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Translating Business Challenges into Viable Solutions

Mergers & Acquisitions

Acquiring a company to grow, or exiting by selling your business is an extremely important decision. Mergers and acquisitions entail a process that requires a lot of expertise, experience and diligent, hands-on work.
 
InterAmerican Investment Group, Inc. has the experience, expertise, focus and connections to facilitate your mergers and acquisitions needs for many sectors and types of companies. We are also partnered with top tier investment banking firms that can facilitate larger transactions on a global basis, as needed, for certain types of technology companies. 

Valuations and Trends
Valuations of privately-held companies are at a premium today. Specifically, technology companies’ valuations are extremely high at this point in time. Many factors in the market can effect or erode these valuations.

Time-frame
The time-frame to complete a transaction can vary greatly depending on the M&A market, industry, size of company, complexity of technology or products/services, number of prospective buyers, financial performance, and the extent of the due diligence process. The time-frame to complete a transaction can range from two to four months or longer to properly prepare, secure and negotiate a Letter of Intent (LOI), and another two to three months to perform due diligence, finalize the legal documents and closing.

The Sale Process
InterAmerican Investment Group, Inc. has over 30 years of business advisory and mergers and acquisitions experience. Our twelve step process is comprehensive, hands-on and focuses on the successful closing of a transaction that meets your goals.
The following is a summary of our M&A process:

  1. Acquire the Needed Information to Develop a Strategy and the Criteria for Acquiring a Company or Selling Your Company
  2. Create a List of Targeted Companies to Acquire or Sell to Based on Your Criteria
  3. Preparation and Research of Valuations of Targeted Acquisitions, or to Maximize the Value of Your Business; Creating/Updating the Business Plan and Forecast/Offering Memorandum; Creating a PowerPoint Presentation to Concisely Present Your Business; Review of Your Financials, Assessing the Valuation Range; Due Diligence Preparation; Defining How an Acquisition Will be Funded and Other Needed Preparation
  4. Initiate Contacts to Targeted Sellers, or Acquiring Companies if Exiting; Schedule Conference Calls or Meetings to Answer Questions on the Executive Summary and Engage with Sellers or Acquiring Companies to Generate a Letter of Intent (LOI)
  5. Generate an LOI for a Targeted Seller, or Secure LOI(s) from Acquiring Companies of Your Business; Execute an NDA with Each Targeted Seller or Acquiring Company Submitting an LOI; Negotiate the Optimal Price and Terms; Ensure an Acquiring Company has the Funds to Close a Transaction
  6. Finalize the Negotiation of the LOI, including Compensation for the Owners/Management; Consult with a Corporate/Transaction Attorney and Tax Advisor/CPA, as needed, to Minimize Taxes
  7. Initiate the Due Diligence Process to Validate the Many Aspects of an Acquisition
  8. Complete the Due Diligence Process and Renegotiate Specific Terms of the LOI, as needed
  9. Review and Work Together Through the Asset Purchase Agreement and related Legal Documents and Consult with your Corporate/Transaction Attorney and Tax Advisor/CPA Firm to Finalize All Legal Issues and Minimize Taxes; Complete the Asset Purchase Agreement including Final Negotiations of All Points
  10. Execute Internal Legal Documents to Approve and Complete the Acquisition or Sale of Your Company
  11. Finalize all Aspects of the Legal Documents and Secure Updated Financials from Seller, or Provide Updated Financials to the Acquiring Company, as needed; Final Preparation to Close the Transaction
  12. Execute the Legal Documents and Close the Transaction; Pay Funds to Seller or Receive Funds for the Sale of Your Company; Initiate the Post-closing Integration Process and Requirements

Sale of Your Business:
InterAmerican Investment Group, Inc. provides M&A advisory services to facilitate the sale of your business with three options in order to:
  1. Maximize your selling price
  2. Create optimal terms for you and your shareholders, and
  3. Minimize your taxes

Sale by Working with a Hands-on Advisory Team

Working with an M&A advisory team consisting of a corporate/transaction attorney, tax advisor/CPA and InterAmerican Investment Group, Inc. as your business advisor, negotiator and liaison will provide the M&A services you need, coupled with the experience and expertise to complete a transaction and enable you to maintain a healthy, growing business during the entire M&A process. 
InterAmerican Investment Group, Inc. provides business and M&A advisory services to help you to:

  • Prepare for the sale of your business and increase your ability to secure the right buyer at an optimal sale price
  • Research and formulate a complete targeted buyer list
  • Initiate the contacts to targeted buyers and generate interest with the goal of securing a Letter of Intent (LOI)
  • Negotiate the LOI, while keeping you insulated from any head to head conflict with buyers and save you time to run your business during this rigorous process
  • Finalize the LOI and ensure you have a qualified buyer that has the financing to complete the transaction and is the right fit for you
  • Work through the Due Diligence process along with you and the buyer and make sure the deal remains strong and intact with minimal or no changes to the terms. 
  • Work as a liaison between you, your corporate/transaction attorney and tax advisor/CPA to get through the Asset Purchase Agreement deal points according to the LOI and work through any tax and legal issues to yield the highest return to shareholders with the least tax burden.
  • Ensure the deal gets finalized, funded and closed as timely as possible to accomplish your goals.
  • Assist with any needed post-closing integration issues to elevate the success of any contingent compensation

M&A Markets Turn to Roll-Ups


Small, mostly privately held entities in fragmented industries. The strategy is for the acquirer to merge with other industry players to create a larger, more sophisticated company. Key influences include:

  •  Competitive cost pressures.

  •  The ability to offer a broader product or service mix.

  •  The ability to go public.

  •  Ability to enhance technology and systems.

  •  Diversification of customer and market risks.

Key questions

  1. Is the industry segment appropriate for this strategy?

  2. Is the strategy more than aggregation of companies?

  3. Are the target companies easily identified?

  4. Dot targeted companies have a compelling reason to sell or merge?

  5. Is the valuation process of the partner companies fair?

  6. Are the capital structure and sources of financing appropriate?

  7. Does consideration (cash, notes, stock) balance the personal and business needs of all parties?

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