Barrington Partners Strategic will typically develop a process that may include either an auction or a targeted group of highly confidential contacts. In such a process, our input also entails:

• Developing Target Lists: Creativity needs to be part of developing the lists of potential sellers. There are always obvious targets but we often find that the buyer thought to be the most obvious is the first firm to exit. It is our experience that sell-side projects have an advantage if they are introduced to potential buyers quietly and through the right channels.
• Market Multiples: When the engagement starts, we will produce data on transaction comparables, market comparables and intrinsic valuations that will provide information on market multiple rates. Barrington Partners Strategic will make a point to discuss market multiple data with the potential buyers in order to set expectations for pricing.
• An Offering Memorandum is an opportunity ‘tell the story’. We have considerable experience in researching, preparing and writing these documents. It is essential to not only provide basic information on the firm for sale, but what are the drivers of the company/division that will make a transaction more attractive than other options. It is our belief that providing more information is best since it means less risk for the buyer.
• Transaction Structure: Structures can be complicated based on what the buyer plans to do with the business: stand-alone or integrate. Our experience includes working with buyers who would like to complete the sale and pay in cash because tracking a business unit that is commingled with internal business units can present accounting difficulties. We have worked with sellers that would like to retain some interest in the growth of the business over some transition time period. We have extensive experience developing models of submitted bids, and negotiating with potential buyers over both the structure and price.