Buying a Company, Green Tree Capital

Green Tree Capital acts as financial advisors to owners of privately owned “middle market” companies who are seeking to grow their company and to private equity firms seeking to grow a portfolio company or establish a new investment platform. These companies have a proven track record with sales/revenues in excess of $7.5 million.

All client engagements are treated with the utmost confidentiality.

Green Tree Capital has acted as financial advisor in numerous mergers, acquisitions, divestitures and financings. The resulting transactions have spanned a diverse range of products, services, industries, geographic locations and sales/revenues levels.

The key to concluding a successful transaction in today’s merger and acquisition market is identifying a quality company whose owners have reasonable valuation expectations. More often than not, the companies that Green Tree Capital’s acquisition search identified were not being marketed for sale. This provided many clients with excellent acquisition opportunities not available to other potential acquirers. The absence of competition very often resulted in purchase price multiples that were well below market.

Our services are specifically tailored for each assignment and adhere to a disciplined approach. Our firm assists a client company in developing an acquisition strategy. Acquisition search parameters are then established including industry, revenue size, profitability, geographic location, etc.

A confidential client business profile, contact letter and confidentiality agreement are prepared to make the initial approach to target companies on behalf of our client. Each prospective target company is approached on a strictly confidential basis.

Once a target company has expressed an interest in selling, our firm will obtain financial statements, financial projections (if available) as well as information on products and/or services, customers, key employees, manufacturing capabilities, distribution channels, workforce, facilities, etc. from the owner.

In conjunction with our client our firm will help identify the value drivers of the target company - those tangibles and intangibles that differentiate and set it apart from its competitors that can be exploited in the future. They may include one or more of the following: proprietary products, proprietary processes, proprietary technology, brand name, facility, location, patent, customer base and turnover, recurring revenue stream versus one-off sales, distribution system, high switching costs, research and development, "first mover" advantage, etc. This analysis will play an important part in determining the amount to offer the owner.

Upon acceptance of a client’s written offer by the prospective seller, our firm works closely with the client's attorneys, accountants and other professional advisors to complete the final negotiation of a definitive purchase agreement and consummate the transaction.

Business Acquisitions - Buying a Company