How We Work With Sellers
As a business owner, the company you have built is very likely to be your most significant asset. When you are thinking about an exit strategy, either to retire or to move on to other ventures, you want to realize the maximum value for the hard work and creativity that you have invested.
You want an experienced transaction partner whose interests align with yours. That is why, unlike most investment banking firms, our entire compensation is in the form of a success fee at the conclusion of your transaction. MBA charges no retainers or consulting fees.
Since 1984 MBA has assisted the owners of many manufacturing and distribution businesses, primarily in the Aerospace & Defense sector, to accomplish their goals. The result often is a sale of the company to a strategic buyer, to a competitor, or to a financial buyer. It may also be a well-structured sale to the company’s employees, through an ESOP (Employee Stock Ownership Plan).
In some cases, the owner may choose to retain a minority ownership interest after the sale. This can benefit both parties. The buyer may feel that, with "skin in the game," the seller will be motivated to ensure that the acquired company continues to perform well. For the seller, the minority interest is likely to increase in value with the growth of the combined companies, presenting the opportunity for a subsequent sale of the remaining interest at a higher price.
As a result of our years of experience in the sector, MBA is familiar with the majority of potential A/D buyers, enabling us to efficiently select the most likely group of buyers for a transaction. In addition, MBA is part of an international network of Investment Banking firms, enabling us to reach potential buyers across the United States and throughout Europe and Asia.
MBA works closely with each business owner to establish a valuation for their company. The analysis incorporates not just the company's historical and current financial performance but its growth potential, backlog, operating and marketing strengths, intellectual property, and the skills of its management team.
We then prepare a Confidential Memorandum 'book' that accurately and positively reflects the strengths, potential and true value of the company. We present this book to selected prospective buyers. MBA is sensitive to the seller's need to keep the process strictly confidential, in order to prevent vendors and customers from becoming aware of the potential sale.
As noted above, we prepare all other necessary documents, and provide all other services to accomplish the sale of your company, without retainer or monthly fees. Instead, we are compensated only through a success fee at the completion of your transaction.