality Agreements but represented 21% of buyers on closed transactions.
PEG’s with platform companies represented 24% of closed transactions.
Strategic buyers represented 55% of closed transactions consisting of 73% private companies and 27% publicly traded buyers.
When selling a publicly traded company, simply pick up the phone, call your Financial Advisor, get the publicly visible stock quote, sell your shares, and the money is in your account later that day. The same is not true for privately-held companies.
Publicly traded companies have market makers, greater access to buyers and therefore enjoy more efficient markets. More efficient markets provide for higher market values.
Our M&A Process is designed to confidentially make markets to provide access to the greatest number of institutional buyers for privately-held companies. This increases market efficiency resulting in the Highest Quality Transaction.
Making an efficient market is only the beginning though. The due diligence and closing phase is perhaps more challenging than making the market. Complex issues arise in the moment. We have seen them all. And more importantly, we're on your side.
Do you have a business challenge for which you need assistance? Contact us and see what we can do for you.