In-depth experience in a number of merger and acquisition related services can play a surprisingly crucial role in any merger and acquisition transaction.
Sikich offers three other important merger and acquisition services for both the seller and the buyer. When Sikich represents the seller in a deal, we will not offer these services to the buyer. There are important issues besides price and terms that greatly affect the real value of a deal to both the seller and the buyer after the closing. Sikich handles these issues by offering these three services:
Wide Ranging Merger and Acquisition Tax Strategies
One of the Sikich's specialties is providing a wide range of creative merger and acquisition tax strategies before a transaction takes place to maximize the after-tax value of the transaction. The following strategies are tailored to be consistent with the risk tolerance of the individual:
- Maximizing discounts on transfers of closely held business assets before the sale to shift value to future generations.
- Structuring transactions to allow both the buyer and the seller to maximize the tax benefits available.
- Participating in the negotiation of the critical issues of deal structure and allocation of asset values.
- Considering a wide range of options that can include use of insurance and off-shore investments, among many others.
Our tax professionals are uniquely qualified to help you address the important succession planning issues and to achieve your estate planning goals. In many cases, it is appropriate to provide this consulting in conjunction with your existing professional advisers.
Business Valuation
Sikich offers buyers or sellers the expertise of CPAs who have earned the Accreditation in Business Valuation (ABV) from the American Institute of Certified Public Accountants. We can assist buyers or sellers evaluate the "fair market value" of a company in accordance with the Uniform Standards of Professional Appraisal Practice. We also help buyers determine the "strategic value" of a company using financial modeling and other techniques to evaluate existing or potential synergies in the areas of operations, financing and personnel.
Financial Modeling
Financial modeling involves forecasting or projecting future financial results under a variety of assumptions. The model is customized to the business so multiple forecast scenarios can be run based on a matrix of assumptions.
Financial modeling can also provide valuable information on how much a buyer should pay for a business and how much the buyer can afford to borrow on a deal.
One goal of the modeling effort is to identify the optimal financing structure. Financial institutions look favorably on receiving this type of sophisticated information. By taking some of the guesswork out of the future, financial modeling frequently can assist in obtaining the necessary funds for the deal.
The individuals performing this specialized work are experienced CPAs and advisors.