FREQUENTLY ASKED QUESTIONS
HOW
DO YOU ASSIST COMPANIES TO MAKE AN ACQUISITION?
There are really two ways
of proceeding.
The first method of
proceeding is intended for clients who are actively seeking to make
acquisitions. These clients entrust us with the mandate of looking for
a company that meets their criteria. This is an area where we have been
especially successful.
The second method of
proceeding is intended for clients who are not actively seeking an
acquisition but who would be interested in doing so IF THE CORRECT
OPPORTUNITY PRESENTED ITSELF. In this case, we enter their acquisition
criteria into our private database and then from time to time we compare
the information with our stored information concerning suitable
prospective vendors. Fortunately, our long standing reputation allows
us to also access many other databases in our extensive network of
mergers and acquisition specialists.
WHY
SHOULD I USE AN INTERMEDIARY TO SELL OR BUY A BUSINESS?
When an entrepreneur is
selling his business it often represents to him a very important
personal asset. It is often the result of a lifetime of hard work and a
great deal of personal effort, pride and satisfaction.
When a company is only
selling a subsidiary or division it still nevertheless represents to the
founders or principals a major challenge. The sale may have a
significant impact on the company’s balance sheet. It also often
affects the personal careers of many longstanding loyal employees. In
either case, whether selling an entire business or simply a division,
once the transaction has been concluded there is no turning the clock
back. As a result, it is important to minimize the potential for
mistakes. A mergers and acquisition's specialist can provide the client
with years of practical experience in order to increase the probability
of successfully completing each step of the sale or purchase process.
The merger and acquisition
specialist is often in a better position than the buyer or seller to
evaluate certain situations. One such example is to ascertain that the
expectations of the buyer and seller are realistic.
The merger and acquisition
specialist also acts as a buffer between buyer and seller. This
prevents conflicts which could arise when emotions run high. This
ensures that the channels of communication remain open between the
parties who often in the heat of the moment loose sight of the overall
objectives.
The merger and acquisition
specialist helps smooth out the negotiating process thereby allowing the
management team more time to devote to the running of the business with
a minimum of disruption.
Back to Top
CAN
DML GUARANTEE MY BUSINESS WILL BE SOLD FOR THE ASKING PRICE?
No. However, our clients
can rest assured that we will accept a mandate to sell only if we are
convinced that the asking price is reasonable. We only accept
assignments which we believe have a reasonable probability of being
successfully completed. We are not in business to waste your time or
our time.
With DML, there are no
dazzling claims and no false promises. The only promise we do make is
that we will put our resources at your disposal and devote all
reasonable efforts to help you achieve the best possible deal.
Back to Top
HOW
CAN I BE SURE OF GETTING THE BEST PRICE FOR MY BUSINESS?
The best way is to
identify a "qualified buyer". This is a buyer for whom your business
will add value and fit into the buyer's strategic planning. This type
of buyer is usually prepared to pay more for your company than any other
type of buyer.
The key element of our strategy is to have realistic and honest
negotiations with the potential buyers. DML’s contribution in this area
can be decisive. DML will employ creativity and imagination in an
ethical and businesslike manner in order to meet the requirements of
both the seller and the buyer. In the real world a transaction can only
be concluded when both parties are in a win-win situation. Although
fools are born every day they rarely have sufficient money to pay an
outstanding balance of sale.
Back to Top
WHEN
IS THE RIGHT TIME TO SELL OR BUY A BUSINESS?
TIMING IS EVERYTHING. You
can always wait, but you cannot always get the right price. The right time to act
requires an exhaustive analysis of all the facts of the business, the
industry in which it operates, and the business, personal and family
needs of the owners.
Back to Top
