MERGERS & 

ACQUISITIONS 

Sales and Purchases of Companies

The term mergers & acquisitions ("M&A") is often used to refer to the sale or purchase of a company. While this may accurately describe a large number of deals, many others involve the divestiture of a single division, or the sale of intangible assets. No matter the size of the deal, two fundamental issues must always be addressed - Valuation (what is the investment worth), and Financing (how will it be funded - cash, seller financing, stock, earn outs, etc.).

Valuation is highly subjective and can lead to very different assessments by the buyer and seller. Equally, the structure of financing is limited only by the creativity of the parties involved. As a result, neither valuation nor financing can be approached casually. Each requires a specific set of skill sets that become polished only through experience and industry know-how.

Our partners have helped clients with over 50 successful M&A transactions in the industry. Our experience will help you to negotiate a favorable valuation, and develop a financing package to close the deal.

Partial Sales and Other Early Departures

At some point in the life of a private company, one or more shareholders will seek liquidity. The resulting divergence in objectives can create unrest that in some cases may impact corporate performance. A simple solution would be a buyout of the divesting owner, however most companies lack sufficient cash flow to finance it. Complicating matters further, raising external capital can be both time consuming and challenging.The challenges that face shareholders warrant retaining a professional advisory firm skilled in valuations and negotiations. The partners at Conexus Capital Advisors have substantial experience working with shareholder groups to develop succession plans and formulate liquidity options. We can help buyers and sellers to overcome many of the pitfalls, help to establish realistic expectations, and find a middle ground acceptable to all parties involved.

 

Conexus was instrumental in helping us divest our Brazilian subsidiary in a quickly executed, highly successful transaction. We were impressed by Conexus' professional execution, knowledge and depth of relationships in the F&F industry.

Former CEO & Owner of Belmay, Inc.

TED KESTEN

STRATEGIC & FINANCIAL ADVISORY

Successful business owners focus their efforts on what they do best and outsource tasks that require unique skills. Doing so not only allows efficient staffing, but guarantees these tasks will be handled professionally, and in a timely, cost effective manner.

At Conexus, our partners feel the same way about strategic and financial matters. The decision to enter into a joint venture, buy a competitor, or divest a division is a major event, and companies' should retain a trusted advisory firm for this special task who will work to protect their interests in a deal. If you are considering an acquisition, divestiture, private stock sale, or joint venture we ask that you consider three important questions:

  • Are you familiar with the process of selling or buying a company or entering a joint venture?

  • Would you feel comfortable assigning a specific value to a deal and negotiating a transaction?

  • Do you have the resources, experience, and bandwidth to properly evaluate, negotiate, and execute the deal?

If you are unsure of the answer to any of these questions, we would strongly recommend you retain an advisory firm capable of representing your interests.

If you are interested in setting up a consultation, our partners would be happy to speak with you to develop a plan of action that will maximize your firm's value.


 

LICENSING, SALE OF INTANGIBLE ASSETS & JOINT VENTURES

Unlocking the hidden value of your technology.
Whether you are an emerging company with a new product, or a seasoned player looking to capitalize on an existing technology, licensing or selling intangible assets/technologies can provide an important source of cash flow. Like many other deals, the value of a licensing agreement or intangible asset is abstract and requires well planned negotiations and strategy to guarantee that businesses receive their due reward.

The partners at Conexus Capital Advisors have negotiated numerous licensing agreements across a broad range of situations, and can help to maximize your product's value while at the same time, minimize the rights you relinquish.


Buy, Without Buying...
Joint ventures provide an excellent alternative to an acquisition when assets or technologies are not tangible - e.g. critical personnel who can leave following an acquisition. JV's, when skillfully negotiated, provide protection against this risk, and serve to align both the short and long term expectations of all parties involved. It has been our experience that the best JV's are often the simplest, with established incentives and measurable milestones. The partners at Conexus have negotiated and structured numerous joint venture agreements many of which remain active today.

Please contact Joska M. Matejec if you are interested in speaking with us.

© 2019 Conexus Capital Advisors, Inc. 

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