At H3K, we have a dedicated mergers and acquisitions (M&A) department staffed with professionals who specialize in handling larger, complex business transactions.
What Makes a Business Qualified for an M&A Transaction?
Your company might qualify for our M&A services if:
Your business generates earnings exceeding one million dollars. Companies at this scale often attract acquisition interest from industry players.
Your business is too large for an individual buyer to acquire or finance using traditional methods. When a company’s value reaches multiple millions, it typically requires institutional or strategic buyers.
Your company operates in an industry currently undergoing consolidation, where strategic buyers seek to merge smaller entities.
Your business is growing rapidly and may require capital or partnership to continue expansion.
You want to expand your business while potentially retaining some ownership equity, which calls for M&A expertise
If your business does not fit these criteria, our business advisory department is also available to assist you.
The M&A Selling Process
Understanding Your Goals
We start by meeting with you and possibly your advisors to fully understand your future plans. This could include:
Needing capital to support growth.
Requiring expertise to scale the business.
Looking to partially cash out.
Preparing for retirement without family succession.
Supporting family successors with capital or guidance.
Responding to interest from competitors.
Navigating industry consolidation.
Adjusting to marketplace changes that you cannot or do not wish to fund.
Seeking a new direction in life.
Our priority is to grasp your situation completely.
Reviewing Your Options
Many options must be considered, and H3K will guide you through them, including:
Is it the right time to sell?
Who are the potential buyers: strategic or financial?
Can you raise capital?
Should you consider going public?
Will you need to stay involved post-sale, and if so, for how long?
What are H3K’s fees? (Usually no upfront fees!)
How is your company valued?
Valuation
H3K can help determine the value of your company, addressing questions like:
Is it worth investing in a formal valuation? (Typically less expensive than $50k!)
What multiples apply to your industry?
What valuation methods or rules of thumb are relevant?
How important are assets?
Are gross sales relevant?
What tax implications should be considered?
Creating a Strategic Plan
Failing to plan is planning to fail. Our M&A team will craft a tailored action plan, addressing:
Which buyers to approach first.
How to maximize the sale price.
How to foster competitive bidding.
How to maintain strict confidentiality.
How to prepare compelling marketing materials (deal books).
Networking and Marketing the Sale
H3K is one of the largest and most successful business sale organizations nationwide. Our M&A approach includes:
Targeting strategic buyers first, then financial buyers, followed by open market outreach.
Creating competitive offers to secure the best price.
Qualifying and vetting potential buyers carefully.
Meetings with Prospective Buyers
We often attend meetings or calls with buyers alongside you, preparing thoroughly beforehand and debriefing afterward. We help you:
Engage with only the most qualified buyers.
Navigate conference calls and face-to-face meetings.
Share essential but limited information to protect your interests.
Soliciting and Reviewing Letters of Intent (LOIs)
H3K works closely with you and your advisors to evaluate LOIs and select the best buyer, considering:
Which buyer offers the strongest proposal.
The form of consideration: cash, notes, earnouts, stock, escrow.
Financing structures such as senior debt, mezzanine, or secondary financing.
Non-solicitation and “no-shop” provisions.
Negotiating the Sale
Our in-house training equips us to expertly negotiate on your behalf. Since many buyers are professionals, having a skilled negotiator is critical. Topics include:
The never-ending nature of negotiation.
What should be included in the LOI.
Timing for drafting definitive agreements.
Due diligence timelines.
Payment responsibilities for attorneys and accountants.
Whether audits are necessary.
Due Diligence
Half of all unmanaged deals fall apart during due diligence. H3K will coordinate and manage this process, keeping all parties aligned. Key points include:
Identifying required information.
Determining where due diligence occurs.
Handling requests to exclude intermediaries, attorneys, or accountants.
Avoiding unexpected concessions during the process.
Closing the Deal
After due diligence, we work tirelessly to finalize your transaction. This involves:
Reviewing and negotiating final agreements.
Coordinating financing follow-up.
Arranging real estate sales or lease assignments.
Timing notifications to key employees.
Facilitating wire transfers.
If you’re ready to explore your company’s potential through mergers and acquisitions, H3K’s experienced team is here to guide you every step of the way.
If you have any questions throughout the process, please don’t hesitate to ask. With H3K’s expert guidance, buying and owning your own business can be a rewarding and successful experience.
