- OUR PROCESS
Business valuations are not as simple as reviewing a company’s Financial Statements and developing a Multiple Strategy. If you try to put a value on a Tech or Internet Company in terms solely related to Earnings and Growth, you will leave money on the table when going to market. It’s critical that you work with a team that understands current trends in the marketplace, understands the Technology Sector and knows how to identify the features of your company that will place it in the best possible light to generate the highest Shareholder Value. While earnings are certainly important, and can at times be a large driver of deal multiples, bringing out the technological differences and features of a company, especially as it relates to its competitors, is just as important in driving up the value of a company as earnings.
While we are available to provide a third party valuation or appraisal of a Tech or Internet Company should the need arise, our primary focus is representing Target companies looking to Exit and Buying Entities looking to Acquire. So to this end, we have a team of experts that we work with on a daily basis, including certified third party valuation experts used by the largest lenders in the world, to provide a well-rounded approach to the value that should be placed on any given Technology or Internet Company.
Our unparalleled team of experts won’t just push a pile of appraisal papers in your direction and hope that you understand – we do things differently. We look at a business through the eyes of several industry-leading experts and work directly with you to not only create the very best vision of your company as an acquisition target, but we then sit down with you and explain the entire evaluation process from start to finish. This process is critical because as the business is prepared for and taken to market, Shareholders need to have a frame of reference for negotiation starting points. While maximizing purchase price is key, the business also can’t be over-valued, thus eroding the pool of potential buyers.
As a Shareholder in a Middle Market Company, if you are wondering what your company is worth, give ValleyBiggs a call for a consultation and valuation. Our methods are unlike our competition – we perform all of our work before we realize any earnings; thus, we make sure it’s right from the beginning. As a 100% Success-Based Firm, we take the risk out of the process for Entrepreneurs because if we don’t fully satisfy during the valuation and sales process, it cost the Entrepreneur nothing.
Our Valuations are specific to the Tech & Internet M&A industry. We are only interested in these segments, so by focusing on them, our team is able to provide a well-rounded, highly reputable valuation for presentation to lenders, buying entities and investors. Our practice of calculating business value is based on using a variety of generally accepted valuation methods in conjunction with leaders in the business valuations industry. We take the opinions created by those valuators and combine them with our experience in the industry to create the best possible offering price.
We find that our appraisals are usually a very good starting point for deal making negotiations. By setting the tone of the valuation, up front, we create a frame of reference for all parties to use as the foundation for talks. We find that this puts our clients in a position to be successful at the beginning of a transaction because we are able to generally lead the direction of talks. And given our experience in the industry, not only on the M&A side, but also on the operations side, we are able to market and sell a company far better than most brokers and bankers. It’s simple – we know these companies from the inside out, and most brokers and bankers don’t have that luxury.
- BUY-SIDE M&A SERVICES
The team of experts at ValleyBiggs focuses on M&A in the the Technology and Internet Sectors. Since we solely focus on these sectors, we are aware of virtually all transactions available to those interested in merging with or acquiring a tech or internet company. It’s a relatively close-knit space. In this respect, we are in a good position to help interested parties acquire a tech company on reasonable terms and within a reasonable timeframe.
Clients specifically find our advisory skills helpful with respect to buy side transactions because our Founders are Tech Entrepreneurs. They have acquired, sold and started up a number of Internet Companies, so they are well positioned to understand not only the economics of the deal, but the actual intricacies and operations of the target business. This is a rare skill that very few ValleyBiggs competitors can claim, and we find that it truly sets us apart.
Buy Side Services can come in a number of forms. We can help clients scale their worldwide footprint, consolidate and/or expand their categories and/or product lines. As an experienced team of experts fully entrenched in the industry, we offer a compelling, independent perspective to our clients that allow them develop their scale strategies. As a buy side advisor, we can identify marketplace trends, acquisition opportunities and assist in bringing to close potential transactions or transactions that are underway.
