Thinking of Selling Your Company?
M&A Services
Sale, Merger & Recapitalization
Inxcorp Business Advisors brings an integrated approach to representing the sale, merger or recapitalization of a client’s company. Our firm’s expertise in these disciplines combined with its extensive research and market making provides clients with a broad range of resources.
Company sales, mergers and recapitalizations (a.k.a. business transfer alternatives) are the primary means by which business owners or investors realize the return of vs the return on their business investment. Often this is referred to as a liquidity event. All businesses will one day go through this event whether by choice or by forces outside of ownerships’ control. At Inxcorp we help our clients plan for this event by carefully explaining the business transition alternatives and then thoughtfully selecting the alternative that best accomplishes our client’s business and personal goals.
When the transfer alternative is selected we then design a plan to achieve its results in both monetary and other benefits. Our objective in any sale, merger or recapitalization is to maximize the return and secondary benefits to our clients with the least hassle in the shortest possible time.
Confidential marketing begins when the transfer alternative is selected. We often refer to the marketing phase of a transaction as Matchmaking. After thoroughly analyzing a company’s operations and its owner’s goals for the transfer we then match them against potential suitors. Those suitors are accessed via our extensive databases, internet outreach and other resources that allow us to search for prospects in the company’s region, nationally and globally.
Business Sale Definition:
Transfer of the possession and ownership of a company in its entirety. This is done on a stock or asset basis. If on a stock basis the entire stock of the company is transferred to the purchaser. If it’s asset only certain assets as prescribed may be transferred. The entire goodwill and operations capabilities, however, are customarily transferred in a sale.
Business Merger Definition:
The joining of two firms into one new legal entity. Mergers are effected by exchange of the pre-merger stock (shares) for the stock of the new firm. Owners of each pre-merger firm continue as owners, and the resources of the merging entities are pooled for the benefit of the new entity. If the merged entities were competitors, the merger is called horizontal integration, if they were supplier or customer of one another, it is called vertical integration.
Business Recapitalization Definition:
The partial sale of a company resulting in the payment of a cash lump sum to its stockholders, while the original ownership still retains a minority interest in the business. In addition, the seller will typically be offered performance-related bonuses and stock options. Many business owners choose this option because it removes most of the owner’s financial burden and other risks, eliminating the owners personal guarantees while retaining the benefit of participating in future profits.