The System

Genesis Business Group has developed a highly effective method for assessing, packaging and marketing the companies it represents for sale.  The process is thorough and labor intensive.  But, it has been proven to produce results that substantially surpass the results achieved by many other firms in the industry.  The process includes four distinct phases:

Initial Assessment
In this phase of the process, the Genesis team performs detailed analysis of financial and operations data to determine 1) the marketability of the company based on the current market environment and 2) the reasonable value or price a client can expect to receive for the company.  The prospective client is asked to provide tax returns and financial statements along with key operating data that allows the Genesis team to gain a full understanding of the company’s operations and its financial strength.  A member of the Genesis team typically “interviews” the prospective client to learn the story of how the business reached its current position and what opportunities lay ahead for the company.

When analysis of the company is completed, Genesis uses its resources to review the sale of comparable businesses in the same or similar industries, analyze industry and economic factors that impact the value of the business, and determine a reasonable offering price for the company.  Only after Genesis has completed its analysis and proposed an offering price is the prospective client asked to sign an engagement contract.  If the prospective client wishes to move forward with an engagement, Genesis begins the Packaging phase of the process. 

Packaging
In the packaging phase, the Genesis team prepares a detailed Offering Memorandum that will ultimately be provided to interested buyers.  The Offering Memorandum is normally a 20 to 40 page document that provides interested and qualified buyers with information essential to determining their level of interest in pursuing the company for acquisition.  Key components of the Offering Memorandum include:

• Company History
• Description of Products and Services
• Details on the Customer Base and Revenue by Product Mix, Geography, etc.
• Sales and Marketing Efforts of the Company
• Employees and Management
• Competition, Risk, and Economic Data
• Detailed Financial Analysis

To facilitate the package process, the client may be asked to provide more detailed information and reports such as: sales by customer or geographic region, listing of employee positions/salaries/benefits, explanation of variances on the financial statements, etc.  Genesis makes the process as unobtrusive as possible.  But when the client participates by providing as much detail as possible, Genesis is able to more fully and accurately present the offering to prospective buyers.    

Buyer Research and Marketing
Genesis has developed a multi-faceted approach to marketing the companies it represents.  The firm achieves an above-average success rate because we employ a very aggressive approach to marketing each deal.  Based on the type of company offered for sale, Genesis will employ a combination of direct contact with known buyers, direct contact with Private Equity Groups that have expressed general interest in the type of company offered, direct mail to potential strategic acquirers, listings on selected Internet sites, and networking with other M&A advisors.  All marketing is conducted in a confidential manner.  The name and location of the company and its owner(s) are not divulged until a prospective buyer has been qualified and a Non-disclosure Agreement has been signed.

Genesis aggressively markets its clients’ companies to strategic acquirers, meaning that we directly target acquirers that have a good reason to own a company like the client’s company.  This could be a larger company in the same industry that wants to expand its geographic territory into the area where the client operates.  Or, it could be an investment fund that owns a portfolio company that has certain synergies with the client’s company.  Strategic buyers often pay stronger prices for companies that meet their requirements, so this is where Genesis focuses a significant portion of its effort.      

Negotiation and Closing    
When a prospective buyer is identified, a site visit is usually conducted so the buyer can meet the owner, see the facility, and gain a better understanding of the business and its operations.  If the prospective buyer is interested in making an offer for the purchase of the company, we ask the buyer to submit a proposed Letter of Intent or Term Sheet in writing.  No negotiations take place while the client is present.  The Genesis team presents offers to the client and makes counter offers on the client’s behalf.  The management at Genesis carefully advises the client to ensure that the best possible offer is obtained.  When acceptable terms are reached, the due diligence and closing processes begin.

Genesis is with the client every step of the way to facilitate the due diligence process by interacting with the purchaser’s attorney and representatives, as well as the client’s attorney, to provide the needed information and address any issues that arise.  All requests for information and site visits come through Genesis so we can assist the client with every aspect of the due diligence and closing process.