We represent owners in sale of their business. We clarify the seller’s personal and professional goals, create and distribute Investment Memoranda describing the offering, identify prospective buyers, and facilitate negotiations.
We conduct Due Diligence on prospective acquisitions. Activities include financial and operating review, on-site interviews, customer interviews, and market analysis. We produce formal written report for investors and fund managers describing business’ strengths and weaknesses. Recommendations are presented to fund leadership and selected investors.
Working closely with owners and executives, we develop a multi-year plan for merging separate entities into a single business with a united focus. These plans include goal setting, new methods for tracking whether goals were achieved; revised organization structure; retention plan for key contributors; recruitment strategy; improvements to systems and technology; enhancements to office environment; and 5-year financial performance objectives and budgets.
Following the merger, we lead task forces to consolidate multiple divergent compensation plans into a single unified compensation system with a consistent methodology. This involves reviewing and reconciling differences in both base salary levels and variable pay program mechanics (i.e., incentive opportunity, measures, targets, payout frequency, payout caps, management overrides, etc.). We recommend a pay for performance philosophy, incorporating market data to build salary ranges and performance ratings to determine where employees fall in those ranges. We also design incentive plans to unite all employees and facilitate teamwork among the two previously separate companies.
Employee Earn-Out Plan
We design and develop post-acquisition Employee Earn-Out plans to encourage and reward employees for maximizing final purchase price over a multi-year period. Plans incorporate annual and multi-year measures and payout modeling under various performance scenarios. Plans carefully differentiate earning opportunity based on job type and tenure to maximize the motivational impact, minimize turn-over, and optimize profits.