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Sell Side Services
Decagon Partners recognizes that our best client is an informed client whose needs we thoroughly understand and with whom we have clear timely communication. With that said, client advocacy is the cornerstone on which we have built our sell side services. We recognize the value of information, and the context in which it is positioned. We emphasize confidentiality, detailed market research, discrete marketing to potential acquirers, honest and effective deal structuring and negotiations. Our sale process is tailored to the specific needs of each individual client. Our approach involves creating multiple alternatives to maximize shareholder value.
Our role
Decagon will act as the Company's exclusive financial advisor to market the company to selected strategic and financial buyers as appropriate. Decagon will familiarize itself with the business, operations, properties, financial conditions and prospects of the Company. Decagon will contact potential candidates for which Decagon and the Company believe to be appropriate for a Transaction. Decagon will meet with representatives of such candidates, as are approved in advanced by the Company, and provide such representatives with such information about the Company as may be appropriate, subject to customary business confidentiality. Decagon will advise and assist the Company in considering the desirability of Transaction, and, if the Company believes such Transaction to be desirable, in developing a general negotiating strategy for accomplishing the same. Decagon will advise and assist the management of the Company in making presentations to the Board of Directors and preferred and significant shareholders of the Company concerning any proposed Transaction. Decagon will advise and assist the management of the Company in the course of its negotiation of Transaction and participate in such negotiation.
A summary of the process
Decagon Partners will work with the management team of the Company to prepare a "book" to market the sale offering. The book will include an executive summary/overview of the company to delineate the "sale offering". The book will also include historical and prospective operational and financial information. The goal of the book will be to clearly present the value of the company to prospective buyers. This phase of the process will be the most time consuming as Decagon will strive to work with the management team to identify all strategic, operational, financial and cultural issues to ensure that the maximum value may be attained upon sale.
Decagon will have strategy planning sessions with Company management to identify and assess which buyers may be interested in the sale offering and why they would be interested. The goal will be to differentiate the suspects from the prospects as early as possible. As the types of buyers may vary from strategic to financial, Decagon will work with management to effectively tailor prospect presentations.
Decagon Partners strives to set realistic expectations for its clients. To that end, Decagon will provide the company with a valuation range (based upon both quantitative and qualitative data) that the company should expect to garner in the open market.
A well-informed management team is one of the company's greatest assets. With that goal in mind, Decagon will ensure that the management team is well prepared and informed throughout the transaction by managing the process including:
- Reviewing the due diligence and transaction process with senior management,
- Overseeing the due diligence process and data "room" (track data and documents, issues and overall logistics)
- Communicating with key constituencies
- Negotiating and structuring the deal terms
- Responding to issues surfaced during due diligence
- Negotiating the purchase agreement and other ancillary documents
- Working with the company's lawyers and accountants and other deal team members on all deal-related legal, accounting and regulatory issues
Exclusive Sale Representation
Decagon will act as the Company's exclusive financial advisor to provide the Company with such advice as may be customary and appropriate to exploring and developing a sale transaction, including reviewing the elements which contribute to value, advising on sale transaction alternatives, identifying, evaluating and contacting selected parties with the Company's approval and participating in negotiations on the Company's behalf with such parties. Such negotiations will take into account price, form of consideration, compatibility, and timeliness.
Corporate Divestitures
Corporate managers, buy-out funds, and entrepreneurs rely on Decagon Partners to execute a targeted auction sale of their business. Our Partners are experienced professionals who have extensive experience as corporate buyers and with corporate buyers, buy-out funds and entrepreneurs. Our Partners negotiations take into account price, form of consideration, compatibility, and timeliness to provide the overall value to our clients.
Recapitalization
A business owner seeking estate diversification and liquidity but desiring to remain active as an owner and manager should consider a recapitalization. Sale of a minority or majority equity interest will generate capital while allowing the owner to maintain a leadership role and participate in future equity appreciation. Recapitalizations also are an excellent way to minimize estate taxes while transferring ownership to the next generation.
Growth Capital Financing
Many early stage and middle market companies often find that there ability to grow their company by investing in new products, services or markets is constrained due to a lack of available capital. Decagon Partners will help entrepreneurs successfully raise private equity, subordinated debt and senior debt to provide owners of high growth companies with the opportunity to accelerate their growth.
After completing a business plan, the first big hurdle in attracting private capital is garnering the attention of venture funds. Capital sources will generally review thousands of deals per year and make their initial determination of interest based upon a cursory review of the business plan presented to them. With only a limited opportunity to catch the attention of investors, companies need to put their best foot forward right from the start. Decagon Partners has relationships within the Capital Financing community and understands the intricacies of the capital markets. Decagon Partners will work with its clients to present a story which highlights historical performance while stressing future value.
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Sell Side