Our Mergers and Acquisitions (M&A) practice provides differentiated, value-added advice, and sell-side advisory services to our middle market clients facing complex strategic decisions and transactions. We typically define the middle market as transactions ranging from $15 million to $200 million in aggregate value. We believe that optimal client service is provided by the most experienced and skilled professional bankers available that share in our “client-first” philosophy.
Our senior bankers all average over 25 years of experience and have collectively completed $50 billion of M&A transactions. Our senior bankers have a broad range of experience ranging from billion dollar public transactions to smaller private sale engagements in both the M&A and financing arenas. Most importantly, our senior bankers fully commit themselves to each client and the successful completion of each transaction.
Differentiated Sell-side Process
Collectively, our senior bankers have completed over 130 M&A transactions for proceeds in excess of $50 billion. We have combined the lessons learned from these experiences into a differentiated sell-side process designed to achieve optimal client outcomes.
Key elements of the process include:
- Understanding client industries and potential buyers
- Documenting and confirming client objectives
- Thorough understanding and diligence of client business and financials
- Developing and drafting a formal investment thesis
- Collecting and documenting evidence to support the thesis, including potential operating improvements and/or buyer synergies
- Cold review from other senior bankers
- Preparing the highest quality marketing materials
- Developing a customized marketing program
- Active senior banker leadership in the marketing and negotiation process
We have found this approach consistently produces successful transactions, superior valuations, and very satisfied clients. An important part of our process is a detailed exploration of client financial statements to determine whether appropriate profitability add-backs exist or if client financials need to be normalized to position the Company in the best possible light.
In addition to our standard financial review, we offer our sell-side clients the opportunity to work with our Operations Consulting affiliate to perform a detailed operational review. This entails a more detailed level review of the business from a CFO’s perspective focused on opportunities for quick wins, much as a potential acquirer might look for synergies. In particular, automation and process improvement opportunities are identified to enhance profitability, reduce close times, improve management reporting, eliminate redundant staffing or address skill set gaps and improve accounting, human resource and operating systems, data, and controls. Once this review is complete, specific recommendations are made for immediate action. To the extent these operational changes impact near-term or long-term profitability, the financial impact of the agreed upon recommended changes will be modeled for inclusion in the add-backs or pro forma financials to position the seller to receive maximum credit in the purchase price from the buyer for these future benefits. Reynolds Advisory Partners works closely with our operations consulting affiliate to educate buyers on potential operational improvements and the resultant value creation as part of the overall sale process. Click here for more on Operations Consulting.
Examples of Selected Sell-side Transactions
| Client | Transaction Value ($mm) | Transaction Description |
|---|---|---|
| AO Smith (Data Systems) | 150 | Sale to Deluxe Check Printers |
| Astech, Inc | 48 | Sale to GKN Aerospace Chem-Tronics Inc. |
| Broadway Stores (Zell/Chilmark) | 1,700 | Sale to Federated Department Stores |
| Carson Pirie Scott | 825 | Sale to PA Bergner in hostile defense |
| Chromalloy American | 600 | Merger with Sun Chemical |
| Coherent Technologies Inc | 72 | Sale to Lockheed Martin |
| Continental Circuits Corporation | 218 | Sale to Hadco Corporation |
| Coto Global Solutions LLC | 80 | Sale to Language Line Holdings LLC |
| Denny's Inc | 750 | Financial advisor to Board of Directors in leveraged buyout |
| Durr Orthopedic (Bergen Brunswig) | 50 | Sale of subsidiary acquired through hostile takover |
| Dykem Company | 15 | Sale to Illinois Tool Works, Inc. |
| Eckerd (Merrill Lynch Capital Partners) | 3,225 | Sale to JC Penny |
| EDO Corporation | 100 | Merger with AIL Technologies Inc. |
| ExecuStay Corporation | 128 | Sale to Marriott Corporation |
| Funimation | 50 | Sale to Navarre Corporation |
| G. Heileman Brewing Company | 1,350 | Advisor in hostile takeover by Alan Bond |
| Gemaire (Nortek) | 50 | Sale to Watsco |
| Geodynamics Corporation | 5 | Exclusive sale |
| Geodynamics Corporation | 38 | Sale to Logicon, Inc. |
| Graphic Arts Center | 65 | Exclusive sale |
| Havco Wood Products | 72 | Sale to Citicorp Venture Capital |
| Herberger's | 155 | Sale to Proffitts |
| Homelife (Sears) | 100 | Subsidiary carve out sale to Citicorp Venture Capital |
| Ioptex | 250 | Sale to Smith and Nephew plc |
| Knott's Berry Farm Foods | 50 | Sale to ConAgra Corp |
| Leiner Health Products | 61 | Buyout by AEA Investors |
| M&H Drugs (Fleming) | 150 | Sale to Vestar |
| Macy's | 4,100 | Chapter 11 sale to Federated Department Stores |
| Making Memories | 85 | Sale to Advent International |
| Management Solutions Inc | 35 | Sale to TMP Worldwide |
| Marco Manufacturing, Inc. | 35 | Sale to Lennox Industries |
| Maritz, Inc | 90 | Sale of corporate travel division to Carlson Wagonlit Travel |
| McGraw Hill | 125 | Sale to joint venture with Nikkei |
| Meridian Insurance Group, Inc. | 253 | Sold to State Auto Financial Corporation |
| Merisel (European Operations) | 150 | Sale to CHS Electronics |
| Metrix Holdings Inc | n.a. | Sale to World Pac |
| National Health Care Systems of Florida, Inc. | 38 | Sold to Protective Life Insurance |
| Optima Bus Company | 33 | Sold to Cerberus Capital Management |
| Ply-Gem Industries | n.a. | Exclusive sale |
| Quality Food Centers (Zell/Chilmark) | 5,000 | Merger with Fred Meyer, Ralphs (sponsored by Yucaipa) |
| Reiman Publications L.P. | 640 | Sale to Madison Dearborn Partners |
| Saegertown Manufacturing Corporation | 26 | Sale to MacLean Fogg Company |
| San Diego Research Center | 42 | Sale to Argon ST., Inc |
| Sheppard Associates | 15 | Sale to Omnicom Group |
| Snapple | 150 | Sale to Thomas H Lee |
| Steeplechase Software | 10 | Sale to Schneider Electric SA |
| Stop & Shop (KKR) | 2,900 | Sale to Royal Ahold NV |
| The Midland Group | 179 | Sold to Regency Realty Corp |
| UAD Laboratories | 40 | Sale to Forest Laboratories, Inc |
| Ultrasystems Inc. | n.a. | Exclusive sale |
| University Industries | n.a. | Exclusive sale |
| Vari-Lite Corporation | 15 | Exclusive sale |
| Vitramon (Thomas & Betts) | 185 | Sale to Vishay |
| Walco International, Inc. | 120 | Sale to Bain Capital |
| WCT | 80 | Exclusive sale to Frontier Corp |
| West Publishing Company | 3,425 | Sale to Thompson Corporation |
| Western Auto (Sears) | 400 | Subsidiary carve out sale to Advance Automotive (Freeman Spogli) |
| Window on Wall Street | 13 | Sale to Omega Corporation |
| Woolworth (Canada) | 300 | Sale to Wal-Mart |
| Total | 28,841 |