The Mergers and Acquisitions business is at times like every other business… it’s all about who you know. Knowing the people who can help you do business is crucial. In any market we operate in, we cultivate relationships and develop synergies with the other professional people in town that matter. Our local networks look like this:
Every bank has customers who would like to increase their revenue by making strategic acquisitions. When we bring those deals to the table, the bank makes money in many ways, including loan origination fees and increased daily deposits. A win for everybody.
Every accounting firm has clients who plan to exit and sell. We work with accounting firms to see that when their client exits, the accountants get more than just a handshake. A win for everybody.
Every business law firm has clients that need to grow. Some need to re-capitalize. Some need to acquire competitors. We give law firms an arsenal of tools that help them advise clients not just on the legal side but in many other practical ways. A win for everybody.
Every sales manager measures his performance account by account, battling with competitors for each one. Except when we can sell his company another company that has hundreds or thousands of similar accounts. Again, everybody wins!
We work at developing these relationships on a daily basis, not just when we have something to sell them.
Every company, no matter what industry they’re in requires the professional services of the other four. We’re the straw that stirs the drink… At the local and regional level, these are the relationships that help us get deals done quickly and quietly.
Regardless of where you stand on the political spectrum, Bernie Sanders was right about one thing: Ninety percent of the wealth in this country is owned by one percent of the people. Where does that money go?
It goes into funds. Hedge Funds, Private Equity Funds, and Family Offices. These funds constantly raise money from high net worth individuals and other investment groups. If a company is too big or too specialized to be swallowed by a local acquirer, it is probably a good candidate to be acquired by one of these larger groups. We have regular interaction with most of them. The vast majority of these funds are headquartered in Manhattan, a short cab ride from Madison Square Garden where we entertain many of them on a regular basis. They have billions of dollars at their disposal and they are in acquisition mode every day of the year.
The combination of our highly organized local relationships all over the continent and the many multi-billion dollar funds we know in New York gives us a great platform on which to do business. But where we excel is with strategic acquirers. Hedge funds are looking for the quickest return they can get. Most of their investments are in highly liquid instruments like the stock of publicly held companies. Many private equity groups and hedge funds look at hundreds of deals a year and may do two or three, if that. If you don’t know who the active PE groups are they can really waste your time.
The people we most like to do deals with are strategic acquirers. People who are already in the same business as the company we represent. They can quickly evaluate a deal because they know the business. The principals are on the same page from day one. They are probably already aware of each other. Due diligence happens quickly because they know what to look for. Deals that go under contract almost always close. Strategic acquirers are decisive in their pursuits.
The kings of this group are the Fortune 500. And everywhere they are, so are we. If you’ve built an empire and you are looking for an exit strategy, we understand this game. We’ll get you in front of the right people quickly.