Glossary of Terms
Financial Analysis – A review of the business from a numbers perspective. An assessment of the Quality, Viability & Stability of revenues, cash flows & profitability of a business.
Market Price Determination – A realistic projection of the value range buyers in the marketplace might place on the business given recent activity on other businesses in the same industry.
Sales Analysis – A review of the company’s sales to gain a more in depth understanding of the different revenue sources generated by the business and their recent trends. This is also compared to inventory and receivable collections to compare the businesses efficiency to other investment opportunities in the marketplace. Further, such analysis looks generally at the effectiveness of the sales team, customer concentrations, customer records and customer discounts/collection/margin issues.
Customer Analysis – Collection and evaluation of data associated with customer needs and market trends.
Internal Team Analysis – A review of an organization’s strengths and weaknesses that focuses on those factors within its domain, primarily management & employees. Topics such as salaries, tenure, projected retirement, family, and skills
Positioning for Optimal Value – Meet with management to thoroughly understand the company, how it services the marketplace, the barriers to entry, what makes the business unique and aspects of the business that create the most value.
Company Story & Evolution – The story of the business – how it began, challenges it over came, risks it took to grow and thrive, and its perspective on the future of its market.
Marketplace Analysis – an examination of the price and terms which similar businesses in the same industry/space/size recently sold.
Industry/Competitors Analysis – facilitates a company’s understanding of the businesses position relative to other companies that produce similar products or services.
Growth Drivers – What are the keys to growth, what are the bottlenecks holding it back.
Marketing to Premium Buyers – Beacon will create an Acquisition Opportunity “Teaser”, a 30 to 40 page Profile, and research private equity group holdings for investments which may be a fit with the subject business to identify strategic buyers who may be a strong fit to purchase the company.
Deal Negotiation – Work closely with your CPA and Attorney to negotiate the best deal possible for you and your company in terms of price, terms, legal considerations and tax minimization.
Due Diligence – A buyer’s review of the business to confirm all facts, such as reviewing all financial records, plus anything else deemed material.
Transaction Management – Once a buyer and seller shake hands on a prospective deal, things really get complex. Bankers, appraisers, accountants, lawyers, insurance agents all get involved. Keeping all these professional focused, reviewing the correct data and timely making decision can be the difference between a deal that closes in 90 days, 180 days or dies on the vine as interest wanes. Beacon works to keep their interested parties on task to prevent the interest from waning and to shorten time frames where possible.