Phase I: Preparation Stage
Ascend Capital Group’s (ACG) Merger & Acquisition process begins when an Engagement Agreement is signed. A successful analysis of your goals and requirements depends upon a strong working relationship among all the parties affected by the sale your company. In concert with your advisors, i.e. Board of Directors, Accountant, etc., ACG will help you evaluate your needs and concerns in order to achieve your vision while maintaining strict confidentiality. Following are the key steps for this process.
1. Market Research, Analysis, and Strategy
Serious buyers want documented, defensible evidence of your company’s income-generating potential. Your own financial projections over three to five years is desirable. A credible overview must include a complete analysis of trends within your industry, competitor’s strengths and weaknesses, and local and/or national influences on markets relevant to your industry.
2. Valuation
One of the key components of your business-sale strategy is the valuation – what your company is worth. A number of valuation methodologies are used today, and each is in compliance with the standards set forth by a variety of government organizations. Our valuations include a proprietary method of calculation of the discount rate used in the income value method. However, a strategic buyer may be willing to pay a premium beyond a standard valuation to acquire a unique competitive advantage your company may provide. Only an experienced professional can help you consider all the factors and possible methodologies to arrive at a maximum valuation. For the past 24 years, ACG has utilized the services of the expert staff of GCFValuation accredited appraisers that assist Intermediaries, Banks, CPAs, Attorneys and their clients, with complex valuation issues, independent valuation services, feasibility studies and fairness opinions for small to mid-market privately held companies.