The sale of a privately owned company is perhaps the single most important transaction an owner will undertake in their career. Such transactions are complex and often elicit strong emotions. Accordingly, skilled, objective advice is indispensable. Green Tree Capital’s professionals position themselves as a trusted buffer between the parties when dealing with the difficult issues that arise during negotiations.
Green Tree Capital can provide assistance from the very beginning of the sales process. In the middle market, that means preparing the company for sale two to three years before an exit is planned. Careful planning and positioning are keys to maximizing value.
Vital to concluding a successful transaction in today’s merger and acquisition market is the identification of a company’s key value drivers –those tangibles and intangibles that differentiate and set a company apart from its competitors. Such value drivers might include proprietary products, proprietary processes, proprietary technology, the brand name, facilities, location, customer base and turnover, a recurring revenue stream versus one-off sales, patents, the distribution system, switching costs, research and development, “first mover” advantage and more.
How It Works
Green Tree Capital’s services are specifically tailored for each assignment and adhere to a disciplined approach. Each business is thoroughly analyzed to identify the key value drivers that create above average returns. A comprehensive memorandum will be prepared that includes financial statements and projections, products and/or services, customers, organization, manufacturing, distribution channels, competitive advantages, weaknesses and opportunities of the business.
Next, prospective buyers are identified from careful screening of our proprietary database, online databases, industry trade associations, trade directories, trade publications and industry contacts. Once identified, each potential buyer is approached on a strictly confidential level.
Upon acceptance of a written offer, our firm works closely with the client’s attorneys, accountants and other professional advisors to complete the final negotiation of a definitive purchase agreement to consummate the transaction.
“Aerodynamic Engineering was founded in 1967 and in 1991 my partner and co-founder wanted to retire. We were introduced to Green Tree Capital by our long-time outside accountants and engaged the firm to sell the company. Several attractive prospective purchasers were identified by Green Tree Capital’s principals. Once it was decided to sell the company to American United Global, Franz von Bradsky very worked closely with the professional advisors of both parties to expeditiously complete the due diligence process as seamlessly as possible and consummate the transaction.”
Fred Mayer, President and co-founder of Aerodynamic Engineering