The most reliable measures of value are recent market comparables and capitalized income. Other methods such as discounted cash flows, excess earnings, weighted factors or separate asset models can also be useful depending on the firm and the circumstances. STONEGATE can provide value OPINIONS utilizing two or more of the above, or will arrange for a third party independent APPRAISAL. STONEGATE does not charge for a “Rapid Range” value benchmark which is helpful in making the decision on sale timing. Fees for formal Value Opinions are credited back to the Seller when an enterprise is sold.
Can the Pre-Transfer Process Be Kept Confidential?
Customers, employees, vendors, lessors, lenders, regulators and competitors are all interested parties whose knowledge of a pending transaction must be carefully managed. The use of an intermediary such as STONEGATE can be an invaluable source for off-site meetings, pre-qualifications, execution of non-disclosures, restricting site to site communications and other containment tools for controlling the release of information about a pending business transfer. An intermediary can assure that only qualified, informed and truly interested parties are in attendance at the first confidential face to face …minimizing wasted time.
When and Why Do I Need an M&A Firm Such as STONEGATE?
Not all business transfers require an intermediary. Business transfers exhibiting most or some of the following … financing not in place, no identified ready, willing and able buyers/sellers, a need for confidentiality, uncertain value, buyer/seller resources unavailable for ‘offer to close’ process and due-diligence coordination, a need for referrals of CPA’s and attorneys with business transfer experience, and/or a desire for structuring or negotiating assistance ….. will benefit from intermediary involvement.
Who Pays the M&A Fees?
STONEGATE typically functions as a ‘Transaction’ Broker / Intermediary in which the fees are weighted toward the Seller(s) on an accomplishment basis. In cases where private equity or larger strategic acquirers have engaged STONEGATE to actively seek out candidates, the acquirer(s) normally pay the fees. Multiple alternatives are available however, and STONEGATE always submits a written fee proposal to the inquiring party after evaluating the nature and complexity of each project.
How Are the Acquirers or Sellers Found?
Acquirers normally fall into two categories… financial and strategic. STONEGATE is continuously approached by middle market firms or partnerships, private equity groups, public corporations and high net worth individuals seeking quality business opportunities. In addition, STONEGATE actively packages and markets client firms using carefully controlled direct contact techniques and professionally prepared marketing materials. Prospective selling firms either approach STONEGATE because of its reputation, strong presence and referral base; or are found through a directed search initiated by STONEGATE at the request of an acquirer. Acquirers can be local, national and international in demographic profile and STONEGATE employs extensive data base resources for screening candidates.
What Qualifications Does STONEGATE Have?
STONEGATE has handled projects ranging from $100k to $10MM (middle market), has been in business in the SE US for over 20 years, has a broad range of experience and expertise, and is affiliated with the most productive associations and successful M&A firms throughout the US. A specific list of references is available on request. STONEGATE also maintains relationships with CPA’s, attorneys, lenders, tax advisors, financial planners and other professionals specializing in business transfer support, who have shown themselves to be exceptional in their knowledge, ethics and approach during previous STONEGATE transactions.
Scott W. Vierima – SCG’s Managing Member has over 20 years experience in enterprise acquisitions and sales, specializing in distribution, manufacturing, B to B, technology and medical SIC’s. He has served as financial VP and as Board member for multiple corporations, and has acted as intermediary for numerous ownership transfers and funding initiatives, both public and private. Mr. Vierima holds an MBA, a BSEE and CBI, SBA, and MEA certifications. He is licensed by the State of Florida.
Should I Work With Multiple M&A Firms When Seeking Acquisitions?
Working with multiple intermediaries has the advantage of being in direct contact with the M&A firm representing the selling client. However; in many circumstances intermediaries ‘cooperate’ on their offerings and all have access to the most actively used data bases. Working through a single intermediary that you have pre-screened and found to be competent and aggressive, will normally net faster and more satisfactory results since that firm quickly develops a profile of your preferences and contact history.
What is a “Middle Market” Company and Do You Serve Small (Mainstreet) Companies?
'Middle market' has historically indicated a company with revenues in excess of $1MM and under $50MM. The broker / intermediary world is divided into segments with investment banks servicing the needs of companies with revenues in excess of $250MM, regional ‘capital markets groups’ servicing those in the $50MM to $250MM range, middle market M&A firms (such as STONEGATE) serving clients with revenues from $1MM to $50MM, and ‘mainstreet’ business brokers handling small business needs. The skills and resource requirements at each layer are different, as are the fee structures. STONEGATE is associated with numerous mainstreet focused firms through the IBBA. IBBA business brokers are experienced and qualified in most types of small business transactions and they can accomodate small business owners needs while STONEGATE personnel monitor and support each mainstreet project.
Is STONEGATE a Securities Dealer or Stock Broker?
No, STONEGATE does not deal in or broker securities of any kind. STONEGATE is a boutique mergers and acquisitions firm that intermediates middle market asset and enterprise purchases and sales.