Maximize Total Transaction Value for Shareholders No matter what the transaction type, Periculum helps its clients create
maximum value for shareholders. Transaction pricing is clearly one
of the most important components of value, but there are also many
other aspects which make up the total consideration of a deal. We not
only help our clients get the best price possible, but we negotiate
transaction terms which maximize the total transaction value and minimize
the forward risk.
• Transaction pricing – We
maximize the value of your business by carefully analyzing your
situation and creating a customized marketing campaign for you.
We create professional marketing memoranda and other materials
which drive interest from a multitude of parties. We then negotiate
on your behalf to ensure that competition is exploited and the
best price is received.
• Transaction
terms –In
addition to
price, we help you negotiate the other aspects of a transaction which
ultimately affect total value. We work with your tax and legal
professionals to minimize taxes and future liabilities of the transaction.
We also help you evaluate and negotiate the many terms which make
up the rest
of the
transaction.
Issues such as post-closing balance sheet adjustments, redemption
periods, representations
and warranties, registration rights, indemnifications and liability
baskets, deductibles, and survival periods all have a significant
impact on net
cash proceeds and the amount of risk held by shareholders. Our team
has an in-depth understanding of these types of issues, and we devote
significant
attention to such transaction terms in order to make sure you come
out with the best possible deal.
Communicate Your Company’s “Story” Each business is a unique economic enterprise. Organizational
and capital structures, management teams, products, markets, etc. are
all variables
which need to be clearly communicated and understood by the deal community.
In every engagement, Periculum’s professional memoranda and other
marketing materials will communicate your unique “story” in
a way that all interested parties will understand and appricate.
Maintain Transaction Confidentiality We work hard to maintain the highest possible degree
of confidentiality with every step of our marketing process in order
to avoid any business
disruptions with employees, customers, or suppliers. In all sale engagements
we ensure that everyone who receives confidential information first signs
a Confidentiality
Agreement, and if competitors are included in the process we make sure
to alter our approach and marketing materials accordingly. We realize
that sensitive information in the wrong hands can be damaging, and
we work hard to ensure that the transaction process doesn’t compromise
your business’s confidentiality.
Bring Focus and Efficiency to the Transaction Process One of the biggest transaction risks is the time it
takes to get the deal done. The quicker a transaction closes, the less
chance there
is for outside forces to influence the outcome. Industry changes, internal
business developments, and outside market or geopolitical changes can
all prevent a deal from closing. Our marketing process fosters the
momentum necessary to speed the deal along— without compromising
quality or results.
Reduce Workload for Management and Shareholders Just because our clients have decided to proceed with
a transaction doesn’t
mean ordinary business stops. In fact, it is essential that our clients’ businesses
continue to meet their financial and strategic targets in the midst
of a transaction. Variances from communicated projections can
have material impact on transaction timing and value. Even when management
has the required skills to “go it alone” in
a transaction, they often find that they do not have the time or resources
necessary. Trying to conduct a successful transaction marketing campaign
while running day-to-day business usually produces unsatisfactory results,
as both
tasks end up neglected.
Although there will always be a time commitment and
a degree of effort required from management during a transaction, Periculum’s goal
is to minimize the workload to the greatest extent possible. We believe
deal making is a collaborative process, with investment bankers and business
owners working together for maximum results, and we strive to make this
process as smooth as possible for both management and shareholders. Along
with the organizational, administrative, and research resources which
we provide to a marketing campaign, we shield our clients from the sometimes
emotionally intense discussions which often occur during a transaction.
Our professionals have the skills and experience to push negotiations
to their limit, and yet they know when to compromise to ensure transaction
closure. The negotiation process allows Periculum to obtain better pricing
and terms than our clients could otherwise accomplish on their own. Likewise,
it keeps our clients an “arms length” away from all parties
so that relationships stay in tact.
Close the Transaction Getting a deal closed is the most challenging part
of any transaction. Contrary to what some might think, deal closure does
not happen naturally— especially
when buyers have been pushed to the edge from a pricing perspective.
When issues do arise during a transaction,
our team of professionals will guide you and make sure your deal still
gets done. Our many years of experience means we have seen nearly every
possible type of “hiccup” that can occur, and we are experts
at working through such events to make sure they don’t become
deal-killers.
