When you are considering taking your business to market, you can expect that it will be acquired by one of three types of parties: a company seeking strategic growth prospects, a private equity group seeking investment for cash flow purposes, or an individual investor looking for an opportunity to invest in privately held companies. When Deal Capital takes a company to market it seeks to maximize the selling price of your business by bring all three types of buyers to the table and creating a negotiating dialog.
Companies Seeking Strategic Growth
Deal Capital creates a list of companies within a geographical location and industry focus that would allow the acquisition to meet strategic growth benefits. Once that list is created it ensures that none of the companies listed are direct competitors of the marketed company thus avoiding damages that could accrue. Those companies are then contacted directly and given a teaser letter that reveals some details about the company prior to signing a Non-Disclosure Agreement (NDA).
Private Equity Groups
Deal Capital has established long lasting relationships with private equity groups that allow its partners to be some of the first informed whenever an acquisition opportunity comes available. It also has connections to many private equity groups through databases that allow it to market opportunities directly to the mentioned groups.
Private investors are continually looking to invest in various opportunities for various reasons specific to their needs. These needs may include individuals who would like to become an owner operator, or who are simply just looking for cash flow for investment purposes. While it is sometimes difficult to find such individuals, usually they find the opportunities through website postings.
While it is sometimes easier said than done, Deal Capital seeks to increase the value of a business by finding the party that is willing to pay the most for the opportunity at hand. When there are many buyers investigating the company the leverage turns from the buyer having many opportunities to purchase to the seller having many opportunities to sell.