Seller Representation for Full Sale Transactions
- Analyze business owner goals and transition options
- Create marketing materials to highlight the key value drivers of the business
- Explore the universe of potential buyers to identify and contact top private equity and strategic investors
- Lead negotiations and assist in the preparation of data room, legal documents, financing, and other closing activities
Recaps and Management Buyouts
Seller Representation for Recapitalization and Management Buyout Transactions
- Access capital for shareholder liquidity, business expansion, or both
- Position key employees to become shareholders through the transaction
- Find experienced investors who can help execute a strategic growth plan
- Position current and/or new shareholders to benefit from a second liquidity event in the future
Getting Ready for a Transaction
Preparing for a Transaction and Advisory Services
- Diagnose and assess current company status with a focus on key performance indicators
- Identify issues requiring attention to maximize value before a transaction
- Educate and update business owners on value drivers and industry-specific M&A issues
- Schedule periodic advisory meetings to track progress on key issues and deliverables
Other Advisory Services
Value-added Service Offerings
- Valuation Advisory Services: Prepare professional valuation of the business to identify value drivers and considerations for a potential transaction
- Debt Advisory Services: Assist companies to access the right bank or other lenders for future growth
- Buy-Side Advisory Services: Execute full process of identifying and approaching target companies to meet long-term strategic objectives
The Chinook Capital Advisors Process
Define Shareholder Goals
- Understanding who the stakeholders are
- Articulating the ideal outcome, including personal, professional and
- Identifying potential obstacles and issues in advance
- Discussing timing considerations
Evaluate Transaction Options
- Analyzing valuation and considerations
- Processing pros and cons of different transaction options in line with personal, professional and financial goals
- Evaluating timing considerations for each option
Determine Value Proposition
- Understanding the business strengths and weaknesses
- Understanding and evaluating key value drivers
- Positioning potential investor/buyer considerations in advance
- Focusing on growth opportunities
Identify Optimal Buyer Profiles
- Deep dive research into entire universe of potential buyers
- Tiered approach with close interaction from client
- High touch personal outreach to buyers at senior level
- Attention to detail maintains confidentiality
Project Manage Sell-side Process
- Project managed to ensure momentum and certainly of close
- Dedicated team approach lead by co-founders
- Beginning to end support from preparation to close
Questions most often asked by business owners and their trusted advisors:
Business owners regularly ask us what the value of their business is. We have written about it in the following articles:
- What the heck is adjusted EBITDA and why is it so darn important?
- Of Course, Enterprise Value = EBITDA x the Multiple… Uh, So What’s the Multiple?
The bottom line is that value is based on the amount of financial benefit that the company is expected to generate in the future. This can be estimated either by calculating the present value of the expected future cash flows or by using recent past performance to help predict the future value. This second method is quite common in private company valuations and is calculated by multiplying pre-tax operating income, or EBITDA, by a valuation multiple.
EBITDA X Multiple = Enterprise Value
EBITDA = earnings before interest, taxes, depreciation, and amortization
EV / EBITDA Multiple = commonly used business valuation multiple, determining whether a company is “overvalued” or “undervalued” compared to the market.
Enterprise Value = the sum of the market value of equity and the market value of debt of a company, less any cash.
A typical sale process takes between 6 and 8 months. There are six primary phases in a typical sale process, from pre-sale preparation to closing activities.
This is a very common question. Chinook’s fee structure is designed to be simple. There is a monthly retainer spread over 3 months and a success fee calculated as a percentage of the deal value, net of monthly retainers. The Chinook team receives the success fee when you are paid.
Monthly Fees + Success Fee
We work with business owners to build value prior to beginning the sale process.
These are the common steps and risks that should be addressed in preparation for a transaction:
Chinook provides a differentiated approach for clients requiring M&A advisory services. Our unique value proposition can be found in the quality of our team, our relentless focus on serving Pacific Northwest business owners, and our proven track record of success.
- Relevant careers in professional M&A roles and business valuation expertise
- Diverse degrees including accounting, finance, engineering, and juris doctor in law allows every client to benefit from the full resources of our entire team
- Experience guiding owners from various industries including manufacturing, distribution, business services, technology, healthcare, and consumer products
- Deep investor relationships with industry-specific private equity groups and strategic market players
- We exclusively focus on privately-held businesses based in the Pacific Northwest
- We work as one local team for each client and care about your legacy and our reputation because this is our home
- We act as your trusted advisor and hold your hand through each step – from the beginning to the end of the process
- Over 50 years and 100 completed transactions of experience
What Our Clients Have To Say
Chinook’s business insight and advice to the management team helped position our company as an attractive acquisition. Their knowledge of potential investors and their strategic approach of introducing our company to investors resulted in a premium valuation for the business and a successful sale. I would recommend Chinook Capital without qualifications to other family, small or medium sized businesses.