Mergers & Acquisitions |Corporate Finance
Private Equity, Corporate, and Family Office Buyer Representation
Providing objective and creative acquisition advice to potential buyers.
Since 2007, TXCCA has concentrated on bringing “proprietary” acquisition opportunities to its private equity, corporate, and family office clients. Proprietary transactions are those in which our clients are one of less than five buyers; often, they are the only buyer, or one of two buyers, negotiating with a willing seller.
This has advantages to both sides as it increases the probability of success for our buyer client and allows them to commit more time and resources on transactions that are of interest and in their “sweet spot." On the other side, it allows the target company/seller to:
- Minimize the disruption to its business caused by a broad auction process;
- Reduce the possibility of confidential information obtained by competitors or buyers that are only “tire-kickers;” and
- Communicate the right message to key employees on a need to know basis.
With a solid understanding of our client’s criteria we:
- Utilize our resources, research, and our referral network to identify companies in which our clients can invest or acquire a controlling interest; and
- Conduct initial due diligence on the target company, ensuring that it is a high level strategic fit so that neither side is misled or wastes time.
When our client and the seller wish to proceed, we will either get deeply involved in the due diligence process or provide advice in the background. In the past, we have:
- Provided valuation services;
- Conducted due diligence on the target company;
- Coordinated due diligence logistics of third party advisers (such as accountants, attorneys, environmental consultants and lenders); and
- Negotiated terms and final documentation on behalf of our clients.
If our private equity client allows co-investment, we are willing to invest a portion of our success fee pari passu with our private equity client’s investment in the target company.
We believe that this demonstrates our desire to achieve the best possible price and terms for our clients, by contributing our capital in the transaction.
Their success is our success.
Corporate Seller Representation
Divestiture of a business or subsidiary.
We work extensively with our corporate clients when they decide to divest a non-core business or sell the entire company. An overview of each stage of the process follows.
Business Valuation &
To start the process TXCCA professionals will:
- Provide a preliminary valuation range;
- Develop an expected timeline for the transaction to help them make a “go/no go” decision based on potential transaction value and timing; and
- Update, if necessary, our valuation for the passage of time or a possible change in circumstances, either positively or negatively, of the company.
Once the decision has been made to proceed, our team will:
- Prepare an information memorandum;
- Compile a preliminary list of potential buyers for our client to review and approve; and
- Contact potential buyers that have been approved by the client pursuant to a confidentiality agreement approved by the client. We may go to a targeted list of potential buyers or a broad universe depending on the business and prospects for the target company, the type of transaction and the client’s desires.
Once initial indications of interest have been received, we will work with management of the client to:
- Select a smaller list of potential buyers to invite to conduct more in-depth due diligence;
- Craft a management presentation to be given to the potential buyers; and
- Coordinate with the company’s accountants, lawyers and other advisors to provide requested information to potential buyers.
Once the final bids that have been received, we will work behind the scenes to:
- Evaluate the offers;
- Pick a final bidder; and
- Negotiate a definitive agreement and other ancillary closing documents.
Fund business growth.
We have raised capital in private and public markets to help consummate an acquisition, fund working capital or to facilitate long-term business expansion and growth. An overview of each stage of the process follows.
Our financing relationships include:
- Traditional lenders such as banks and finance companies
- Business development companies,
- Insurance companies, and
- Non-traditional lenders such as hedge funds and family offices.
Depending on the business, prospects for the target company and our client’s desires, we:
- Develop a small, highly targeted list of potential lenders/investors or compile a broader group for client consideration;
- Prepare an offering memorandum;
- Obtain client approval of a preliminary list of potential lenders/investors; and
- Contact the approved lenders/investors pursuant to an executed confidentiality agreement.
When preliminary term sheets have been received, we will work with management of the client to:
- Compile a smaller list of potential lenders/investors to invite to conduct more in-depth due diligence;
- Create a management presentation to be given to the potential lenders/investors; and
- Coordinate with the company’s other advisors to provide requested information to potential lenders/investors.
Once final term sheets have been received, we will work with management of the client to:
- Select a final lender, investor, or a group of lenders/investors; and
- Negotiate a definitive financing agreement and other ancillary closing documents.