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M&A Overview
This section of our site is intended to help potential clients better understand the M&A process. It reflects our experience that most business owners have little idea of the process, and yet want and deserve to be fully informed. If you would like to order our explanatory booklet “Selling Your Company – Essentials of a Mid-Sized Deal”, please click here and complete the order form.
Typical M&A Cycle
A typical Onyx M&A cycle is shown below. A variety of factors can affect the length of each critical period, but a complete cycle lasts on average between 9 and 12 months to sell a company, and 6 to 9 months to raise capital:
- Days 1 - 30 - Education & Assessment:
- Advice on the M&A process. We step you through every detail and issue to ensure you have full understanding of the process.
- A preliminary, free of charge, Business Valuation. We quickly assess a range of value for the business based on its historical and projected financial performance, and comparable recent M&A deals in your industry.
- Assessment of current M&A market conditions in the relevant industry sector. Industry research tells us if there are any strategic problems or opportunities in your industry caused by cyclical or other forces that might affect strategy.
- Transaction timetable: A review of any upcoming business events, cash flow issues or personal goals to establish the best tactical plan from start to targeted completion date
- Exploration of exit strategies based on the client's goals and business position. We review your personal goals, explain possible deal structures, and jointly assess your preferences for timing, risk and deal structure.
- Day 30 - Begin Development of the campaign to market and represent a company to carefully selected potential buyers or investors.
- Days 60 - 180 - Campaign Execution. As each deal matures, we coach, advise and guide you on all aspects of the deal, including structure, tax planning, pricing strategy and negotiation techniques.
- Days 120 - 240 - Deal Comparison & Structuring. It's not unusual to have more than one simultaneous buyer / investor proposing quite different deals, each of which must be assessed on its own merits according to your goals.
- Days 240-360: Closing Stages - Execution of each critical milestone in the closing cycle - including due diligence, legal drafting, financing and closure.
Onyx M&A Planner
- Before starting an assignment, we work together with clients to build a complete set of milestones and target dates associated with the M&A cycle.
- Then, during the M&A sales cycle we hold regular reviews with you to assess how far we're along the plan and how well it's working. In this way you can be sure that Onyx is performing as expected, not placing you on the back burner.
- The net targeted aim is to complete a transaction on-time and on-budget, fulfilling your plans and objectives with no surprises or unnecessary delays.
Effective M&A
An effective M&A service must excel in 4 critical areas:
1. Absorption
- We set out to capture and understand, quickly and accurately, not only a grasp of the client company operations, but also its strengths and weaknesses, market position, competitors and much more. Without this understanding we could not present the most attractive picture to investor/buyer candidates. For example:
- Underexploited business strategies or capital assets that could trigger future growth for a new owner or a better capitalized management team.
- Operational innovations or strategies that differentiate the company from its competitors.
- Market Position relative to competitors, and major trends in the client's market segment.
2. Marketing
- An integral part of nearly every Onyx marketing campaign is a series of documents written and produced by Onyx, with client input. Their purpose is to advertise, summarize and describe the key characteristics of the company, including financial status, operating components and market approach. These critical "selling" pieces are the initial interest-generators to promote the opportunity to the market. Promotion of a client company to assure maximum reach and attractiveness is one of Onyx strengths.
- Note: NONE of this data is shown to 3rd parties without the express approval of the client as to content, accuracy and recipient.
- The marketing documents include:
- An anonymous company Advertisement* - posted by Onyx on one or more M&A websites to which Onyx subscribes and read daily by thousands of investor/buyers. This assures the fast and wide distribution of the availability of a company for sale without revealing who it is.
- A Business Profile* - typically produced to quickly summarize a company's features and attractiveness for prospective investor/buyers. It is deliberately anonymous, and sent by Onyx to targets agreed beforehand by Onyx and the client.
- A full Offering Prospectus* - designed to show the complete Company details to an investor/buyer candidate who has been pre-qualified by Onyx and has signed a Non-Disclosure agreement. This is the primary "selling document", which can be delivered securely over the Internet or sent in paper form. Either way it is a high-quality, full-color rendition of the company's key features.
(* Click on any to obtain sample copies of these documents)
3. Access
- Onyx maintains contact with a large number of investor/buyer individuals and organizations seeking acquisition or investment opportunities. We maintain a database that describes their investment criteria and match these with a client's key selling features and characteristics. We also have access to thousands more such organizations through our Affiliate program. Each time a new client's details are input, an automated email is sent to all the matching Buyers or Investors registered to receive such details.
4. Execution
- No amount of planning or communicating is any good unless the transaction is moved progressively forward, stage by stage. This takes effort and dedication to the end-goal. Since Onyx only accepts clients that we believe have an excellent chance of success, once started we fully commit to move a transaction through the M&A cycle as rapidly and effectively as possible.
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