Closely Held Means it’s Real Money
Our clients have traditionally spent their adult lives building a business that is not only their legacy, but in many cases their future financial security. With that goes pride of ownership, cost management, and the emotional aspects of selling a business.
BVCA is sensitive to those dynamics based on our experience with similar situations in a variety of industries.
After years of extremely hard work and significant sacrifices, it’s about the rewards that are realized at the closing table — the fruits of a lifetime of your time and efforts — that makes a difference. We will remain at your side as a trusted advisor from the beginning of the process to the conclusion of document signing and beyond to finalize post closing matters.
- First listen carefully so we truly understand your short and long-term financial and personal goals
- Provide counsel on your options and provide objective facts on the implications of each option
- Collaborate closely with other outside advisors before the transaction, to coordinate any prior planning and work to minimize unexpected fees or outcomes
- Bring a holistic approach to transaction tax planning, because the final structure has a direct impact on how much the business stakeholders will realize at closing
- Be relationship rather than transaction-based — we advise clients to consider walking away from a potential transaction if the relationship or transaction does not appear to truly represent their goals
BVCA offers direct access to the resources and experience of Houston’s largest independent accounting firm, Briggs & Veselka, for transaction specific tax implications, pre-marketing seller due diligence valuation and other professional services that are part of the process. Learn more about Briggs & Veselka’s Transaction Advisory Services team.
Our focus is on the middle market — generally companies with operating earnings from $1,500,000 to approximately $20,000,000. Should your company not be in this range, we would gladly meet with you to discuss your current options and also the process for improving your growth and earnings.
Over time, we have found the valuations and buyer competition are much higher for companies that reach these earnings levels, therefore, it is in your best interest to develop strategies to increase your company’s value to the extent it is possible. We are fully prepared to assist you in properly positioning your company to achieve an improved valuation upon your exit.
Energy & Petrochemical
Transportation & Logistics
Food & Beverage
How We Help
BVCA works with entrepreneurs in selling their businesses or making strategic purchases of new product lines or other companies. We have successfully represented hundreds of owners in transactions completed with strategic buyers and large private equity firms – internationally.
BVCA invests time at the outset to understand your goals and how a strategic acquisition can help add scale, reduce costs, gain technology or market share.
We utilize a unique proprietary filtering system to evaluate quite quickly if the targeted acquisition has the preliminary necessary characteristics to have the potential to add value and has certain features that align with buyer’s business model.
While the approach is customized for each company we work on management’s behalf to:
- Define parameters and the sector of interest and desired characteristics
- Research acquisition targets
- Provide confidential contact with the targets to obtain and execute a non disclosure agreement allowing the process to advance
- Prepare a preliminary transaction valuation once information is exchanged
- Build the terms structure leading to preparation of either an indication of interest or a more formal letter of intent
- Negotiate agreements along with legal counsel, monitor due diligence process through the transaction closing
- Assist with post transaction integration as needed
The sale of a closely-held business can be a daunting process, as it involves both rational and emotional considerations. For many of our clients, their business is both their primary financial asset and something to which they have devoted their entire adult lives.
You will always have the final control and discretion over the decision to move forward on any transaction.
Our approach is that in a sell side transaction, its real money—yours. And we will use our experience and insights to optimize what goes into your pocket by negotiating and structuring the transaction to best meet your objectives.
The standard process employed in the sale of a business is as follows:
- Meeting with company owners, determine goals and expectations, provide a detailed outline of the process and how to prepare for the most efficient process leading to a successfully executed transaction
- Company data collection, preliminary valuation and market share analysis and begin building a protected virtual data room to house essential documents
- Market analysis, sector buyer activity and level of acquisition interests
- Define the transaction objectives and preliminary company valuation
- Develop list of targeted potential private equity groups, family offices and strategic acquirers based on industry familiarity and after obtaining owner’s approval to approach them
- Prepare a Confidential Company Memorandum and an Executive Marketing Profile for targeted marketing purposes
- Obtain signed Confidentiality Agreements and begin process of providing the Confidential Company Memorandum to interested parties and seeking indications of interest
- Negotiate and enter into a formal non-binding letter of intent with the selected party
- Manage the due diligence response process via the data room and arranging of conference calls with the various constituent groups on the acquisition side
- Participation with transaction legal counsel in the negotiations involved in finalizing the definitive closing documents
- Assistance with post transaction closing issues necessary to fully complete the transaction requirements
RECAPITALIZATION AND GROWTH CAPITAL
Additional services we provide may involve corporate recapitalizations and growth capital. Transactions of this nature may include a partial sale of equity, preferred stock or subordinated debt to a:
- Institutional investors
- Management buyout
- Employee Stock Ownership Plan
- Other similar transaction
In today’s market, a recapitalization can be an attractive alternative for an owner to diversify their risks associated with a concentration of wealth completely encapsulated within a privately held company. Due to the considerable amount of capital available in the market, a quality company no longer has to consider an “all or nothing” sale, as there are many options.
Based on understanding your objectives, we can discuss the broad range of alternatives available to you.
Our investment bankers have been involved in numerous transactions as advisors domestically and internationally – with both sell-side and buy-side advisory engagements.
Senior Managing Director
(713) 353-1924 Office
(713) 805-9638 Mobile
B&V Capital Advisors
9 Greenway Plaza, Suite 1650
Houston, TX 77046
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