Why Use a Mergers and Acquisition Intermediary?

Byline
First, the full disclosure: we can’t be 100% objective about this question because we are merger and acquisition (M&A) intermediaries. That being said, this is exactly what qualifies us to write this article. We have the experience to know what works and what doesn’t, and we have seen many cases where engaging the services of an intermediary has helped make a deal that would otherwise break.

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Transaction Types: Mergers and Acquisitions, Divestiture and Asset Sales, Joint Ventures and Alliances, Going Private

by Tom Marx and Paul Cooperstein

Marx Group Advisors explores the four basic types of transfer of ownership transactions and explains in broad terms the situations, internally and externally, that could make one transaction preferable over the others:

Mergers and acquisitions
Divestitures and asset sales
Joint ventures and alliances
Going public or private

Download White Paer (PDF): MGATransaction Types of Mergers and Acquisitions

Lifecycle of Mergers and Acquisitions

by Tom Marx and Paul Cooperstein

There are five phases of a merger or acquisition that, if fully respected and developed, can make the difference between a successful transaction that works for all parties involved and lay the groundwork for seamless transition, or if ignored or under-executed can spell disaster.

  1. Pre-Deal Preparation and Evaluation of Transactional Assumptions
  2. Due Diligence
  3. Pre-Close Planning
  4. Post-Close Planning
  5. Post-Close Execution

Download White Paper PDF: MGALifecycles of Mergers and Acquisitions

Parts Store

Single location jobber store in Southern California supplies replacement parts to professional service providers.

  • Jobber store specializing in parts for Asian light vehicles
  • Projected annual sales are $1.2M / 65% DIFM and 35% DIY
  • Specialize in underhood, brake and chassis parts
  • One of the few independently owned and operated auto parts suppliers in their area
  • Inventory turns about 3.1 times
  • Opportunity for owner-operator to grow sales and expand territory; for existing business to add location; for competitor to remove company from market
  • Close to a major thoroughfare that features auto dealerships, retail and malls
  • Located close to a wide variety of independent and chain auto repair businesses, all located within a 5-mile radius of their location
  • Future growth can be achieved by adding inventory of parts for domestic vehicles

Contact Christine Campbell at ccampbell@marxgroupadvisors.com; 415-453-0844, ext. 112

Marx Group Advisors Assists with CRC Industries Acquisition of ChemFree Corporation

CRC Industries, Inc. (CRC) a global leader in the production of specialty chemicals for maintenance, repair and operational professionals and do-it-yourselfers within the automotive, heavy duty truck, marine, electrical, industrial, hardware and aviation markets recently acquired ChemFree Corporation, a subsidiary of Intelligent Systems Corporation.

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SOLD – DRIVESHAFT AND COMPONENTS MANUFACTURING

Midwest-based manufacturer of drive shafts

Business for sale
Respected and well-known manufacturer of new driveline products and components, primarily for on and off-highway, industrial, mining and agriculture vehicles and equipment businesses, and driveline repair shops.

  • In-house engineering and R&D designs product and components to exacting OEM specifications
  • Extensive variety of products, including driveshafts, yokes, stubs and flanges
  • Outstanding reputation for quality products, delivered on-time at very high fill rates
  • Customer base includes OEMs throughout US and Canada as well as international customers
  • Diverse customer base with no customer concentration; diverse industry sectors served
  • Experienced and loyal manufacturing team, on-going in-house training program, all cross-trained
  • Total manufacturing, office and warehouse of 54,000 square feet with easy access to major highways and excellent location for nationwide shipping
  • Present owner will stay on during transition; key staff committed to remaining with company
  • $12.7M revenue, 58% margins and 8-10% EBITDA

For more information, contact Tom Marx at 415-462-1805 or email tmarx@hartmarxadvisors.com.

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DRIVE SHAFT MANUFACTURING COMPANY

FOR SALE: Drive Shaft Remanufacturing Company

  • Manufactures / remanufactures drive shafts for cars, light and medium duty trucks and SUVs
  • In the Midwest, but can be relocated
  • Primary markets: distributors, driveline specialists, fleets and other remanufacturers
  • Focus: four-wheel drive and light truck market
  • Hundreds of different part numbers, providing coverage to a wide range of vehicle makes, models, and years
  • Current  Sales $6.5M; current EBITDA:  $1.4M
  • Owners wish to retire
  • Consistent growth in the past 4+ years
  • Excellent strategic acquisition opportunity for an acquirer that wishes to gain reliable market share
  • Upside growth opportunity to extend into other vehicle brands, regional and national fleets and other markets (company has not been aggressive in marketing and sales)
For more information, please contact Christine LeMay, Marx Group Advisors,  clemay@marxgroupadvisors.com or call (415) 453-0844 x 112.

COLLISION REPAIR SHOP

FOR SALE – Collision Repair Shop

  • Auto body and paint repair facility, jobber for paint and supplies
  • Profitable, stable, with growth potential
  • Total revenues around $700,000
  • Strong relationship with insurance companies (ICAR Gold Certified)
  • 6 Bays
  • Located in Northwest Wisconsin
  • Owners ready to retire

For more information, please ontact Christine Campbell at ccampbell@marxgroupadvisors.com; 415-453-0844, ext. 112

Marx Group Advisors Announces Formation of Collision Division

SAN RAFAEL, CA— Tom Marx, CEO of Marx Group Advisors announced today the formation of a new business segment in the collision repair/paint, body and equipment (PBE) segment of the aftermarket for mergers, acquisitions and divestitures. Marx Group Advisors Collision Division will be led by Ray Datt, vice president, and Mike Bryan, who recently joined Marx Group Advisors as its newest vice president.

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Marx Group Advisors CEO to Help HD Leadership Students Understand the Ins and Outs of M&A Activities

SAN RAFAEL, CA — Tom Marx, CEO of Marx Group Advisors will share his expertise on mergers and acquisitions (M&A) as one of the featured presenters at the 2014 University of the Aftermarket Heavy Duty Leadership program. Marx will explore the topic “Surviving and Thriving During a Merger, Acquisition, Divestiture or Other Change in Ownership” on Thursday, August 7 on the campus of Northwood University in Midland, Mich.

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