merchantbanker.ca

Corporate development is a term that references the variety of planning options and strategies that can help to move a company toward its goals. The process of this type of strategic development can be applied to just about any facet of the corporation’s organizational structure. In actual structure, corporate planning can involve finding ways to fine-tune the existing structure of the company or expanding the company’s interest through acquisitions or mergers.
One of the more common manifestations of corporate development has to do with reshaping the management arm of the corporation. This may involve a process of phasing certain management positions out of the existing structure or creating new positions in an effort to strengthen the management team. As part of this type of approach, corporate development may also demand that one or more current managers are released from the company and replaced with people who possess skills required to move the company forward. When this is the case, the corporate development team will handle the functions of recruitment and evaluation of potential hires.
Just as a management team may be revamped, corporate development may also be employed to change the current focus for clients. This may mean looking into the potential for breaking into new markets with existing products or developing complimentary products that will allow this type of expansion. Depending on the status of the base market, corporate development may also look at shifting away from a shrinking consumer market while seeking market share in a different consumer market with newer products. For example, many typewriter manufacturers during the 1980’s and 1990’s slowly phased out their core business and began to focus more on computer parts and accessories as a way to continue operations.
The process of corporate development can also be applied to the task of growing the company through mergers and acquisitions. In this scenario, the project development will involve identifying potential target companies for acquisitions or unions resulting in a new and more aggressive corporation. The team will consider all possible outcomes from any given potential merger or acquisition and attempt to project if the action is likely to result in positive growth or could possibly impair the company permanently.
There is no one tried and true formula for the process of corporate development. The actual structure of the corporate strategy will depend greatly on the current circumstances of the company and the area where the development is desired. In most cases, the process will not be of short duration; corporate development is usually a process that takes place over an extended period of time and may be adjusted or refined as the project moves forward.

The team at Merchant Banker drive growth of the business using the Independent Review to identify target, establish structure and manage business for sale transactions. As a Merchant Banker, we believe you have to look at what the inherent challenges are to determine whether to invest time and resources to buy the firm, and then design the appropriate implementation strategy to manage it.” So companies must always be flexible when bringing a new company into their organization. All acquisitions are different and they will and usually demand different approaches. Sometimes, it may be best to merge operations of the two companies immediately to avoid duplication of expenses; other times depending on value proposition, keeping them separate may be preferable. The key is to decide and define what is the real reason for the business acquisition? Sounds simple, NO!
Business acquisitions can be a strategy of merger, accretion, consolidation, buyout, we prefer to use a phrase coined for this market situation called “business assimilation” which we mean and define as the ability to blend the strengths of an organization and the acquired company into the acquiring infrastructure while maintaining and increasing the revenue producing side for the business, through more products and services that fit the customer needs while reducing and eliminating the expense side of the business into the existing infrastructure for improved margin management. This reality brings with it an opportunity for those bold enough to pursue and restructure their companies with the ability to find success in a new world where “No decision is a decision!”
The current economy also provides resourceful companies who identify sales value in target and account management in their infrastructure with a plan for “business assimilation” through acquisitions of old world companies with customer opportunities supporting increased purchasing without assuming and increasing the fix cost by establishing an incremental earn-up model. Accretion company opportunities can be leveraged based on their financial situation using a combination of payout and earn-up structures, due to the significant market pressures they are under to stay alive and the market reach and improved survival going with a national player who has scope and size.
Other inherent benefit of an acquisition that involves first a payout then an earn-up agreement and a Vendor Take Back note is it may provide access to a motivated seller and a potential new employee. Other benefits include an upside potential, and additional resources to retain management and protect the base of the business that was acquired. Some of the targets will provide significant consolidation of the local market through a utilization of strategic account management teams assigned to drive revenue out of the acquisition. Presently targets of this nature could also provide companies with improved gross margins.
The business assimilation strategy can also provide the company management with access to new and more creative sources of capital and continue risk reduction by leveraging against seller valuation methodology while tied to a measurable return on investment for both parties.

Merchant Banker provides a key component in developing new business revenue by helping you, invest in the Independent Review and establishing an improved plan for increased sales, account management and guaranteed measured results. The Independent Review is not just a merchant banker product with a history of success but a process for growth companies to acquire new customers through strategic sales and business acquisitions. Keep in mind the Independent Review also gives you access to an experienced and knowledgeable team. By completing your Independent Review we provide the executive leadership group with skilled sales resources, alternative sources for lowering cost and a creative outsourcing model. No ongoing annual commitment to retain a full time employee and the associated expense.

