We advise buyers and sellers of private companies with services such as: Financial Due Diligence; Quality of Earnings; Financial Modeling; Transaction Advisory; and Investment Banking Services. Based on a client’s needs and direction, we analyze a potential transaction with modeling support, lead the effort to market and sell a company, and/or provide the diligence support to maximize value in a transaction. ROCKPORT M&A market offerings are summarized below.
FINANCIAL DUE DILIGENCE
A private company may seek advice and assistance from an independent consultant as they consider a company sale, business divestment, merger or acquisition. Rockport is ready to serve the client wherever they are at in the transaction process. We may be engaged by the potential acquirer of another company (buy-side) or may be engaged by the target company of a potential acquisition (sell-side). The following provides an overview of these services.
Buy-side services: We support potential acquirers in various ways such as: market assessment; screening of target companies; potential transaction modeling; comparative transaction analysis; target financial statement analysis; detailed investigation and assessment of target financial statement balances; and development of target projections.
Sell-side services: We support potential sellers in various ways such as: intermediary coaching, leadership and support; transaction strategy and negotiation; potential transaction modeling; target financial statement analysis; investigation and assessment of financial statement balances.
QUALITY OF EARNINGS
The management or board of a company may request a Quality of Earnings (QOE) Report based on buy-side or sell-side services that we perform. We customize the QOE Report to provide the level of analysis and detail required by the client that may include elements such as: analysis of historical financial statements; development and/or analysis of pro forma financial statements; development and/or analysis of financial projections; assessment of balance sheet and working capital requirements; and analysis of contracts, commitments, contingencies and risks.
Prior to active deal negotiations, company management or board may seek assistance in the development of a financial model. For engagements such as this, Rockport will customize the financial model that meets the client’s needs and specifications. To build a financial model, we may obtain historical data from the company, research and analyze market and industry data, develop company projections, and build user-friendly inputs that allow us to run different scenarios and sensitivity analyses. This integrated financial model is a great tool for company management or board to consider as they consider a company sale, business divestment, merger or acquisition.
Rockport advises private companies and business owners after they have been approached by a larger company interested in a strategic partnership, investment, or acquisition. We customize our services to protect our client’s interests and support the company throughout the transaction process in a capacity that is appropriate for the client.
INVESTMENT BANKING SERVICES
Similar to boutique investment banks and merger & acquisition brokers, Rockport offers a turnkey solution to the sellers of private companies. We guide private companies through each step of a transaction process to complete the sale of their business including: valuation and market analysis; preparation of marketing materials; presentation of the acquisition opportunity to strategic and/or financial buyers; negotiation of terms with potential buyers; and completion of the transaction.
Ordinarily, these clients are private companies with enterprise values between $1-20 million. For larger transactions, we partner with a larger boutique investment bank to support the transaction process, increase the number of introductions to a full range of potential acquirers, and ensure that the client achieves the exit they desire.