Middle Market M & A: Handbook for Investment Banking and Business Consulting
Kenneth H. Marks
Format: PDF / Kindle (mobi) / ePub
In-depth coverage in a single handbook of the middle market based on the body of knowledge of the Certified M&A Advisor credential program
M&A advisors have an unprecedented opportunity in the middle market with the generational transfer of wealth and capital being deployed by private equity and corporate investors. Middle Market M&A: Handbook for Investment Banking and Business Consulting is a must-read for investment bankers, M&A intermediaries and specialists, CPAs and accountants, valuation experts, deal and transaction attorneys, wealth managers and investors, corporate development leaders, consultants and advisors, CEOs, and CFOs.
- Provides a holistic overview and guide on mergers, acquisitions, divestitures and strategic transactions of companies with revenues from $5 million to $500 million
- Encompasses current market trends, activities, and strategies covering pre, during, and post transaction
- Addresses the processes and core subject areas required to successfully navigate and close deals in the private capital market
- Includes content on engagement and practice management for those involved in the M&A business
This practical guide and reference is also an excellent primer for those seeking to obtain their FINRA Series 79 license.
loss of employees, slowed growth, operational difficulties, impaired brand equity, impaired reputation, and culture clash. The process used for postmerger integration often differentiates experienced, successful acquirers from value destroyers. The key is to find the right balance between speed and thoroughness. It is important to realize the potential synergies quickly, ideally within the first 12 to 18 months. However, executives often declare victory too quickly and rush to return to business
keeping so a buyer can trace all owner compensation. Business JWBT603-c05 Personal TABLE 5.2 Basic Preparation Steps for Business Transition or Transfer P1: TIX/b T1: g November 22, 2011 20:15 Printer: Courier Westford P1: TIX/b P2: c/d JWBT603-c05 QC: e/f JWBT603-Marks T1: g November 22, 2011 20:15 Practice Management Printer: Courier Westford 81 and high-performing advisors do not waste time on unrealistic opportunities. Common areas of disconnect between the advisor and the
20:16 Printer: Courier Westford THE M&A PRACTICE AND PROCESSES Letters of Interest Sometimes buyers will want to perform more due diligence or conduct meetings with the company’s management in advance of preparing a full letter of intent. At the same time, the seller may be reluctant to invest time meeting with buyers without knowing they are serious and are at least reasonably close with regard to their assessment of value. In these situations, the buyer may draft a letter of interest to the
investment criteria for a PEG seeking acquisitions in the lower-middle market: Niche manufacturers of industrial products or specialty services companies (B2B) Revenues: $5 million to $50 million EBITDA: $2 million to $8 million Companies that are leaders in their industries and have a high regional or national market share Diverse and stable customer base (customer concentration <20%) Strong management Geographical focus within the continental United States Most of the process in Figure 7.1 will
Westford M&A TECHNICAL DISCUSSIONS TABLE 12.5 Tax Rate Comparison Allocation Item Buyer’s Treatment Seller’s Treatment Inventory Fixed Assets Typically sold at cost—no gain Ordinary (up to original cost) Noncompete Training Deduct as sold 3-, 5-, 7-, 15-year depreciation 15-year amortization Deduct as incurred Goodwill 15-year amortization Ordinary income Ordinary income with payroll taxes Capital gain Note: Fixed assets can include real properties that may have depreciable lives of