Mergers & Acquisitions
Tulsa and Oklahoma City - 30 year M&A Advisors
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Tulsa and Oklahoma City Mergers & Acquisitions Experts
Businesses are complex and can be difficult to sell for a great price, particularly if you want to keep it confidential, command a high price and get the deal done in good time. Too many business owners learn the pitfalls the hard way and waste a lot of time and money in the process.
ClearRidge Capital and its Directors have helped hundreds of business owners sell their company. We plan for the sale, prepare the business, create offering documents, conduct a financial review and appraisal, resolve any problems and market the company to a broad range of buyer types. It sounds like a simple process, but every step needs to be considered carefully, executed professionally and completed efficiently. This is what ClearRidge gets done.
It will cost you a few percent of the sale price to hire ClearRidge to help you, but you only have to pay us if we get the job done and in most cases we deliver more than twenty percent to the final sale price.
ClearRidge has represented companies with annual sales between $10 million and $450 million.
We start with an extensive list of buyer prospects, then cut out all those you don’t want us to talk to. We then find out which buyers are most willing and able to pay the highest price today for a company of your size and type.
After getting a signed confidentiality agreement from all our buyer prospects, we market your company to them and narrow down a shortlist of our best buyer candidates.
Our goal is to then create a controlled and confidential auction to deliver a range of competitive bids and deal structures for you to choose from. Once you have had time to consider which deal is best for you, we complete the deal for you with your preferred buyer.
Why would someone contemplate an Acquisition?
The key principle behind buying a company is to create value for shareholders or owners over and above that of the sum of the two companies. The larger the company, the higher multiple a buyer will pay, so the more the business is worth relative to its size. In theory, two companies together are more valuable than the same two companies apart.
Strong companies will plan to buy other companies to create a more competitive, cost-efficient business. The companies will come together hoping to gain a greater market share, to expand vertically along the supply chain, to expand product or service lines horizontally, or maybe expand geographically to new clients beyond their reach. In addition, the hope is that combined companies will allow cost savings and economies-of-scale.
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Contact a Mergers & Acquisitions Professional
Sell your Oklahoma Company with Tulsa and Oklahoma City Mergers & Acquisitions Experts with over 30 years experience. Expert Representation for Midsize Businesses with $10 million to $500 million in Annual Revenues.
Need help to sell your business? Need help to maximize your sale price? Need help to keep it confidential? Need to talk to strategic buyers? Need to talk to financial buyers? Sell Your Business and Maximize your Sale price.
m&a, mergers and acquisitions, mergers & acquisitions, sell company, sell business, business valuations, valuation services, business worth, enterprise value, business value, business broker
Visit us in Tulsa or Oklahoma City today.
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Difference between a Merger and an Acquisition
These two terms are often used together, but they represent quite different transactions.
Acquisition
When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. Both entities may still exist after an acquisition, but the acquiring company will own a controlling interest in the acquired company.
Merger
A merger happens when two firms agree to go forward as a single company rather than remain separately owned and operated. This action is referred to as a "merger of equals.”
In real life, a merger of equals does not happen very often. Usually, one company will buy another and, as part of the terms of the deal, will allow the acquired firm to announce that the action is a merger.
By merging two or more companies, the hope is to benefit from:
• Economies of scale - Whether it's purchasing raw materials, negotiating better rates on contracts, or implementing new IT systems, you have more leverage with suppliers when the numbers are higher.
• Acquiring new technology - To stay competitive, companies need to stay on top of technological developments and their business applications. By buying a smaller company with unique technologies, a large company can maintain or develop a competitive edge.
• Improved Productivity – If you think of many manufacturing plants, much of the equipment is required, but operated well below capacity. Increase the capacity, share equipment and processes and the unit costs go down.
• Improved market reach and industry visibility - Companies buy companies to reach new markets and grow revenues and earnings. A merger may expand two companies' marketing and distribution, giving them new sales opportunities. A merger can also improve a company's standing in the investment community: bigger firms often have an easier time raising capital than smaller ones.
• Staff reductions – The typical misconception is that mergers inevitably lead to job losses as the combined companies try to reduce unnecessary duplicated costs. On the other hand, people represent a critical asset to most businesses and in some cases a merger can lead to new hiring and improved job opportunities.
Unfortunately, a merger is rarely as easy as it looks on paper. Few mergers are as successful as either side hopes. You are taking two very different entities with different operational, financial and strategic structures, with different employee networks, different management styles and different business principles. Great attention should be paid in advance to the critical success factors of a merger and much time taken after the merger to ensure a successful transition.
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Contact a Mergers & Acquisitions Professional
Sell your Oklahoma Company with Tulsa and Oklahoma City Mergers & Acquisitions Experts with over 30 years experience. Expert Representation for Midsize Businesses with $10 million to $500 million in Annual Revenues.
Need help to sell your business? Need help to maximize your sale price? Need help to keep it confidential? Need to talk to strategic buyers? Need to talk to financial buyers? Sell Your Business and Maximize your Sale price.
m&a, mergers and acquisitions, mergers & acquisitions, sell company, sell business, business valuations, valuation services, business worth, enterprise value, business value, business broker
Visit us in Tulsa or Oklahoma City today.
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Types of Mergers and Acquisitions
There are a range of different types of mergers and acquisitions, but most fall under one of the following two categories:
Horizontal - Two companies in the same industry that provide a similar product or service in the same stage of production. e.g. two valve manufacturers merge to form a larger company and increase market share.
Vertical – Downstream = acquiring a company that you sell to or distribute your products or services through. Upstream = acquiring a supplier. e.g. A steel fabricator acquires a steel supplier.
Unlike mergers, acquisitions involve one or more firms purchasing another – acquisitions of privately-held companies tend to be friendly as the shareholders have the freedom to accept or reject any offers. Even if the company is in a troubled situation, the owners still have to accept the terms of the acquisition.
The exception occurs in bankruptcy, where the creditors may determine a sale to be the best option to recover money.
With publicly-held companies, you can see hostile acquisitions succeed which do not have approval of management, but are accepted by the shareholders who see the hostile acquisition as more beneficial to them. An acquisition approach becomes hostile if the board rejects an acquisition offer, but the bidder continues to pursue, or if the bidder makes an offer to the shareholders without informing the board beforehand.
A hostile acquisition carries a higher degree of risk, as the bidder is only relying on publicly available information to make their decisions, whereas a friendly approach would involve extensive due diligence by the bidder.
A Reverse takeover/ reverse merger is typically where a private company acquires a public shell company in order to gain a public listing and gives the company access to raising capital versus an Initial Public Offering.
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Contact a Mergers & Acquisitions Professional
Sell your Oklahoma Company with Tulsa and Oklahoma City Mergers & Acquisitions Experts with over 30 years experience. Expert Representation for Midsize Businesses with $10 million to $500 million in Annual Revenues.
Need help to sell your business? Need help to maximize your sale price? Need help to keep it confidential? Need to talk to strategic buyers? Need to talk to financial buyers? Sell Your Business and Maximize your Sale price.
m&a, mergers and acquisitions, mergers & acquisitions, sell company, sell business, business valuations, valuation services, business worth, enterprise value, business value, business broker
Visit us in Tulsa or Oklahoma City today.
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