Some of the benefits of using our Independent Review:
a) Your firm through our Prospectus builds a better understanding of critical industry, competitor and business issues affecting the business.
b) We support the strategic planning process, including developing business strategies and action plans, while conducting ongoing tracking and measurement of those plans
c) Advisory and consulting services to internal stakeholders on a range of business issues through the use of research and analysis to drive insight and recommendations.
d) We oversee the collection, analysis and interpretation of qualitative and quantitative data from multiple data sources, including primary and secondary market research as well as internal data, using a variety of research and analytical methods to arrive at key findings and implications
e) Together we work to identify, scope, business case and incubate new opportunities (adjacent businesses, new industry sectors, geographic expansion)
f) We identify and assess strategic acquisition opportunities, including the development of the business case and participation in due diligence and deal process
g) Your Merchant Banker will Lead and develop team by helping to structure and guide specific projection oriented work efforts and provide coaching/teaching relative to the core research and analytical skills required of the corporate development role.

We execute assigned projects with excellence, ensuring all key stakeholders are satisfied. And the fact is your firm will succeed by executing and managing new customer integration plans and realize your revenue growth potential through our Independent Review.

Since 1987, growth companies have engaged merchantbanker.ca to complete transactions. Our capabilities include the planning, implementation and execution of strategies to meet specific organizational objectives.

Merchant banking activities falling under the corporate development process include initiatives such as:
a) Strategic selling which involves developing and closing a sale with a program for phasing in or out of certain markets or products
b) Asset-based funding by securing creative financing alternatives
c) Executive recruitment for new management team members
d) Business acquisitions by identifying and acquiring target companies

Reporting directly to the executive leadership, compensation is based on a negotiated combination of:
1) Preparation fees (per-diem charge) not exceeding one percent of the total consideration
2) Closing commission (progressive billing) not exceeding five percent of the total consideration
3) Participation equity (monthly payment) as an agreed-upon determined percentage of the total consideration

Keep in mind, there is no perfect formula for “corporate development”, or for the activities encompassed. In most cases, corporate development is first provided in an advisory capacity as a mandate for a particular executive or team, and the situation and issues are normally stringent and complex enough to justify Merchant Banker specialists.

A key example, if a company is looking towards non-organic growth expansion, a corporate development group with merchantbanker.ca would be established to evaluate and contact potential businesses (such as small to medium private and public companies located across the globe), and through our Independent Review we maximize shareholder wealth.

We provide suppliers and businesses with a host of options, including access to a variety of lenders and investors. All with the purpose of helping buyers/sellers remove the money objective for client situations. We support client quotes by providing real time answers to real problems and situations where a creative alternative will make all the difference.

A critical element of business success is the preparation stage. This stage of business growth involves the planning component for completion of a project. The team at Merchant Banker have a philosophy – If your deal was prepped properly, your deal would be done. Do you want to get your deals done in today’s market? have Merchant banker prep you for funding that next acquisition. We come on site for one full day, interviewing and gathering the necessary information and documentation required for a lender or investor to make the right decision. You will be ready for all the questions, documents and financial requirements.

Have you ever had a supplier, customer or associate approach a Financial Institution for Funding? Does the conversation sound something like this “they keep asking me for more documentation more documents mean more questions, I don’t have time for this. I have a business to run.“ If you know someone that this has happened to, they have not been prepared for the capital raising process. You can use your own resources once you have prepared. We guarantee for our closing commission the network and resources.

If you are trying to sell your business and the buyer can’t seem to arrange money to complete the transaction, your business has not been prepared for funding, and selling your business will be that much more difficult. If you focus on preparing your business for funding, then you will make yourself far more attractive to a prospective buyer.

A series of questions and answers are part of the process used by Merchant Banker to identify and establish a process for a successful conclusion to a transaction.

How much time have you spent in preparing to fund this transaction?

What is the deadline for funding this transaction?

Who do you normally fund your company with your bank or personal equity?

Where did you find your resources to fund your business in the past?

When is the Independent Review Process necessary and what is it?

Why do we “Guarantee” our closing sources through a commission agreement?

Finance Amortization

We provide the source, resource and outsourcing capabilities to remove the silent killer of most transactions, MONEY! By contacting a merchant banker we will assess your situation using financial analysis, operational assessment and arrange the capital necessary to complete your project on time and in budget.

