Due Diligence
Due diligence is critical as you consider an investment. Our experienced M&A due diligence professionals analyze a wide range of financial, IT, commercial, and operational issues and objectively deliver their findings, including risks and opportunities that bring you further clarity. Whether you need expert analysis from the buy-side or sell-side, the information and recommendations from our due diligence team help mitigate risk, clarify potential return on investment, and ensure the agility to efficiently close deals.
Sell Side Advisory
Selling your business represents the culmination of years of effort by you, your management team, and your staff. For the sale of your company to meet your strategic goals and truly be successful, price, strategic fit, and chemistry must be aligned. Burr Ridge Advisors can help guide you through this process and find right buyer.
Our multidisciplinary team of experts follows an established five-step process to create a competitive market and maximize value when selling your business:
Step 1: Business Valuation
The business valuation process involves a comprehensive review of the operational and financial performance of your company. We assess your company’s strengths, opportunities, and acquisition potential; we also identify obstacles that could impede a smooth and successful sale. Because our team has both firsthand M&A experience and valuation expertise, we produce highly accurate opinions of value for each of our client companies. In the process, we gain intimate company knowledge that is vital in developing the right strategy for selling your business.
Step 2: Strategic Planning
During the strategic planning phase, we determine how best to present your company to the market. Drawing on the knowledge we’ve gained through the business valuation process, we establish a marketing strategy, outline the timing of key events, and determine how best to present the unique characteristics of your company. We also conduct an internal due diligence to ensure we know how to address any issues ahead of time. We conduct independent research to compile a comprehensive buyer list for your approval.
Step 3: Confidential Marketing
We create a competitive market for selling your business by customizing our sales and marketing process to your specific goals, and we maintain your desired level of confidentiality throughout this process. We develop a variety of marketing materials—including a confidential profile and a confidential information memorandum (CIM)—to ensure that your company is presented to prospective buyers in the most effective manner. Our marketing materials meet the highest standards of financial accuracy, marketing insight, and professional presentation.
Step 4: Deal Making
Once we’ve identified the best buyers, we coordinate management presentations and solicit bids in the form of a Letter of Intent (LOI). Our philosophy is to negotiate in detail the LOI to keep legal fees low and vet out any problems ahead of time. Our finance and tax experts evaluate the technical components of each buyer’s bid, and our experienced deal team then negotiates the terms of the offers until they meet your strategic goals.
Step 5: Due Diligence & Closing
Once we have negotiated a signed LOI with the selected buyer, we manage the due diligence process on your behalf. During due diligence your business undergoes intense scrutiny as the buyer carefully reviews your company’s operations and financials. Our due diligence experts oversee the data collection process and work with you to fulfill information requests made by the buyer. Our deal team works with your other advisors, such as your attorney and accountant, to properly structure your transaction, negotiate a final purchase agreement, and address issues presented by the buyer during the due diligence process. Once due diligence is complete, our team organizes all the closing documents and arranges the transaction closing.
Buy Side Advisory
Acquisitions are often an important part of a company’s growth plan. Burr Ridge Advisors can help your company conceptualize and implement an effective acquisition strategy.
Our multidisciplinary team uses a five-step process to help you identify and realize business synergies through acquisition:
Step 1: Strategic Planning
We begin by assessing your available options and the viability of an acquisition growth strategy. After obtaining a thorough understanding of your business, we develop an acquisition criteria based on your operations, customer base, vendors and finances. We conduct a targeted acquisition search confidentially contacting target companies and other brokers. Finally, we begin contacting the most appropriate targets while preserving the level of confidentiality you require at all times.
Step 2: Deal Creation
After narrowing the field of potential acquisitions, we lead discussions with selected targets and perform preliminary due diligence and valuation analysis. Once we’ve identified the right acquisition target, our valuation professionals determine an appropriate value for the target. We also work with your other advisors to negotiate and structure a proposal for the target.
Step 3: Deal Execution
Because we have due diligence experts on staff, we can maintain deal momentum after you have signed a letter of intent. We coordinate with your operations diligence team and other advisors to structure the deal, conduct detailed negotiations, and execute contracts. In this way, we ensure that the diligence timetable is maintained, and thereby increase the chances of a successful closing.
Step 4: Financing
We can help you determine the optimal financing strategy, prepare a financing package, identify and contact financing sources, solicit terms, coordinate financing due diligence, negotiate a financing contract, and coordinate its close.
Step 5: Strategic Integration Planning
An acquisition is not complete until you can realize the full value of the synergies between your company and the target company. We can help you develop a Strategic integration plan that addresses corporate restructuring, human resource and culture integration, financial statement consolidation, and technology and operations integration. We can also coordinate with our Post Merger integration consultants to development a more in depth Post Merger Integration plan.
Debt Financing
Raising capital for growth or a restructuring is a critical business activity, yet one that most companies do infrequently. We can determine your company’s optimal capital structure and then develop a strategy to secure appropriate financing. Our extensive network of contacts includes senior, mezzanine, and subordinated debt providers. Our national network gives you access to the most cost-effective and viable financing solution.
As we assess and develop your financing strategy, we will:
- Identify appropriate types of capital
- Assemble a financing package
- Select appropriate capital providers
- Market the transaction
- Negotiate the terms and structure of the financing
- Manage the due diligence and closing