Why should I hire a Financial Advisor?
The buyout or sale of a company is a complex process that requires the completion of tasks on different fronts while identifying and attending to several interested parties. Having a specialized team who is responsible for the entire process allows the client to optimize conditions more efficiently without having to devote owner or management time and attention in order to handle exceptional situations. The owners and managers of countless companies have found that hiring an experienced financial advisor in these processes brings important benefits:
Confidentiality. The advisor can safeguard the buying of selling company’s confidentiality during the initial contacts with potential buyers or sellers by not divulging its identity. The advisor filters and disqualifies buyers or sellers who do not fit the desired profile.
Handling of the Process. A specialist focuses on identifying the main characteristics of the company to be bought or sold. Special care is taken to ensure that these align with the promotion or search of target companies. In a sale these are reflected in the documents prepared by the advisor to promote the company to those interested, which are prepared so as to present a complete image of all the characteristics that make such a company desirable.
In the case of a buyout the focus is on the acquisition criteria that will be used to evaluate target companies. In both cases a specialist should be able to develop a valuation of a company based on industry-recognized methodologies and design the most convenient structure for the transaction.
Facilitating role. Maintaining the dynamic between buyers and sellers in merger and acquisition processes is essential to achieve satisfactory results. The financial advisor organizes a work schedule that keeps all parties actively involved in the process, thus guaranteeing its development. It is also essential to monitor legal, financial and operational information requests and reply, and ensure their relevance and usefulness. The financial advisor is positioned to perform this demanding work and maintains the rhythm of the entire process. By contrast a business owner could only afford to devote time sporadically an individually to this process, which would mean a loss of control and a weakened negotiation position. The financial advisor saves valuable time for the owner of a company by taking charge of all tasks pertaining to the process.
Negotiation Assistance. The financial advisor can establish a better negotiating position and avoid the client’s exposure to the stresses of the process. The sale of a company is a complex task. If the owner of a company has never had this experience before, this can result in a disadvantageous position because in all likelihood the majority of buyers have completed many transactions in the past. Those sellers who are not properly prepared and advised can risk making unnecessary concessions. Many company owners work their whole lives creating value for their business but they can spend the final months destroying it because expensive mistakes are often made during the sale and negotiation process.
Hiring an experienced financial advisor such as SFA Consultores helps the seller get the best offer for the business. Similarly, it helps the buyer not pay too much during an acquisition. The financial advisor’s main occupation is buying and selling companies, while company owners only do that once in their lifetime.
Management Buyouts
Sometimes the most qualified buyer is the current management. SFA Consultores provides advice to conduct a buyout by assisting in the valuation, structuring, negotiation and financing for the transaction. This often applies particularly to family firms where the founding partner is unable to find a relative interested in continuing the business. The peculiar nature of this transaction is defined by the management’s role as a buyer and the consequences derived from this. Typically the management does not have the necessary funds to buy...
Leer másCorporate Successions
Periods of stock and management succession are crucial in the lives of family firms. Over the past 15 years the partners at SFA have developed useful experience on this type of transitions. SFA can advise all parties on the renge of options available to them. These may include hiring staff outside the family, establishing controlled trusts, partial sales and restructuring of family assets. Our advice has allowed many such firms to maintain family harmony and preserve their legacy for future generations. The value generated by the company over...
Leer másBusiness Unit Divestment
Successful companies do not only invest, but also know when to divest assets that are no longer strategic. When evaluating the best way to manage their operations, they simultaneously consider the areas where they want to grow and those that are no longer part of their business. Letting go of non-strategic assets can allow the management to concentrate on their central business. That way they can transfer operations that are not their main focus to new owners where these can be developed more productively. The experience of SFA in...
Leer másDebt Restructuring
The partners at SFA Consultores have ample experience in the processes of financial restructuring. They have worked with such diverse sectors as airlines, construction, transportation and real estate. Their experience has allowed them to assist the companies and their creditors, reaching settlements both in courts and outside them. We have assisted our clients in successfully navigating the troubled financial areas of trading contests in Mexico and those of “Chapter 11” in the United States as well as the liquidation and/or sale of important...
Leer másOpinions of Value
An opinion of value is an independent statement made by a financial expert about the fairness of the terms in a specific financial transaction. Opinions of value are used in corporate transactions, where there is a close relationship between the parties, and also between unknown parties. For example, if a publicly traded company makes a public buyout offer, the opinion of value is necessary to ensure that the financial terms and conditions are fair for the investing public. An independent financial advisor is indispensible to issue an...
Leer másValeant Pharmaceuticals
Canadian multinational company. Develops, manufactures and distributes a wide range of pharmaceutical products. Identified and fully conducted the buyout of Atlantis-PHARMA. Amount of the transaction: $70.9 million....
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Mexican company focused on electric installation for construction. Financial valuation and advice for its sale.
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Leader in electronic payment systems technology. Business plan creation and financing
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