There are several seasons during
the calendar year that have historically
shown a decrease in buyer response to
new opportunities launched to market.
These seasons typically are focused
around holiday seasons and the vacation
season. Very simply, interest in
starting the acquisition process for a
privately-held company declines sig-
M&A Market Seasonality
The Credit Crunch, continued
an option — unless the buyout
firms start giving back their commitments,
which is highly unlikely,
especially if prices start to fall and
companies potentially become better
bargains. Buyout funds raise
money so they can buy companies.
Period.
When business owners feel the need to
reduce their risk of having so much of
their personal wealth tied up in a privately-
held company, but are reluctant
to sell the entire company, a recap might
be the solution. In simple terms, a
recapitalization is a transaction that
allows business owners to sell a portion
of their company to a private equity
group.
The Transition Companies Info : VTI Inc. (“the company” or “VTI”) was a $17 million manufacturer of PC’s located in New Jersey. The company brand labeled the PC’s they manufactured and sold them under the VTI brand name. The PC’s were manufactured and technical support was provided from a 10,000 square foot facility in central New Jersey.
VTI was a plaintiff in a law suit with a former shareholder/partner and was also a defendant in a cross claim from that former shareholder. This litigation was still in process when The Transition Companies was retained and commenced The Transition Companies M&A Process. Questions
Each issue of our newsletter will present one
of several Frequently Asked Questions. The
entire list may be viewed on our website at
www.intercap.us.
What is the first step we need to
take to move forward?
Consult with an InterCap M&A professional.
Is the timing right from a
personal, business sector, industry,
company performance, and overall
economy perspective?
Initially, InterCap will analyze all
aspects of your company to develop a
professional offering memorandum
known as a Confidential Business
Review (CBR). The CBR will incorporate
the tangible and intangible
aspects of the business and capture its
upside potential.
When business owners feel the need to
reduce their risk of having so much of
their personal wealth tied up in a privately-
held company, but are reluctant
to sell the entire company, a recap might
be the solution. In simple terms, a
recapitalization is a transaction that
allows business owners to sell a portion
of their company to a private equity
group.
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