I am not a banker, but I have experience working alongside M&A bankers such as Mooreland Partners. In 2014, I helped successfully sell Shenick Network Systems for $28.5 million: 3x times trailing revenue. See the announcement here: Shenick Acquisition
Raise Equity Capital
In limited situations, I will help a client raise equity capital. I only do this for established clients with whom I already have a strong working relationship. Here is an Investment Brief I put together and used during the search for a suitable equity investor for this client.
Mergers and Acquisitions (M&A)
I maintain relationships with a large number of M&A professionals in Silicon Valley and beyond. I can help identify an appropriate banker or individual for my client, based upon their specific circumstances—all bankers are not alike and each has a certain expertise. I can then help throughout the entire M&A process—sometimes acting as my client’s main representative. Some of the functions and activities that I can perform on behalf of my client are as follows:
- Lead an internal acquisition strategy session. Many of my clients have no prior M&A experience. Part of this session is devoted to creating a “target acquirer” list. This helps speed the process along and is helpful to have when interviewing M&A professionals. If at all possible, it is best to engage with an M&A professional that already has relationships with some number of the target acquirers.
- Write an executive summary outlining the opportunity
- Produce high-level pitch deck. Typically 15 – 20 PowerPoint slides that describe the company. It is provided to potential buyers in stage 1 to identify initial interest and suitability
- Help prepare the client for future due diligence by the acquirer. Assemble necessary financial data, identify key employees etc.
- Create a Confidential Information Memorandum (CIM). This is a detailed document which provides an in-depth view of the company. It typically contains highly confidential data (e.g. audited balance sheet and income statement) and is ONLY disclosed to serious buyers in stage 2 with an NDA in place
- Present to potential acquirers
- Help negotiate terms of acquisition