Mergers and Acquisitions (M&A) Consulting Services

The Auction Process Orchestrated by M&A Consulting Companies

A traditional sell-sid auction process is the primary service that business owners think of when they think of investment banks or m&a consulting firms. As a boutique investment bank, it is a crucial part of our role to understand the intricacies and challenges of acquiring or selling a company and to help guide clients through each step. 

In addition to selling companies through an investment banking style auction process, M&A consulting companies can also offer: debt recapitalizations, growth equity investment, shareholder buyout services, buy-side m&a and corporate development services.

At its core, an M&A auction or sale process that brings together multiple potential buyers in a controlled environment, allowing them to submit bids for the target company. This process ensures that the seller receives the best possible selling price while providing interested buyers an equal opportunity to present their offers. The M&A auction process typically involves the following key stages:

The Raincatcher M&A Process

Our Specially Designed M&A Process to Maximize Value for our Sell-side Clients

Sell-side due diligence

Due diligence is traditionally done by business buyers and not business brokers. However, our comprehensive sell-side process includes a diligence process before we bring a business to market. 

Our comprehensive diligence process is designed to drive the highest value for the business owner as buyers know that there won’t be any skeletons in the closet once they submit an offer and start spending money on legal and financial diligence.

Specially designed brokerage or M&A auction process

Depending on the size of your business and industry your company operates in, we may recommend a traditional brokerage process with a listing price. Or, a competitive auction process with buyers submitting the price and terms for negotiation. 

Our buyer list is comprehensive and will be tailored to include (or exclude) and participants in your industry who may make great strategic buyers or who you want to avoid knowing the business is on the market.

Short-listing finalists

It isn’t uncommon for strong, sizable companies to get 5+ indications of interest (soft offers). We’ll then validate those buyer groups, attend dinners where they meet out clients, prepare further data on the business and negotiate the deal terms that buyers will propose in their final offer.

Negotiate LOI terms and facilitate diligence

Once LOI’s have been received from potential buyers we work with our clients to select the most attractive offer before executing the exclusive LOI.

It’s common for diligence to take 60-90 days before closing. This requires a significant time commitment from all parties. Additionally, final deal points are negotiated and contested during this period.

Talk to the experts

Care to learn more about Raincatcher’s consulting, brokerage and M&A processes and what we can do for your business? Get in touch with us for a complimentary consultation.

Request a consultation with an M&A Consultant

If you are doing $5m+ in annual revenue, feel free to request a meeting with one of our M&A advisors. We have licensed advisors located across the country and expertise in a number of different industries.

Buy-side M&A Consulting Process

The buy-side M&A consulting process involves providing guidance and support to clients looking to acquire businesses or assets. As an M&A advisor specializing in buy-side consulting, the following steps are typically involved in the process:

  1. Strategy Development: The consultant works closely with the client to understand their strategic objectives, growth plans, and acquisition criteria. This includes identifying target industries, geographies, company sizes, and specific characteristics that align with the client’s goals.

  2. Target Identification and Screening: The consultant conducts extensive research and analysis to identify potential acquisition targets that fit the client’s criteria. This involves evaluating industry trends, market dynamics, financial performance, and competitive landscape. The consultant screens and shortlists potential targets for further evaluation.

  3. Due Diligence: Once potential targets have been identified, the consultant assists the client in conducting due diligence on these targets. This includes analyzing financial statements, assessing operational capabilities, evaluating legal and regulatory compliance, and identifying potential risks and synergies. The consultant plays a crucial role in coordinating and managing the due diligence process, working with legal, financial, and technical experts as needed.

  4. Valuation and Financial Analysis: Based on the findings of due diligence, the consultant helps the client assess the valuation of the target companies. This involves conducting financial analysis, including forecasting future performance, determining appropriate valuation metrics, and comparing comparable transactions. The consultant provides guidance on fair value, negotiation strategies, and potential deal structures.

  5. Negotiation and Deal Structuring: The consultant assists the client in structuring the deal and negotiating the terms with the target company’s owners or representatives. This includes determining the purchase price, payment terms, earn-out provisions, and any other contractual arrangements. The consultant aims to achieve the best possible terms and ensure alignment with the client’s strategic objectives.

  6. Financing and Transaction Execution: If necessary, the consultant helps the client explore financing options to fund the acquisition. This may involve connecting the client with potential lenders or investors and assisting in the negotiation of financing terms. Once financing is secured, the consultant supports the client in executing the transaction, coordinating legal and regulatory requirements, and managing the closing process.

  7. Post-Acquisition Integration: Following the completion of the acquisition, the consultant may provide guidance on post-acquisition integration strategies. This involves developing a detailed integration plan, identifying synergies, managing cultural integration, and ensuring a smooth transition for all stakeholders.

Throughout the buy-side M&A consulting process, the consultant serves as a trusted advisor, leveraging their expertise in M&A transactions, industry knowledge, and network to guide the client through each stage. The consultant’s objective is to maximize value, mitigate risks, and ensure a successful acquisition that aligns with the client’s strategic goals.

Other M&A Services Offered in the Middle Market

Lower middle-market investment banks like Raincatcher offer a range of consulting services beyond M&A brokerage and taking companies public. These services cater to the unique needs and challenges of middle-market companies. Here are some key services provided by middle-market investment banks:

  1. Capital Raising: Middle-market investment banks assist companies in raising capital to support their growth and expansion plans. This may include debt financing, equity financing, mezzanine financing, or structured finance solutions. 

  2. Debt Restructuring and Refinancing: When companies face financial distress or seek to optimize their capital structure, middle-market investment banks can provide debt restructuring and refinancing services. 

  3. Growth Equity and Mezzanine Financing: For companies seeking growth capital without diluting control, middle-market investment banks may offer growth equity or mezzanine financing solutions. 

  4. Recapitalization and Exit Planning: Investment banks assist business owners in planning their exit strategies and optimizing their capital through recapitalization.

  5. Fairness Opinions: Investment banks can provide fairness opinions, which are independent assessments of the fairness of a proposed transaction from a financial point of view. 

  6. Exit Preparation: A qualified M&A Consultant will be able to guide clients not just through the sell-side process, but will be able to work with them to prepare the companies financials, operations and organization for exit long before they receive indications of interest from prospective buyers or investors.