How mertz’s proven expertise can help

When you work with Mertz Associates, you get much more than just a “finder.” We work closely with you to understand your strategies and objectives. Then we carefully identify all possible fits and help you select the best options to pursue. Our comprehensive contact methods generate significantly more opportunities than traditional approaches.

We also help you anticipate and avoid problems throughout the acquisition process. By heading off misunderstandings, you can prevent disconnects that commonly affect buyer/seller negotiations.

Why buy a business?

Acquisitions can be an excellent way to:

• Gain additional market share
• Add product lines
• Expand distribution channels or markets
• Add manufacturing or distribution facilities

How do you find the right acquisition?

At Mertz Associates, we believe acquisitions should be based on strategic objectives. One of the most effective ways to stay on target with your objectives is to know all your options.

Unfortunately, many companies take a reactive approach by simply waiting for sellers to contact them. Smart buyers identify, research and develop as many prospects as possible to ensure they find the best acquisitions at the fairest prices.

What’s involved in buying?

There’s more to a successful acquisition search than contacting potential prospects and hoping for a response. You have to understand each seller’s motivation and differentiate yourself from other buyers through research, preparation and transaction structure.

• Research and preparation-It’s important to learn about each prospect and industry. Be prepared to demonstrate how an acquisition could result in benefits not available to either business as separate entities.
• The right approach-Your approach should be well thought out and customized to individual prospect needs. Presenting your interest in a non-threatening way increases your chances for dialog.
• Seller/key management involvement-To build support for the merger, consider performance and bonus incentives for key employees.
• Willingness to pay a fair value-A fair value incorporates the long-term potential of the business.
• Borrowing capability-Be sure you have the necessary resources to proceed. The fewer financing contingencies, the stronger your offer will be.
• Due diligence-The proper business, legal and accounting due diligence is crucial to protecting your interests.
• Documentation-Discoveries during due diligence need to be properly translated into agreements and overall negotiations.

What it takes to be successful

Successful buyers tend to have similar characteristics, including:

• Credible strategic motivation
• Flexibility
• view problems as opportunities
• adapt to interactive process
• Sense of urgency
• decisions made promptly by a strong leader
• involvement of operating personnel
• Experience buying companies
• Financial capability with a realistic perspective on pricing and value

Mertz Associates, Inc.
One Riverwood Place
N17W24222 Riverwood Drive, Suite 305
Waukesha, WI 53188
Tele: 262-523-4200 I Fax: 262-523-4202