While every situation is different and poses its own unique challenges, there are some fundamentals to our approach in common.
With our more than 28 years of experience, we have had many of the same questions arise.
Here are some frequently asked questions about working with Equity Partners HG – from entrepreneurs and referral sources – to help you get started on your journey with us.
Q: Why not do this myself?
A: Evidence shows that using a professional investment banker or capital advisor costs you less than the value added by their work. We have many clients and colleagues who wholeheartedly agree. While we get results quickly, what we do is extremely time consuming; you just can’t do this yourself and manage a business, too. Our experience is invaluable. We have built solid relationships: After nearly 30 years, we know a lot of lenders, investors, and buyers, and what industries, size of business, stage of business, they like. We bring them the deal – your deal – at the moment they begin to look for it.
Q: How do you get paid?
A: We try to set up our compensation so that our interests are aligned with yours. Some or all of our income is dependent on you accepting a solution and it getting to closing.
Q: What happens if the accepted deal falls apart?
A: Because we are careful about selecting the winning investor, lender, or buyer, this rarely happens. We like to have “backup bids” so that, should your chosen partner, buyer, lender not close for whatever reason, we have a readily available plan B, which is often almost identical to plan A, and no time is lost.
REVITALIZE | Special Situations FAQs
Q: What’s more important – bankruptcy savvy or industry-specific experience?
A: You don’t need an industry-specific expert. You need a firm highly experienced in bankruptcy, foreclosures, assignments for the benefit of creditors. You need a firm that understands the laws and the pressure points and can get investors, buyers, and lenders to move quickly.
Q: I already have one interested investor or buyer, so why start a process with you?
A: Pursuing only one solution is not in your best interests for two reasons:
1. It is impossible to know if that option is truly the best deal without any market comparison
2. If the deal falls through, you have lost valuable time.
We test the market to evaluate the deal you have while sourcing multiple offers at the same time. Our process provides you with the best possible offer, not just one.
Q: Can’t I just do this myself?
A: We see things you may miss. Working with a credible third party such as Equity Partners HG not only dramatically improves the businesses chances of survival, but it can help mitigate personal guaranty exposure and litigation risks.
Q: Why not wait to see if I can turn this around, or get some financing, and then contact you if I need you?
A: The sooner you get help, the more options you will have to achieve your business goals.
Q: My business has really dropped off and the bank won’t wait for a sale process. Can you do something right now?
A: Even when you think it’s too late, and the business is dead or near dead, we can often find going concern transactions. We’ve brought multiple offers to the table in less than 30 days on numerous occasions. Creditors get more patient when they know we’ve been hired.
Q: How long will it take to find a solution?
A: Our process is usually 60-90 days from retention to closing.
Q: Can you do valuations for litigation and fairness opinions for plans?
A: Yes. Our partner, Jerry Wilcoxon, is a CPA/ABV and CVA and member of the American Institute of Certified Public Accountants, National Association of Certified Valuation Analysts and a member of the Maryland Association of Certified Public Accountants. His valuations are often used for such purposes. Our Senior Managing Director, Ken Mann, has been an expert witness in numerous bankruptcy cases as well.
CAPITALIZE | Corporate Finance FAQs
Q: We think we can raise some equity, or can get a better rate on our loans down the road, why hire you?
A: Until you test the market and look at all financing options, you are planning around hypotheticals not real options. A true market test will show what is actually available in a competitive environment.
Q: Can’t I just send my financial data to a bunch of lenders and get a loan?
A: While that sounds like that could work, if you don’t present the information in the right way and to the right people, you will not find financing. We can help with that. Our relationships can really help you.
MAXIMIZE | MERGERS AND ACQUISITIONS FAQS
Q: Isn’t a purchase really simple? Why do we need your help?
A: You’ll want to know you got the best deal possible. We turn over every stone to find opportunities you may not see. Through market competition, we give you higher value and more choices. Another point to consider is that deal structure matters and can make a huge difference in how much of the sale price you get to keep. We will help you with that.
Q: How do I know if this is the right time to exit?
A: As you decide if you are better off selling now or trying improve the company, you need to know what’s going on in the market as well as what the market forecast is for the next few years. We have that intelligence.
Q: How do I know what the likely outcome of a sale will be?
A: Our valuation expert can give you a realistic appraisal.
Q: What if the appraised value isn’t good enough?
A: Often, there are some things you can do to improve the value you receive on exit in a relatively short timeframe of one to three years. We can help you identify those things and help you evaluate the risk rewards ratios, the time value of money, and other critical variables. You’ll then make the best decision to exit now or to execute the improvements before pursuing a sale.
Q: What if I’m more concerned about finding the best future for the company, not the best price for me?
A: We understand that money is not the only consideration in your decision-making. We will advise you on how to pursue the best options for your specific goals and circumstances and make sure you pass the company to the right successor(s).