M&A Advisory

Seacap is sensitive to the dynamics of owning and operating a privately-held company. By managing the sale process from start to finish, we build value for businesses that are bought, sold, or passed to the next generation.

Preparing well in advance of a transaction can dramatically enhance the transaction value, so we focus on business planning, process improvements and financial performance. Seacap helps strengthen the balance sheet and improve the income statement. We also provide direction on timing a business sale through value-mapping against market conditions and performance metrics. Our clients avoid the guesswork of when and how to sell.

Buy-Side Advisory

Survey & Assess

Survey & assess the buyer’s goals and objectives in order to clearly define the search parameters.

  • SWOT Analysis for Making an Acquisition: This initial step involves an in-depth look at the purpose and intent in making an acquisition. We evaluate financial and operational risk factors as well as the challenges of integrating and/or running an acquired business. Lastly, we assess the rewards that come with success.
  • Qualification & Development of Financial Criteria: We analyze each client’s financial resources, investment capacity, targeted return on investment, growth objectives, and eventual exit options. Using proprietary resources, we also assist clients in assessing their post-acquisition management and administrative capabilities.
  • Development of Acquisition Criteria: Similar to a conventional job-seeker’s resume, this profile is used to stimulate deal flow by presenting a client’s qualifications and acquisition criteria (industry focus, geography, revenue/earnings range, etc.) to advisors and owners of target businesses.
Identify & Evaluate

Identify & Evaluate acquisition targets against specific search criteria using traditional business appraisal methodologies.

  • Search & Discovery: Seacap seeks to identify multiple acquisition candidates using market-tested processes for target screening.
  • Initial Assessment: Acquisition targets are initially assessed by reviewing the history of operations, ownership structure and the workforce talent. We evaluate market coverage, competition, and the sales and marketing process, followed by a preliminary financial analysis, value assessment and suitability analysis.
  • Due Diligence: Once a target is under contract, diligence is conducted in the following areas: business planning; industry and market factors; sales and marketing processes; real estate; facilities, property and equipment; technology needs; environmental, health and safety; legal and financial; intellectual property; insurance and risk management.
Acquire

Acquire the right target after making an informed, unemotional and strategic decision.

  • Letter of Intent, Offer to Purchase & Negotiation: Along with the client’s other professional advisors, Seacap offers support with composing, presenting and negotiating the offer once an acquisition target is qualified.
  • Financing: Seacap assists in constructing financial forecasts in order to secure acquisition funding and working capital.
  • Closing & Post Closing Support Services: Seacap facilitates the removal of contingencies and supports the client’s legal and accounting advisors as needed. In addition, we can be re-engaged after the transaction is complete to help ensure a successful integration.

Sell-Side Advisory

Prepare for a Transaction
  • Analyze financial statements; previous and future anticipated acquisitions; supplier relationships; industry condition; and competitive environment
  • Assess strategic advantages and assist with developing a forward business plan with proforma projections for continued growth
  • Perform a business valuation in accordance with professional standards or assess a client provided valuation for reasonableness
  • Prepare a Confidential Information Memorandum (CIM) and Pitch Presentation that describes the offering
  • Research the universe of potential acquirers and define a strategy and procedure for running a confidential yet competitive process
  • Reach a mutual agreement on the range of value and potential terms & conditions for a successful transaction.
Execute the Sale and Transition
  • Qualify and screen potential acquirers/investors
  • Contact potential investors and secure confidentiality agreements
  • Present the CIM and Pitch Packet to selected acquirers/investors
  • Secure indications of interest  from selected potential investors
  • Obtain Letters of Intent from potential acquirers
  • Negotiate the terms and conditions for the transaction on behalf of client
  • Lead the due diligence process following execution of a Letter of Intent
  • Coordinate the closing documentation with legal and accounting advisors