Sell-Side Advisory
Synxronos works with private companies, whose owners/operators are seeking to divest their business in order to monetize their most important asset - their business.
Oftentimes, owner/operators of businesses are approached by strategic or financial buyers with unsolicited offers. In these situations, the owner/operator is best to consult with a mergers & acquisitions advisor to assess the true value of the business as unsolicited offers typically do not represent the full value of the business.
Synxronos' approach, which typically lasts 6-7 months to divestiture, includes:
- Understand the client's business, the industry it competes in and its financial outlook
- Develop financial models to determine a realistic valuation for the business
- Develop a list of prospective buyers, including competitors, complementary businesses and other potential strategic & financial buyers
- Prepare an offering memorandum on the business, focused on the strategic and tactical benefits the business would have with the likely acquirers
- Contact prospective buyers, sign non-disclosure agreements, send prospective buyers offering memorandum, solicit indications of interest for the business
- Select the tops offers and manage these companies through a more thorough review of the business, including a formal management presentation, facilities tour and financial review
- Select the final offer and negotiate and close the transaction
Buy-Side Advisory
Synxronos works with strategic buyers who are seeking to fulfill a strategic objective through a single or series of acquisitions.
When a client is able to identify and acquire a company that was not actively being marketed for sale, the client is usually able to acquire the company at a discount. In addition, any proprietary and confidential information about the candidate is not widely available to competitors.
Synxronos' approach to acquisitions includes:
- Assess the client's strategy to ensure that it is consistent with its goals and market realities
- Compile a list of acquisition candidates based on industry contacts, industry knowledge and primary and secondary market research
- Screen and prioritize the candidates based on the client's strategic, financial and management requirements
- Contact the preferred candidates to better understand their business with respect to their customers, markets, technologies, operations and financials
- Prepare financial models and develop a valuation on the candidates
- Develop proposed transaction structure (e.g. purchase price, earn-out mechanisms) and draft a Letter of Intent
- Work closely with the client through the due diligence and negotiating phases of the process, up to and including closing