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› Mergers & Acquisitions - Private Equity Groups


Private Equity Groups

BizAdvocates.com maintains active relationships with numerous Private Equity Groups, Transactional and Tax Attorneys, Key Lenders and CPA firms that are involved in M & A transactions. A Private Equity group is a collection of high net worth individuals or companies and/or other investment groups. The managing staff of the PEGs use our services as finders, qualifiers, and guides  to enhance their time investment in a specific search for the ‘right’ business to add to their portfolio of investments. When their sincere interest is established, we become the trusted dealmaker representing our Exiting Party client. Part of our job is participation in their ‘braintrust’ of individuals / advisors who have the common goal of discovering the best use of our client’s company to maximize the synergy that may exist with companies they already own or wish to acquire.

We contact PEGs to introduce a client we believe is a good match for them and they approach us when seeking to acquire a specific business type and/or a business in a geographical area where we are focused. We market to each other in industry meetings around the country. We are often complimented on our pro-active stance in regards to current third party appraisals, organized client financials and operational information which we are able to provide them promptly. PEGs are bottom line focused and appreciate our due diligence expertise. Many are seeking relationships whereby the option exists for the current owners (our clients) to remain employed by the new ownership entity for transitional and practical reasons. This allows retirement to become more gradual and can have some exiting party tax benefits as well. It also can be ideal for the adult children who may be employed by the business. There is a keen interest among some PEG management in physically moving (a lifestyle change) from the larger ‘corporate’ world to the ‘real’ world of smaller and mid market businesses located in smaller communities.

We use the same tools in representing larger businesses as we use in smaller ones. In fact, we have grown our company significantly by adapting the procedures, due diligence and skills used in large M & A transactions and applied them to smaller business transfers to create a reputation for competence at all transaction levels. The common thread is that we focus on working with profitable parties we respect and enjoy being with regardless of their business size. Since we limit the number and types of businesses we agree to represent, this puts us in the enjoyable position of working only with those who share our core values whether they be exiting or entering parties. We opened our Minnesota office in 2008 to be closer to the PEG community and their advisors. An added bonus is the Midwest is also an area where entering parties are very interested in relocation to the Western States to improve their lifestyles.

We are often asked “what is the difference as Buyers between a large competitor company and a PEG”? There are few hard, fast rules to follow but our experience is a larger competitive company is almost always a ‘wholesale’ buyer which is just common sense and can be a difficult problem to resolve.

A PEG is more likely to have more value for an Exiting party’s employees, the actual product or service, transitional guidance, opinions / experience, and reputation. They are less likely to consider moving the company initially. A PEG is generally an experienced entity prepared to pay more for a company that they believe will continue its current success with significant future growth linked to the management tools and other benefits they are prepared to provide. Thus, PEGs are more likely to seek a fair compromise pricewise as compared to the larger industry competitor who may respond to most invitations to look but will actually only close those transactions that represent under market bargains or desperate Exiting Party situations. A PEG is usually a suitor looking for a great match.

An industry buyer may become a bully in the middle of a transaction with few true concerns for the other party. Larger competitors may fail to disclose debt or legal issues that create lending problems which may derail a pending closing at the last moment. The positive side is an industry competitor usually understands the business completely thus requires a shorter decision making timeline and sometimes a less intense transition period assuming there is a positive match of the two company’s cultures.

Our M & A clients often do not wish to have their companies publicly advertised so they may be absent from our web site advertising. If you wish to obtain further information on specific M & A activity and/or businesses, please complete the form provided below. Feel free to or Call at (406) 245-8035 with any questions.

Jerry and Mendy Tippet

“When a buyer is asked to complete a company’s qualification forms, it’s just good common sense to do it if you are at all interested in their client’s business. From what I have seen, there are far more qualified buyers than there are qualified businesses. The qualification forms are a way of getting to the top of list of good prospects quite easily… a great way to put your best foot forward without a lot of effort.

A quality firm like BizAdvocates just wants to know they have a quality prospect whose financial means is in the ball park for a likelihood of a possible transaction. In our case, Joe and Sandy used their experience with other industry professionals to help us buy the company we inquired about initially with better terms than we expected and better tax advantages for the owners which created a win-win for all.”

Buyers - Jerry and Mendy Tippets
a N. Idaho based Manufacturing Company
Joe and Sandy Camp - each a BizAdvocate
represented the Exiting Party in the 2009 transaction
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Work Hard!……Live Wisely!……Exit Skillfully!
Our Business Focuses Solely On:
  • The Details of an Efficient Exit Strategy
  • The Sale of Profitable Businesses
  • Consulting on Master Franchise Relationships
  • Capital Solutions to Improve the Transaction
    • Bankable Business Plans
    • Third Party Lending
    • Working Capital
    • Inventory Floor Planning
    • Secured Seller Financing
      (when enhancement requires)
  • Key Relationships with Third Party Tax and Legal Advisors
  • How To Properly Acquire A Business
View Joe Camp's profile on LinkedIn