Acquisitions & Divestitures
There are two ways to grow your company: Organically or by Acquisition. Organic growth is something that you do every day. Boosting revenue through increasing unit sales or developing new product lines or adjunct services. But you can also grow your company by making synergistic acquisitions.
- Have you considered consolidating with comparable companies in new geographic markets?
- What about companies that would allow product line extensions or save operating costs?
- Which business lines offer the greatest opportunity for realizing your vision?
- Are there business lines that would be better off in the hands of some other company and may free up capital to grow your most profitable businesses?
All of these can accelerate the growth of your company and the probability of achieving your vision. The question is how to do that without losing control and, at the same time, optimizing returns to investors.
Whether an acquisition or divestiture, Commenda can help management identify the ideal strategic fit for such transactions. At Commenda, when it comes to M&A, we roll up our sleeves and dig into the deal to get our clients an optimal valuation whether they are buyers or sellers.
Sometimes an acquisition or divestiture just isn’t practical and joint venture or contractual relationships make may make more sense.
- Will the acquisition divert precious capital you need for your core business lines?
- Would the acquisition risk dilution and/or loss of control when you can achieve the same benefits through a joint venture?
- Will the strategic partners open doors for your company in order to achieve your growth objectives at a nominal cost?
- Will these partners share the capital costs with you on terms that will benefit both companies?
Commenda has extensive contacts and experience in negotiating joint venture business contracts with potential corporate partners that can enhance your supply chain or distribution channels. You can trust Commenda to identify, negotiate and close on collaborative joint ventures that will benefit all parties.
Selling your business
The normal transition of a business is to start with a brilliant idea, nurture it, bring on the right people, build your customer base and service offering and create value for all of your stakeholders. At some point, you may choose to sell a division or the entire company. In other situations, it makes more sense to merge with other companies to create synergies. Because we have been here before, we know that you have options and lots of choices to make if you hope to realize the benefits of your hard work. You can trust Commenda to help you select the best option for all of your stakeholders: a merger, divestiture or a straight sale on terms that will create the best outcome for you. We know that it’s not always just the price but also the terms and the tax impact as well as the contingent liabilities that need to be addressed.
Commenda has helped many clients determine the best exit options for them and to negotiate the optimal terms. You can trust Commenda’s team to optimize your company’s value when you sell or divest, because we bring large corporate expertise to lower middle market companies like yours. We want you to realize the benefits of everything you have built.