If
you are like most company owners of businesses
with $7-$75 million annual revenues, you do not spend full time restructuring
your company's finances or raising capital.
If you are like most
company owners, you have never sold a
business before and will likely not sell another business.
Consequently,
you may
not be completely familiar with the various options available to you.
Many business
owners have as much as 80% of their net worth tied up in their business and yet
it is remarkable that when most reach a point that they want to either finance
or exit their
business, they have no idea as to their options and opportunities.
Many are
seduced by "advice giving organizations" that promise a world of
financial and/or exit
planning, rich and plentiful buyers, big sale prices, "unique and
advantageous" borrowing terms, quick action, liquid
wealth, and eternal nirvana.
What is all too
often delivered, after the collection of an aggressive retainer fee, is an
elemental business valuation that tends to be boilerplate at best. The sad
result is that the business owners are oftentimes in no better position than
they were before this whole experience.
Business owners
should be exposed to a wholesome lineup of options and opportunities that
reflect reality and fresh, timely insight.
Accountants,
attorneys, industry experts, and other professionals that surround these
individuals are often not knowledgeable enough or properly prepared to
adequately assist.
Capital
Markets Group, Inc. provides a complete, crisp, educational experience that is custom designed
for those clients who prefer to make informed decisions based on real
alternatives that are fully explained without paying exorbitant up-front fees.
Capital
Markets Group, Inc. focuses on the CHOICES that a business owner really has. For
instance:
-
Selling
the Business
- Re-capitalization
to fund growth opportunities
- Management
buy-out options
- Partial
equity transfers
- Aggressive
industry positioning
- Succession
planning
- An
acquisition strategy along with the resources to fund it
- Conversion
to cash of the owner's net worth in the company while the owner continues
to retain operating control as well as voting control of the company stock
with the owner not having to give either a personal guarantee or lien
against the owner's personal assets
- Third
party financing (consisting of one or more of the various alternatives
listed above) of a management buyout
- Financing
the orderly transition of company ownership from one generation to the
next generation even in those cases where the next generation (due to age,
experience or other considerations) is not presently capable of taking on
day-to-day operations or financial control.
The unique
quality of our services is the combined skill-sets and experience base of our
team. Each individual
has more than 15 years of hands-on experience in all areas that really matter; i.e.,
operations, marketing, finance, merger and acquisition activity, wealth
management, communications, strategic and tactical planning,
and business ownership.
The core issue
is that we can make a very real and very profitable difference in how Business
Owners transition themselves into areas of opportunity that they have never
realized existed or of which they have only dreamed.
Whether you're financing your
company's growth, wanting to convert your equity into cash, helping your management team
find enough capital to buy your company from you, looking for better borrowing
conditions, wanting to sell your company to a qualified buyer for the highest price,
wondering what the value of your company is, or any other reason you may have to inquire
about what your options are . . . you need to have a complete analysis of what may be best
in any given circumstance.
Interest rates vary among lendors.
Also, lendors vary from the local bank to international asset-based lendors to
national sub-debt lendors or professional funds that provide combinations of equity,
senior debt, mezzanine financing and subordinated debt.
Potential
buyers of your company also
vary in their criteria. Some buyers want 100% ownership while others insist on only
a minority interest. Some buyers will pay 100% cash or publicly traded stock {which
has significant tax advantages for the Seller} while others may want the owner to carry a
small portion of the selling price as a note.
Some buyers prefer to bring in their
own management team while others insist that the present management team remain with an
equity position granted by the buyer as an incentive.
Additionally, there are various ways
to structure a deal such that each deal structure may be
different
yet still
equivalent
to another deal structure. For instance, a company can sell for $10 million or
$5
million and each deal may, in fact, be financially the same.
Alternative Analysis is important
BEFORE you decide what to do. Otherwise you may proceed in a direction that is based on
limited knowledge and therefore meet with less than optimum results.
Also, since there are many variations
to any alternatives you may face in real-life situations, it is important to have
professional advice and counsel from someone who spends their full time developing,
negotiating and reviewing different deals and has knowledge of what you don't know.
Then you can make decisions based on full information and, of course, obtain the best
results.
With professional advice and counsel
guiding you through Alternative Options, you can experiment with alternative
scenarios and understand their results without running the risk of alienating the other
party to the point where they break off negotiations and you loose your objective.
Capital
Markets Group, Inc.'s
27 years of
experience as well as the experience of the individual team members gives us unique
knowledge based on real life situations from which we have learned how to help you in
structuring realistic and preferential alternatives and options for your company.
We
work with buyers, lendors, investors and family transition specialists throughout the world. Our experience gives
us the intimate knowledge of hundreds of professional buyers, investors and lendors and
allows us to provide you with the best alternatives to reach a well thought out and
executed solution before you commit yourself or your company to action or
expenses {see
How We Work}.
