Phoenix Business Broker Provides Alternative Funding Sources for Mergers & Acquisitions of Private Companies in Arizona
February 23, 2013 (PRLEAP.COM) Business NewsMerger and acquisitions specialists at Deal Capital announce several strategic partnerships for enhancing funding and divestment options for owners looking to sell-out of their position(s) in private companies. The Phoenix business broker has ample experience in brokering middle market business deals from $5 million to $200 million in annual revenue. The company's latest move involves lining-up potential individual buyers with alternative funding sources for doing deals in the lower mid-market.
Funding Deals in Lower Middle-Market Mergers & Acquisitions
Middle-market mergers and acquisitions encompass an extremely broad range of valuations, industries and considerations. The lower middle-market of M&A can be especially unique in that the deals are smaller and both buyers and sellers tend to be less-sophisticated than in larger deals. In addition, funding options for such deals have often been lacking. While the SBA offers great incentives for assisting in the efforts of business transition from one owner to the next, there is often still a windfall in the amount required to seal the deal and what they buyer has available to make a sizeable down-payment.
This is one of the big areas where investment bankers are separated from business brokers. Bankers tend to steer clear of deals that require more work and more hand-holding with usually less than optimal results (only 30% of the smaller deals ever actually sell). For smaller deals, Deal Capital has partnered with a number of local boutique business brokerage houses as well as some firms with expertise in business financing via alternative methods.
Alternative Funding Sources
When SBA lending and private personal funds are not enough to fund an acquisition, Deal Capital helps to facilitate other opportunities. Seller-held notes, performance earn-outs, private equity (including private placement with retirement funds) and even wealthy partnerships can all help to get a deal done where it may have been previously difficult.
"We ultimately recognize that finance can be as rigorously creative as much as it was rigorously analytical," says Troy Jenkins Marketing Manager for Deal Capital. "Ultimately, how we get deals done is dependent on both art and science. The valuation requires almost 100% science. We put the art into getting the deal done."
About Deal Capital
Deal Capital is a middle market M&A advisory firm with offices in Phoenix and in various locations across the country. The company mostly spends their time helping long-standing business owners sell their position of ownership in the businesses they helped to found and grow over a lifetime. For more information on how Deal Capital can help you sell a business, please visit the company's website.