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The first question which comes
to mind for many people is "what distinguishes
a Mergers and Acquisitions (M&A) practitioner
from a general business broker? The answer, for
the most part, may be attributed to the accumulation
level of education, training and experience of
the individual. |
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speaking, when one speaks in terms of engaging an
M&A specialist, one often is considering the
acquisition or sale of a company possessing at least
some of the following characteristics: |
- Gross revenue.
- Earnings before interest
& taxes (EBIT) in excess of $300,000
- Historical track-record
of significant revenues and earnings which can
stand-up to the rigors of financial "due
diligence."
- An M&A specialist
is trained to understand the more complex issues
of deal making, including:
- The application of appropriate
capitalization rates (multiples of earnings)
to determine Fair Market Value of an ongoing
business.
- The benefit/harm of
the "allocation" of the purchase Price
between the various assets of the business.
- The risk/benefits of
"asset" structured sales as opposed
to stock sales.
- The consequences
of the representations and warranties made by
the parties which survive the transaction.
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Additionally,
an M&A specialist understands the "ebb and flow"
of the deal. He or she can guide a buyer or seller through
the tangle of documentation, due diligence and negotiations
which usually accompany the sale or acquisition of a substantial
business.
Every EMPIRE Business Broker Office has brokers
who possess the necessary criteria mentioned above to
skillfully handle a much larger or more complex transaction.
At EMPIRE Business Brokers, M&A training is
an ongoing process. We have developed an enhanced training
program for the Empire brokers. We provide them the critical
knowledge and skills necessary for representing their
clients to the highest level of industry standards. Our
goal at Empire is to continually refine and add to the
skill set of our business brokers to ensure that they
best represent their clients, regardless of the size of
the transaction. |
If you have the need for professional M&A assistance,
don't
hesitate to contact us:
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