Among the fastest ways for a company to grow entity value is through accretive acquisitions. With a well-executed acquisition strategy, companies can realize significant value in the first year, which often accelerates in the years that follow.
Lennar Corporation recently announced the acquisition of CalAtlantic Group. Together, the companies form the largest home builder in the U.S.
Bloomberg reports private equity firms currently have more than $950 billion of capital waiting to be invested in the marketplace.
In this favorable market, how do sellers contemplating an exit from their business decide whether to pursue an M&A sell-side transaction or the formation of an Employee Stock Ownership Plan (ESOP)? They don’t. Instead, they run a dual track process which provides knowledge of possible outcomes simultaneously. This allows the seller to make the best choice for his/her situation based on actual offers and company specific options.
Successful transactions require important decisions about rebranding— if, when and how to transition an acquired brand. Unfortunately, these brand strategy considerations are often overlooked or only considered after the acquisition. This is partly because there is a lack of relevant historical data for analysis.
PCE Investment Bankers, a leading financial services firm for mid-market companies, is pleased to announce the sale of Williams Electric Company (WEC) to Parsons Corporation. WEC specializes in control system integration, electrical and general contracting, and energy infrastructure solutions. Customers of WEC include U.S. federal government agencies and facilities, including the U.S. Army Corps of Engineers (USACE). PCE served as exclusive financial advisor to WEC.
One of the key sections of any purchase agreement is the Reps and Warranties section. The term “Reps and Warranties” refers to all the assertions that the buyer and/or seller make in a purchase and sale agreement. Both sides take a leap of faith in the Reps and Warranties section, assuming that any claims or assertions made by the counterparty are accurate and true. Think of the Reps and Warranties section as a safety net for both sides. It ensures all that is being sold is being bought and all that is being bought is being sold.
Business owners eager to sell their company are wise to take time to assess their business operations before embarking on the sale process. Prospective buyers want to understand what they are purchasing, and will consequently scrutinize every facet of your business. This will include financials, corporate documents, personnel records, contracts, patents, licenses, etc. Taking pains to perform your own due diligence prior to going to market is the best way to avoid headaches during the buyer’s due diligence phase.