Our experts tailor their approach to the the buy side of a transaction specific to each client’s needs. Some clients may need help identifying and lining up support services to assist with certain aspects of a transaction, while others may need the entire process managed. We are available for either of these opportunities and anywhere in between. Here is a non-exhaustive list of ways we can help:
- Due Diligence Management and/or Review
- Pre and Post-Closing Strategy Development
- Funding and Financing
- Deal Negotiation
- Initiating Target Discussions and Strategizing on an Initial Approach
- Locating Targets
- Target Valuation Opinions
- Post-Sale Operations
- Transactional Matters and Deal Closings
- Acquisition Assistance
Whether you’re a seasoned buyer of companies that has merged a number of entities into your own, or you’re looking for a first time investment, ValleyBiggs is the partner you need to achieve success. Acquisition clients come to us in various forms, including those that are looking to buy a competitor in the space, those that have been contacted by another firm indicating they would like to sell and those that aren’t sure where to start, but would like to embark on an investment.
When it comes to handling the acquisition of a company, smart entrepreneurs know that you’re in the best position to be successful and close on a transaction if you have the right people backing you during the process. You need a team that understands the marketplace and is aware of trends and targets, solid deal makers that can keep the flow moving and a partner that has a team in place that can manage the entire process from start to finish without the need to outsource. That’s ValleyBiggs.
Acquisitions provide competitive leverage, new technology and know-how, new capabilities, access to new markets and other value-adding objectives. The key is valuing and structuring a sale correctly, mitigating risks and executing a well thought-out integration / transition plan. Since we’ve handled the acquisition process from virtually every vantage point, whether as buyers, sellers, founders looking to exit or as consultants, we’re in a position to provide assistance in a number of area, including, but not limited to:
- Acquiring Entity Preparation for Acquisition and Post-Sale Integration
- Model Target development
- Review of current marketplace deals
- Valuation & analytics
- Deal financing
- Lead negotiations
- Financial & strategic due diligence
- Merger operations strategy
- Post-transaction operations and transition services
When a client engages ValleyBiggs to work with them during the Acquisition process, they have the benefit of having a team of entrepreneurs, attorneys, accountants and executive advisors on their side. What better way is there to ensuring your success at the negotiation and closing tables than by packing the room with experts?
Our strategy has been perfected over time, but generally, and as with everything we do, first we develop a strategic plan. This plan reviews the buying entity, its team, its financial wherewithal as well as its ability to obtain funding or lending. We work directly with the client’s key stakeholders to define a strategy that make sense for the client. That includes, identifying target entity specifics, like company size, market share, industry and synergies. Once the target is well-defined, then an acquisition strategy is put into place and executed, including the search and screening of target companies.
Once one or more target companies are identified, then term sheets are developed indicating interest in the acquisition of the company. If the terms are agreed upon by all parties, a definitive agreement is executed and due diligence begins. Once due diligence is complete, the deal is amended to deal with due diligence findings and a closing is set. Following closing, an integration and transition plan is executed upon.
Our approach can be the complete facilitation of this entire process, or the management of bits and pieces of it. Our goal is to ensure the client is successful in the acquisition and we will play whatever role makes sense for the client.
- Business Valuations
Corporate valuations vary greatly depending on the industry. Luckily our qualified professionals help to value and
prepare your business for eventual sale. Our value-added services include working directly with owners and management to substantially increase the value of your business in a short period of time allowing you to walk away with a hire exit multiple. This often means expert consulting in everything from finance and marketing to business development and logistics. The valuation is viewed through the lens of an entrepreneur, not simply a careless consultant.
- EXIT STRATEGIES
Chances are that if your company is in the position to divest or sell at the mid-market level, you’ve probably seen your fair share of successes. And successful entrepreneurs know best that in order to be successful in business, you must put people around you to help promote growth and longevity. When it comes to exiting your business, that’s where ValleyBiggs comes in.
Not only can we facilitate the sale of a business using highly proven methods via a team of highly trained professionals, but we’ve acquired, sold and started up a number of Internet companies ourselves. We’ve been right where you are today, so we are in the enviable position to help you build a strategy that best suits your needs. Why work with mid-market brokers or bankers that only understand the financial side of a deal when you can work with a team that understands both the financial and operational aspects of a transaction?
Before an exit strategy can be developed, one first needs to review the company’s foundation to ensure it’s at the right stage to promote a solid transaction. Then, it’s important for the Founders and Investors to agree on an exit that puts everybody in a position to be successful. But how do you know when the time is right to sell, and if the time is right, what’s the best process to follow to ensure your company, your employees, your investors and you are protected during the process?