We analyze financial statements and compare to industry performance, then evaluate strategic business operations before assembling and publishing documents relevant to completing the transaction. We will also save time, money and effort through our Independent Review Report.

What should you do when you feel your options have been limited, contact a merchant banker!

If your business is for sale, management buyouts (MBO’s) provide management with a unique and risk managed way to buy the business. Keep in mind, Worldwide, Management Buyout’s are a well established way of buying a business. They are often a vehicle for management teams to achieve financial freedom.

Frequently, should they choose to do so, management buyout teams are in a position to make favorable exits or sales of their businesses within five years of purchase. With that financial freedom comes the choice of different lifestyles and much greater flexibility with which to plan for the future.

To access this opportunity the management team must be fully committed to driving the business to new levels of success and to investing a manageable level of upfront capital in the purchase of the business.

For a financing perspective, you’ll have a much easier time securing capital from lenders by taking over an established business, than starting one from scratch. Not to mention, you’ll dramatically minimize the financial risk to yourself and your finance partners because the company will have proven revenue and a customer base. Many lenders will fund 50% to 75% of the acquisition cost for businesses depending on a number of factors such as the cash flow numbers, assets and security available.

Outlined below are the ten primary advantages of business acquisition vs start-up:

1) Much lower risk of failure,
2) Business generates cash flow from day one (preferably positive cash),
3) Proven business concept and processes,
4) Proven products, services, marketing and sales strategies,
5) Established customer base providing referrals and references,
6) Established suppliers,
7) Trained employees in place, Immediate credibility and perception of success,
9) Seller likely to lend support and may assist with financing,
10) Easier to secure affordable financing to complete the acquisition.

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“KEEP IN MIND WHAT YOU DO AS A PART TIME JOB, WE DO AS A FULL TIME JOB!”

A management buy in (MBI) occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company’s new management. A management buy-in team often competes with other purchasers in the search for a suitable business. Usually, the team will be led by a manager with significant experience at managing director level.

The difference to a management buy-out is in the position of the purchaser: in the case of a buy-out, they are already working for the company. In the case of a buy-in, however, the manager or management team is from another source.

Buy-in Management Buyout (BIMBO)

A buy-in management buyout is a combination of a management buy-in and a management buyout. In the case of a buy-in management buyout, the team that buy out the company are a combination of existing managers and individuals from outside the company who will join the management team following the buyout.

Merchant Banker is a creative alternative Funding solution that buyers, sellers, lenders and or investors, rely on to complete a transaction.

We provide you with a compensation model up to ten percent of our fee’s, and request an email or call to schedule follow-up and discuss opportunities with merchantbanker.ca We are experienced in a variety of debt and equity instruments and look forward to your review of our website and a referral of a client, associate and or executive. Our funding, consulting and recruitment capabilities will benefit your customers that is our guarantee.

“Preparation Fee” provides companies with a daily rate to outsource a detailed and independent analysis and assessment of their operation and financial situation from a capital raising perspective.

“Closing Commission” provides companies with a network of sources to complete funding for the asset or business and resources to build management team.

“Participation Equity” provides companies with the necessary investment shortfall and advisory outsourcing to identify, establish and implement a strategic growth plan.

We are always looking for opportunities to put money in your pocket by supporting persons and people requesting funding! Ask yourself what situations are you aware of that capital or personnel are required for growth and survival of a business?

Colin S. Marcelline
Merchant Banker
Phone/Fax 905 726-4495
E-mail colin@merchantbanker.ca
Web http://www.merchantbanker.ca

NOTICE OF CONFIDENTIALITY
This communication including any information transmitted with it is intended only for the use of the addressees and is confidential. If you are not an intended recipient or responsible for delivering the message to an intended recipient, any review, disclosure, conversion to hard copy, dissemination, reproduction or other use of any part of this communication is strictly prohibited, as is the taking or omitting of any action in reliance upon this communication. If you receive this communication in error or without authorization please notify us immediately by return e-mail or otherwise and permanently delete the entire communication from any computer, disk drive, or other storage medium.

AVERTISSEMENT DE CONFIDENTIALITE
Ce courriel, ainsi que tout renseignement ci-inclus, destiné uniquement aux destinataires susmentionnés, est confidentiel. Si vous n’êtes pas le destinataire prévu ou un agent responsable de la livraison de ce courriel, tout examen, divulgation, copie, impression, reproduction, distribution, ou autre utilisation d’une partie de ce courriel est strictement interdit de même que toute intervention ou abstraction à cet égard. Si vous avez reçu ce message par erreur ou sans autorisation, veuillez en aviser immédiatement l’expéditeur par retour de courriel ou par un autre moyen et supprimer immédiatement cette communication entière de tout système électronique.

