2019 Baker Group MAC

Our

Process

Business Owners Trust Baker Group M&A Consultants

 

When business owners make the decision to entrust in Baker Group M&A Consultants, Inc.’s services they have the freedom to continue to concentrate on what they do best...operating their business.

 

Baker Group M&A Consultants,Inc. is proud to accomplish all of the important steps involved in bringing an interested acquirer to the table. Bringing about a successful transaction involves timing, talent, experience, and practice, among many other attributes.

Below is a general outline of the step-by-step process that Baker Group M&A Consultants, Inc. undergoes in reaching successful transactions. The process has been broken down into four critical stages.

 

Preparing the Company for Acquirer(s) Review

 

At no cost to our Client, BGMAC compiles business and financial information that our Client has provided to us in consultations and then we prepare a detailed Company Summary and Information Booklet:

 

  • BGMAC prepares a brief profile about the Client Company to provide to potential acquirer(s). An interested Acquirer(s) will execute a non-disclosure agreement (NDA) to protect the Client Company's confidential information. A copy of the NDA will be provided to the Client for his/her records.

  • Included in the Information Booklet are financial statements, employee data, product/services information, referral information, company history, owner’s industry experience/background, company’s growth history, pictures, industry literature, company advertisements and any other pertinent business information.

  • Additionally, BGMAC will have an extensive consultation with Client or Client’s accountant to thoroughly review the financial statements whereby BGMAC will extract from the statements and Recastable expense items in order to improve the Client’s bottom line.

  • Once all of the information has been gathered, BGMAC will prepare a Client Information Booklet in electronic format to be provided to potential Acquirer(s) who have executed an NDA on behalf of the Client Company.

BGMAC provides this Information Booklet to the interested Acquirer(s) for their review.

Discussion takes place between Acquirer(s) regarding the Information Booklet, questions are answered and items are clarified.

Discussion with Client regarding Acquirer(s) interest in moving forward toward a potential acquisition or recapitalization.

Additional information may be requested either verbally or in report format. This step may occur several times as negotiations proceed and further information is requested by Acquirer(s).

 

Meetings – Offers & Terms of Purchase

 

If all preliminary questions and expectations are met to Acquirer and Client’s satisfaction, a face-to-face meeting may be arranged between Acquirer(s) and Client

 

Acquirer and Client generally meet at Client’s business. Acquirers prefer to meet at Client’s place of business; however, under certain circumstances an “off site” meeting may be arranged. The purpose of this meeting is to establish a relationship between the Acquirer and the Client as well as view the operations site during its active operational hours.

 

Baker Group has the ability to bring the buyers directly to you!  With access to Jerry Baker's planes it gives our team the luxury of being able to work closely with our clients. ​​​​

 

After the meeting, BGMAC will have discussions separately with both Acquirer and Client to discuss overall impressions. Further questions or requests for information may result. The decision to move forward with relationship is also discussed with both parties.

Terms of Letter of Intent Discussed

 

Negotiations with Acquirer and BGMAC begin regarding purchase price and terms of a Letter of Intent (LOI) on behalf of Client’s business. Sometimes an Indication of Interest (IOI) is prepared in writing by the Acquirer to use as a discussion tool with the Client.

Negotiations proceed to a written Letter of Intent (LOI) for presentation to the Client

Written Letter of Intent is presented to Client and discussed in great detail in consultation between BGMAC and Client. This step may require additional consultation with Acquirer until acceptable terms are agreed upon.

Client signs Letter of Intent agreeing to move forward with due diligence phase.

 

Due diligence process begins with Acquirer

Documents and additional information is requested in detail by the Acquirer

 

On site audit review (more than one may occur) is conducted by the Acquirer

If any errors or substantial discrepancies from previously presented information are found during the audit review corrections/explanations may be required before Acquirer will proceed or the Acquirer may decide not to continue with the transaction.

 

Due diligence process completed.

Purchase Agreement, along with other ancillary documents, are prepared by Acquirer’s legal department and presented through BGMAC, who in turn will forward to Client/Client’s attorney for review and comments as necessary

Terms of Purchase Agreement are agreed upon and Client and Acquirer execute the documents.

 

Closing the transaction

 

Closing the transaction may be done either face to face or via facsimile. Client may receive cash, stock or combination of both from transaction, as detailed in the Purchase Agreement. At the time of closing, BGMAC will receive their full consulting fee by wire transfer equal to the amount agreed upon.

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