Nations Business Group is not a typical business brokerage or M&A
firm. While we are members of the International Business Brokers Association
(IBBA) and subscribe to their code of ethics, NBG is an acquisition
search specialist.
Acquisition Search Definition:
"When a qualified intermediary utilizes information, resources
and skill to undertake a systematic and persistent search to locate
acquisition candidates exclusively for a named and retained buyer"
Feasibility
Begins by defining your needs, desires and criteria:
- Capabilities
- Geographical desires or restrictions
- Size of Foot Print
- Profitability
- Synergy
- Personnel
- Special requirements by Targeting
Targeting
Begins by pulling together data from various sources:
- NBG database
- Influential contacts
- Government directories and databases
- Trade associations
- D&B
- Commercial business directories
- Perform full area location mapping
Canvassing
and Communication
- Letters drafted utilizing language to impress upon recipient that
our contact isn’t casual
- Letters sent Federal Express or Priority
- Telephone contact with owner within few days of letter
- Continued dialog to convert nominee to prospect
Qualifying
- Pre-qualifying candidates on the phone with specifically developed
interview
- Gathering preliminary financial and operational data
- Perform preliminary pricing range and obtain seller’s general
agreement with pricing and obtain listing
Buyer preliminary presentation
- Submission of gathered information to buyer including maps
- Discussion of data and preliminary interest determination
- Based upon buyers desire issue letter of interest to seller
Pre-due
diligence
- Gather full financial and operational data from prospect
- Work with Buyer and seller on all aspects of transaction
NBG is not a farmer, we are hunters. We do not send letters hoping they
reach someone interested in selling. Persistence produces ever-increasing
results. Concerns about competition, employee reactions and rumors may
keep a would-be seller from taking action unless there is an immediate
need. NBG’s campaign is designed to create the necessary sense of urgency.
The buyer partakes in the activity as soon as exclusivity arrangements
and basic information adequate to begin the level desired. NBG expects
due diligence of past three years, field trips, and discussions necessary
to issue a Letter Of Intent with “outs” and a future purchase
contract to be handled by Buyer. Buyer requests for NBG participation
will be priced based on hard costs and time.
Roll-ups and industry consolidation procedures are a phenomena that
began nationally with all sectors of industry in the 1990’s and
the experience factor determines that 20% or more of un-listed entities
are for sale. NBG utilizes the similar procedures that Wall Street Firms
used but only charges main street prices.
All activity on this endeavor is maintained in a confidential manner
to allow the Buyer / Seller to have a respect of one on one dealing
with little or no interference from third parties. Accounting and Legal
items are best handled by the respective relationships.
Timing for an activity once engaged usually is up to ninety days for
deal flow and decision making on prospects and another up to ninety
days for adequate due diligence and decision for commitments to take
place.
Success fees expected from the Buyer and or Seller or both as previously
agreed are expected to be paid to NBG at closing.
NBG current activity facilitates a streamlined process with trained
staff, professional relationships with many organizations and a host
of associates and Project Directors across North America that allows
NBG to conclude your search for an acquisition successfully.