Merger and Acquisition Transactions
Parties who are involved in merger or acquisition discussions, or who anticipate being involved in an M&A transaction, often rely on Cross Northwest for objective and independent advice regarding the structuring and pricing of the transaction.
In almost every M&A transaction involving a closely held business or fractional interest, one of the first, most important and difficult questions to settle is, “How much is it worth?” Buyers want to know investment value for potential targets. Because valuation can have such a significant effect on the acquiring company’s financial returns and shareholder value, management should bring in a third-party valuation expert as early as possible during the acquisition process. Sellers likewise want to know what price their business would likely command in the market place.
All participants need objective analysis, experience and conclusions they can trust. Because of our M&A advisory work, Cross Northwest’ appraisers have exceptional knowledge of the real-world behavior of transaction participants. Our independent valuations are considered exceptionally credible by buyers, sellers, boards of directors, trustees and management when considering and making important transactions.
Cross Northwest provides valuations for a range of transactions, including sales, mergers, acquisitions, divestitures, management buy-outs, employee stock ownership plans (ESOP’s), leveraged buy-outs, capital raising, bank financing, recapitalizations, going private, liquidations and bankruptcy. A client may need a fairness opinion (a third-party confirmation of value) to complete a transaction that has already been negotiated. We evaluate transactions from a strategic or financial buyer viewpoint, based on client objectives and the specific circumstances of the transaction. Mergers often require that two or more companies be valued.
As M&A advisors, our transaction services often go well beyond valuation. We also work with clients through the entire M&A process to ensure successful business sales, and provide services for acquisitions and other business transactions.