One of the first things we look at when onboarding a client is whether now is the appropriate time to take a business to market. In fact, it’s possible that the first time a client reaches out to us, the thought of selling is merely an afterthought – the task seems so daunting that beginning the process can be frightening. If the time is right to sell, then a strategy can be developed accordingly. If it’s not, it’s critical that a forward-looking strategy is developed in view of what you are trying to accomplish, integrating the dynamics specific to your particular company and to its industry, developing a set of benchmarks and initiatives to achieve a particular future position, and then drilling it all down into activities and action items with the ultimate goal of executing on all action items and putting the company in the best light for exit. This strategy should allow you to meet your objectives and one day exit your business when it is best position for a sale. By selling to early, or without a strategy in place to maximize shareholder value, it’s likely that you’re leaving money on the table.
We have experts on our teams that have experience consulting middle market companies on turnaround and exit strategies. Our strategy development process is based on creating value for the shareholders of our client companies. In this light, and among other things, we can assist in defining a company’s long term objectives with an emphasis on shareholder value while keeping all eyes on an exit strategy. To achieve this, we will develop detailed action plans for all stake holders, obtain strategic resources to support implementation of the plan and establish an internal working knowledge of the strategic management process.
Our process is proven, so we are confident in its ability to be successful. And the amount of assistance one client might require compared to another is highly disparate. So we let the client decide the level of service they require and we work together on creating an exit strategy where everybody wins.
- SALE-SIDE M&A SERVICES
Our team focuses on sell-side M&A transactions in the Technology and Internet Sectors. While many M&A firms provide a highly disparate, differentiated approach to capture business from multiple verticals, we believe that our team can provide the best value-added service, advice and guidance by focusing on the Technology and Internet Sectors. Therefore, that is our sole focus.
ValleyBiggs typically works on Technology M&A projects in the Mid-Market space. We define middle market as a transaction purchase price ranging from $3 Million to $300 Million in value. The experts at ValleyBiggs have sold hundreds of companies over the past 20 years, making them experts in the industry. Additionally, the Founders of ValleyBiggs own and operate multiple technology companies also in the middle market, putting them in the very best position possible to understand the nuances of a tech company sale.
Our Sale Side Practice & Procedures
The ValleyBiggs team of experts has a large network of advisors and professionals in multiple segments that are helpful in bringing mid-market deals to fruition. These include tax, due diligence and accounting professionals; attorneys (buyers, seller and transactional); post-sale transition and operational teams; and most importantly, a large network of banking, VC and private equity professionals that fund our deals. This latter part of our network is the key that drives our excellence in this sector and why we are able to close over 95% of the deals we work on. This is an unprecedented rate of success in this sector – something we tout often and have a great deal of pride promoting.
Other keys to our success, include the following processes:
- Diving deep into the client’s company to understand it – a key to ensuring that the business is well represented during the sales process
- Understanding and documenting client objectives, pre and post-sale
- Developing a digital library of documents, including financials, memorandums, pitch decks, executive summaries and prospectuses
- Interviewing Seller stakeholders to develop FAQs to minimize the time our clients must spend in front of prospective buyers
- Creating a professional marketing package that represents the business in a light most favorable to our client
- Activating marketing via a number of channels, including in the Private Equity marketplace, before investment bankers, VC groups, individual investors, and via proprietary initiatives before our highly valuable buyer list.
We generally work with our clients for 3-4 weeks before we go to market. This helps us ensure that the marketing materials to be presented to potential buyers are as accurate as possible and presented in a highly professional manner. We have found that this upfront work helps us maintain consistency throughout the sales process and has been well accepted by our clientele. An important part of our process is a detailed exploration of our clients’ financial statements, which helps determine profitability (including whether add-backs exist) and whether there is a need for client financials to be normalized to position the Company in the best possible light.
Experts in the Industry
The reasons why ValleyBiggs stands out about the rest, and why sellers are hard-pressed to find a better group to represent them in the sale of their business, is the following:
- The Founders are Serial Internet Entrepreneurs. They have hired and trained staff to understand the nuances involved in a Tech transaction, something extremely few of our competitors can claim.
- Massive network of professionals to support the transaction from start to finish.
- A mantra of ensuring that our client and its expectations come first – not our commission.
- Experts that have sold hundreds of companies in the past know how best to prepare and market the company for sale.
- Attention to detail and a high priority on confidentiality.