Oxford Merges & Acquisitions, Inc.
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The Marketing Process

  1. Information Gathering: To begin the process we will need several pieces of information:
    • Last two year-end income statements and balance sheets
    • Year-to-date income statements and balance sheet
    • A completed questionnaire
  2. Determining Value Ranges: Once we have received the information, we will re-cast and adjust the financials to reflect standardized industry measurements. With this information, the partners will meet and discuss opportunity, degree of difficulty, potential buyers and past transactions to arrive at a projected market value range we believe could be achieved. The value will be stated using adjusted multiples of EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted to reflect non-recurring charges, owners perks, excess compensation, taxes, depreciation, interest and any other add-backs we can support under due-diligence. In addition, we adjust the balance sheet where necessary in an effort to understand the net asset value of your firm.
  3. Value Discussion: Within three days of the receipt of your information we will have value discussion with you to see if the price ranges we generate match with your expectations. It is important to remember that pricing a firm is not an exact science. Ultimately, the buyers establish the value. If our proposed ranges meet your expectations, we will then move to the next step.
  4. Relationship with Oxford: We can represent the buyer and they will pay our fee, or we can represent you in an exclusive and pro-active marketing effort. It is always in the seller’s best interest to let us represent them. Ultimately, the transaction pays the fee. Our responsibility is to our client. If we are not representing you, we cannot work simultaneously with multiple buyers. Our goal, through the process of working with multiple buyers, is to find the one with the best strategic fit and to initiate a sort of competitive bidding process that will drive the value to the high end of the range. If you want us to represent you, we will sign an Engagement Letter.
  5. The Marketing Process:
    • Develop a potential buyer list by cross-referencing your business characteristics with our buyer's acquisition criteria in our database
    • Review with seller to discuss any additions or deletions
    • Create a summary and blind profile for your company
    • Distribute blind profile and Confidentiality Agreements to agreed-upon buyer list
    • Call all respondents to qualify operational and financial consistency
    • Forward business summaries to all qualified respondents
    • Answer all questions/issues associated with business
    • Schedule buyer/seller meetings in person or via conference call
    • Receive LOI’s (letter of intent) and recommend counter offers/negotiations
    • Work with selected buyer’s due diligence team to ensure a smooth and timely process
    • Move the LOI to a definitive agreement and work with all advisors to protect your interests
    • Close the transaction, and work to prepare seller for transitional issues