For the process of funding, we use our Independent Review to evaluate the business situation, and provide a detailed analysis of the financial statements including and not limited to interpretation and where necessary a report. Then we use our assessment interview which involves a system to identify and provide a perspective of your company. This arrangement will include and utilize a series of questions to evaluate performance and clarify business objectives.

The final component of our process is a discussion and confirmation of your situation. Only then do we establish a resolution and a plan to resolve your current capital requirements.

Feel free to visit our website to review our Independent review Process Report and other documents used in Funding. We prefer financials for all the companies that will be involved in funding and qualify relevant information that would assist your company in meeting its goals. Let me know which days work and what additional details you will require on our end to schedule and complete a business per diem meeting.

Colin S. Marcelline
Merchant Banker
Phone/Fax 905 726-4495
E-mail colin@merchantbanker.ca
Web http://www.merchantbanker.ca

NOTICE OF CONFIDENTIALITY
This communication including any information transmitted with it is intended only for the use of the addressees and is confidential. If you are not an intended recipient or responsible for delivering the message to an intended recipient, any review, disclosure, conversion to hard copy, dissemination, reproduction or other use of any part of this communication is strictly prohibited, as is the taking or omitting of any action in reliance upon this communication. If you receive this communication in error or without authorization please notify us immediately by return e-mail or otherwise and permanently delete the entire communication from any computer, disk drive, or other storage medium.

AVERTISSEMENT DE CONFIDENTIALITE
Ce courriel, ainsi que tout renseignement ci-inclus, destiné uniquement aux destinataires susmentionnés, est confidentiel. Si vous n’êtes pas le destinataire prévu ou un agent responsable de la livraison de ce courriel, tout examen, divulgation, copie, impression, reproduction, distribution, ou autre utilisation d’une partie de ce courriel est strictement interdit de même que toute intervention ou abstraction à cet égard. Si vous avez reçu ce message par erreur ou sans autorisation, veuillez en aviser immédiatement l’expéditeur par retour de courriel ou par un autre moyen et supprimer immédiatement cette communication entière de tout système électronique.

Merchant Banker is a creative alternative solution that buyers, sellers and lenders and investors, rely on to complete a transaction.

We provide a compensation model and request an email or call to schedule follow-up. We are experienced in a variety of debt and equity instruments and look forward to your review of our website and a client, associate, executive, that would benefit from our funding, process and recruitment capabilities.

“Preparation Fee” provides companies with outsourcing a detailed and independent analysis and assessment of their operation and financial situation from a capital raising perspective.

“Closing Commission” provides companies with a network of sources to fund the asset or business and build management team.

“Participation Equity” provides companies with the necessary investment shortfall and advisory resources to identify, establish and implement a growth plan.

We are looking for opportunities to put money in your pocket by supporting request for financing and investment! What acquisition or situation are you aware of that capital or personnel are required for growth and survival of a business?

Colin S. Marcelline
Merchant Banker
Phone/Fax 905 726-4495
E-mail colin@merchantbanker.ca
Web http://www.merchantbanker.ca

NOTICE OF CONFIDENTIALITY
This communication including any information transmitted with it is intended only for the use of the addressees and is confidential. If you are not an intended recipient or responsible for delivering the message to an intended recipient, any review, disclosure, conversion to hard copy, dissemination, reproduction or other use of any part of this communication is strictly prohibited, as is the taking or omitting of any action in reliance upon this communication. If you receive this communication in error or without authorization please notify us immediately by return e-mail or otherwise and permanently delete the entire communication from any computer, disk drive, or other storage medium.

AVERTISSEMENT DE CONFIDENTIALITE
Ce courriel, ainsi que tout renseignement ci-inclus, destiné uniquement aux destinataires susmentionnés, est confidentiel. Si vous n’êtes pas le destinataire prévu ou un agent responsable de la livraison de ce courriel, tout examen, divulgation, copie, impression, reproduction, distribution, ou autre utilisation d’une partie de ce courriel est strictement interdit de même que toute intervention ou abstraction à cet égard. Si vous avez reçu ce message par erreur ou sans autorisation, veuillez en aviser immédiatement l’expéditeur par retour de courriel ou par un autre moyen et supprimer immédiatement cette communication entière de tout système électronique.