If the buyer of your business is likely to be another company or a private equity group, the Murphy mergers and acquisitions team will be a major help. You’ll be facing negotiators with significant experience and expertise in acquiring privately held companies. Having our team on your side gives you matching firepower.
Our team maintains contact with hundreds of private-equity groups that have raised millions—even billions—of dollars from pension funds and institutional investors for the sole purpose of investing in privately held businesses such as yours. In addition to looking for platform companies that fit their published investment strategies, they look for add-on acquisitions for companies already in their portfolio. Although many private equity groups are interested in purchasing 100 percent of companies, some also make recapitalization investments where the present owners sell only a portion of their stock and remain as top management of the company with a planned future retirement. This allows you to take some cash out of your business now and sell the balance of your ownership when you retire.
In addition to the many corporate buyers who maintain contact with our mergers and acquisitions division, we have the training and experience to identify other corporate buyers who may be interested in acquiring your business. We know how to make confidential inquiries to corporate buyers without disclosing your company’s identity.
Our experience leads us to believe that an auction process doesn’t maintain the confidentiality most sellers desire. It can reduce the implicit value of your company if so many buyers look at your business that it becomes over-shopped. We prefer to help even the most jaded corporate buyer discover the untouched diamond in your business. Only experienced business mergers and acquisitions experts can accomplish this effectively.
Although most corporate buyers are interested only in buying a company outright, others are interested in forming strategic alliances that may also involve an equity investment with a formula that allows them to purchase 100 percent at a later time. We can help you make contact and negotiate a strategic alliance.
Wealthy individual buyers
Many wealthy individuals form groups that function much like organized private equity groups. Wealthy individuals often bring significant management skills, as well as access to capital beyond their own financial capacity. Most are interested in making investments in privately held businesses and being involved at the board level to help the company with financing, strategy, and marketing. Because they frequently have significant experience acquiring businesses, our mergers and acquisitions team can help you level the playing field.