Vissant’s focus is on crafting unique corporate financial solutions to address the specific needs of a client, not on trying to guide the client down a predetermined path.
Often, that means that non-standard ideas, customized transaction structures or non-traditional funding sources will be considered to complete a challenging corporate financial assignment.
Vissant recommendations are always fresh and candid, and are often different than other alternatives that a client is considering. In all cases, Vissant is committed to providing solutions that it believes will maximize the value of the client company and for its shareholders over the long term.
Mergers and acquisitions transactions are an effective way for middle market growth companies to either acquire another company to expand the products that they are able to offer, markets they address and customer bases they serve. In the alternative, the other side of an M&A transaction is one where the company makes the decision to combine with another company to capitalize on their consolidated strengths. From either perspective, Vissant is in an ideal position to assist and advise acquirors with their growth plans and sellers with their processes.
The M&A process is an elaborate one from the perspective of either buyer or seller, and is not a process in which most companies are regularly active. The decision for a company to engage an M&A advisor is a calculus based on recognition of a number of factors, including:
- Consuming management’s time and attention from regular business activities during the transaction process, which should be expected to take 120 – 180 days
- Having an experienced party engaged in structuring, negotiating, documenting and closing a transaction with which the client company is not familiar
- Having an intermediary between the client company and the other party that can deliver difficult transaction terms or provisions that could otherwise undermine a long term relationship with that party
- Maintaining a confidential, targeted process in industry niches that tend to be gossipy and socially networked
- Achieving an incremental valuation for the business that exceeds the “success” fees that will be paid to the advisor
Vissant has many years of experience with sell-side and buy-side M&A transactions. Each of its clients has performed and weighed the calculus above and concluded that engaging Vissant was in its best interest. Moreover, many of Vissant’s clients have confirmed the comfort with their decisions by engaging with Vissant for subsequent transactions and opportunities.
Almost by definition, middle market growth companies require capital to sustain their growth and to capitalize on corporate financial opportunities. The challenge is to find the ideally suited financing partners and to structure a capital plan that minimizes the company’s cost of capital while it optimizes its flexibility and ability to grow.
Capital for growth companies can take any number of attributes based on the source of funding and the obligations of the company to accept it. Funding sources will vary based on the facts and circumstances, and will be driven by the investor’s perceived balance of risk and expected returns. As an advisor for capital formation, Vissant advises its client with the expectations of how investors will perceive that balance, and advocates for that client with investors to achieve a mutually satisfactory balance.
More frequently than ever before, Vissant is working with unique companies that have embedded assets or whose assets are undervalued in the market. Most times, that valuation mismatch is the result of intangible assets, including intellectual property, patented or proprietary products or processes, or some other protected market position. It is an exciting time among knowledgeable IP advisors and investors and, as middle market growth companies continue to be the engine of ideas and innovation in our economy, there is no shortage of undiscovered and undervalued intangible assets in that sphere.
There are no simple capitalization answers for middle market growth companies, even within the same industry or niche, and no capital alternative is “one size fits all.” Vissant has deep experience in arranging customized corporate financial solutions that utilize multiple strips of capitalization to optimize a client’s cost of capital.