Mergers, Acquisitions and Divestitures
Though many entrepreneurs dream of an IPO, history says a company's successful outcome is more likely to be a sale. Traditionally, a dozen technology companies are sold for every one that goes public, and that ratio is likely to remain unchanged going forward. Most successful venture exits result from sales to competitors, technology buyers or industry consolidators. Likewise, with sole-proprietor and family-owned businesses this is often the case. SiVal carefully manages the M&A process from start to successful exit. On the acquisition side, SiVal represents clients seeking to purchase other businesses at a fair value, whether it is a public company acquiring technology or a private firm executing a roll-up strategy. SiVal specializes in representing the seller in Mergers & Acquisitions. The process starts well in advance of the actual transaction, with SiVal advising companies on issues including positioning for sale, valuation and timing. The Advisor's job is to maximize the value of the transaction, isolate management from the more difficult phases of the negotiation and allow them to focus on running the business. The process includes identifying prospects based on a number of strategic and financial factors, performing a representative valuation analysis, executing a competitive bidding process, working to select the optimal buyer, managing the due diligence process and doing our utmost to ensure that the transaction closes successfully.
Corporate Development
SiVal assists companies seeking to make acquisitions in order to complement a technology or product line, enter new markets or simply to provide growth in their existing business. We understand that such activities can be time-consuming for executives who also have a business to run, and so we provide a means of 'outsourcing' these corporate development activities. As a part of our service, we research target opportunities, initiate contact with decision-makers and determine their interest in a possible sale. If the response is positive we assist further evaluation, discussions, negotiations and, ultimately, closing a transaction. From our experience, both as executives and advisors, we know that often it takes time and perseverance to find the right strategic fit. We are willing to make that investment in working with you to ensure the optimal acquisition is accomplished. In one recent example, SiVal has been working with a client for less than a year to find the right enterprise to complement their growing business. Negotiations are underway with a candidate company, and when it concludes, this will be the second transaction that we have successfully arranged for this client.
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