Our extensive experience enables us to deliver a distinct service to our clients. We have been in hundreds of unique, yet similar situations as an advisor, investor or business owner. Our team was trained by leading global investment banks. We have collectively been involved in greater than 150 M&A transactions and financings worth in excess of $100 billion. Our experience as business owners and principals gives us broader perspective and transaction insights.
As Mark Twain said, “history doesn't repeat itself, but it does rhyme”. Although every transaction is unique, there are some commonalities found among every deal. Understanding the various groups involved and their respective motivations is central to a successful outcome for all parties. When it comes to transactions, we develop a deep understanding of three important aspects:
We Understand Acquirers
Value is in the eye of the beholder. Every acquirer or investor will view the potential of a given business differently. Some transactions achieve valuations that from the seller’s perspective may seem optimistic on a stand-alone basis. Some acquirers bring a unique ability to significantly improve the performance and/or valuation of a business. Other transactions are more limited strategically and are more financially motivated.
In addition to the fundamentals of business valuation, acquirers are concerned about the Deal Risk, the risk of investing time and money in negotiation and due diligence versus the probability of closing. They want to feel assured that they won’t encounter any surprises along the way. Trust and credibility are vital.
Our team is uniquely positioned to facilitate discussions with both strategic and financial buyers to minimize Deal Risk. Through our experience as private equity investors and business owners, we understand an acquirer’s concerns. In order to mitigate any perceived risk with buying an existing business, we provide proven solutions for a seamless transition.
We Understand Business Owners in Transition
In our experience, many financial advisors lose sight of a business owner's non-financial priorities. We recognize that business is ultimately a human experience. We understand business owners' priorities because we ourselves are business owners – every member of Valitas has been an entrepreneur. Each core team member has owned or managed a business, and many of us have successfully sold our own businesses. We appreciate the importance of the non-monetary aspects of a transaction, such as ensuring continuity for business partners and other stakeholders that helped build the company.
We Understand the Transaction Process
As business owners manage their business relationships, they can usually sense a wrong turn and see the next step coming. In such cases, they know exactly how to respond because they have seen that particular situation many times before. That’s how we navigate the complexities of an M&A transaction. We have done this hundreds of times. We’ve seen every move, counter-move, variation thereof and know what is likely to come next.
Through our experiences we have developed an affinity for the finer points of transactions, the delicate human elements that enable the negotiation to progress to closing, while reducing completion risk. In particular, our team understands how to maximize the value of a business in the eyes of both strategic and financial investors, creating competitive tension. We possess the negotiation and structuring expertise to ensure an appropriate allocation of transaction risk between buyer and seller.