Mergers & Acquisitions

At Chaffe, we listen to business owners to understand their goals and the specific issues facing their companies.  Every client and business have unique needs and goals, requiring a customized approach.  Whether you are looking to sell your company, buy or invest in a company, expand your business through a strategic acquisition, or plan your exit strategy, we are uniquely qualified to help you. Our professional services are designed to find the right transaction partner for you, including outright sales, growth capital, recapitalizations, corporate divestitures, acquisition financing, and management buyouts.

Seller Advisory Services

Company Sales

Chaffe recognizes that deciding when to sell a company is one of the most important decisions a business owner will ever face.  An outright sale for the enterprise as a whole to a strategic buyer is a good solution for owners looking for an exit from the daily risks and obligations of their business. An outright sale provides immediate liquidity and diversification of wealth for business owners with limited or no participation in the continued growth of the business.  Some private equity investors will consider an outright purchase, especially as an add-on to an existing platform investment, but some degree of management transition is typically required.

The success of a sale transaction depends largely on how professionally it is conducted.  Chaffe helps clients evaluate exit options and navigate the entire sales process, which starts with an initial business valuation to define expectations and concludes with negotiations and close.  Our structured sales process helps to create the competitive tension necessary to maximize price and negotiate the best deal terms for a transaction.

 

Recapitalizations

A recapitalization gives business owners the opportunity to sell a portion of their company while maintaining a meaningful ownership stake. Owners receive current liquidity and diversify their risk by using an outside investor’s money for growth, acquisitions, research, and development. As the business grows, the owner’s equity interest grows accordingly, setting the stage for a second sale, usually occurring three to five years after the recapitalization.  Recapitalization is different from a complete sale of the company.  Controlling shareholders continue as partners and managers of the company.  Our process helps to find a private equity investor or family office that shares the ownership’s culture and vision for the future of the business.

                             Majority Recapitalizations           Debt Recapitalizations                Management Buyouts                                                             Minority Equity-led Recapitalizations          Balance Sheet Restructuring

 

Corporate Carve Outs

Competitive market dynamics and an owner’s preferred business models are sometimes subject to change.  New opportunities to grow in other business segments or regions may require that capital be raised through the divestment of less productive assets.  We work with business owners to analyze, identify and value assets that are candidates for divestment.   We design and execute value-maximizing sale processes that accomplish the owner’s business objectives.

 

 

Buyer Advisory Services

 

Buy-Side Advisory

One of the cornerstones of corporate growth is M&A.  It enables companies to expand, diversify and stay competitive.  We represent companies and private equity groups that are looking to acquire add-on businesses for an existing platform or to extend their geographic reach.  We help formulate acquisition strategies, identify prospective targets, initiate contact, negotiate terms of the agreement, and advise on acquisition financing.

 

Management Buyouts

A management buyout is an opportunity for your management team to own an established and familiar business, either in its entirety or partially, and continue its growth and success. Often, managers are supported by an outside equity investor with the capital resources to facilitate a transaction.

Sometimes buy out teams and sellers spend considerable time agreeing on a transaction before we get involved, where the price or structure cannot be funded.  The importance of our input at the feasibility stage cannot be overstressed.

Chaffe & Associates, Inc. has an impeccable reputation for its expertise in mergers and acquisitions.  Many corporations turn to Chaffe due to its depth of M&A experience and because of its continuous contact with interested buyers and sellers.  Mergers and acquisitions require awareness of the current market and a precise understanding of the goals and needs of each client.   The services provided by Chaffe give its client, whether buying or selling, step-by-step guidance throughout the process.

All M&A services, except fairness opinions, can be contracted on an hourly or contingency basis.  Fairness opinions are not provided on a contingency basis, assuring impartiality to all parties.

Visit Chaffe’s Mergers and Acquisitions Group resources page to read the group’s monthly City Business article and other related resources.