How To Handle Unsolicited Offers

Business owners may be skeptical of an unsolicited acquisition offer, but in some cases, such offers can provide great opportunities. The trouble with unsolicited offers is that anyone can make them. Potential sellers need to resolve three general issues about a prospective buyer and enlist the help of an M&A advisor.

It’s not unusual for business owners to receive unsolicited bids for their company, even if they aren’t planning to sell anytime soon. However, an unsolicited offer can be an opportunity.

The problem with unsolicited offers is that anyone can make them – and if you haven’t considered selling before now, your company probably doesn’t have a screening process in place to evaluate suitors. So it’s essential that you enlist the help of an M&A advisor who can help you research the interested party, determine whether their offer is serious and decide whether selling now is in the best interests of you and your company.

Before pursuing a deal, you need to resolve three general issues about your prospective buyer:

1) Strategy

Is the buyer’s long-term growth strategy built on continual expansion via acquisitions? Or does it operate more strategically and pursue only those companies whose products and services complement its own and will likely provide cost synergies? If the buyer is a private equity group, what is their typical ‘hold time’ until a company is resold?

2) Intentions

Does the buyer have a history of trying to snap up businesses on the cheap? If those targets declined the buyer’s offers, has the buyer continued to aggressively pursue them? Is the buyer known for honoring its original term sheets?

3) Financials

Does the buyer seem well capitalized or overleveraged? If it doesn’t have the cash to buy a business outright, is it capable of getting bank financing in what continues to be a tight credit market?

Know your own value

While you’re investigating the potential buyer, obtain a business valuation. Knowing what your business is worth in the current market is essential if you’re evaluating an offer or considering a sale right now. You might also want to approach other companies that are in the market for an acquisition. The threat of competition could improve your unsolicited buyer’s bid and scare off “bottom feeders” with bad intentions.

Be prepared

Don’t get caught off-guard by unsolicited bids. Obtain periodic business appraisals and keep your operations and financials in shape so you’ll be ready when an opportunity presents itself.

This document is for informational use only and may be outdated and/or no longer applicable. Nothing in this publication is intended to constitute legal, tax, or investment advice. There is no guarantee that any claims made will come to pass. The information contained herein has been obtained from sources believed to be reliable, but Mariner Capital Advisors does not warrant the accuracy of the information. Consult a financial, tax or legal professional for specific information related to your own situation.

BLAISE GAMMON

Analyst

Tel: (913) 904-5571 [email protected]

Blaise supports Mariner Capital Advisors on sell-side and buy-side M&A engagement, performing financial analysis, market research and due diligence. Additionally, he assists in valuations of private businesses and business interests for the purposes of mergers and acquisitions, gift and estate planning, charitable giving, and tax and financial reporting.

Blaise holds an MBA and a bachelor’s degree in finance from Kansas State University.

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CAMERON DIAMOND

Analyst

Tel: (913) 378-0408
[email protected]

Cameron joined Mariner Capital Advisors in 2021 as an investment banking analyst and provides support on valuation advisory and sell-side M&A engagements. Prior to joining Mariner Capital Advisors, Cameron was a Private Equity Analyst Intern at Apis Holdings, a middle-market private equity firm affiliated with a large family office.

Cameron holds two bachelor’s degrees in finance and management from the University of Tulsa, where he graduated with distinguished honors as a Presidential Leadership Fellow and honor student. During his time at the University of Tulsa, Cameron held leadership roles in multiple student organizations and served as the head Portfolio Analysis and Risk Chair of the university’s investment fund.

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TIM HOSIE

Vice President

Tel: (913) 904-5446 | Mobile: (816) 308-0563
[email protected]

As vice president, Tim supports the firm through sell-side and buy-side merger and acquisition engagements. He plays an active role in managing projects from start to finish, which includes preparing offering materials, financial analysis and leading due diligence.

Prior to joining Mariner Capital Advisors, Tim worked for “Big 4” public accounting firms and publicly listed companies.

Tim holds a Master of Accounting degree from the University of Missouri-Kansas City and is currently pursuing his MBA with a concentration in finance from Rockhurst University.

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ROBBIE VANTRUMP

Vice President

Tel: (913) 904-5537 | Mobile: (913) 271-9505
[email protected]

As vice president, Robbie supports the firm through sell-side and buy-side merger and acquisition engagements. Since joining Mariner Capital Advisors in 2011, Robbie has assisted on more than 60 M&A advisory engagements in varying capacities for clients across a broad range of industries including healthcare, manufacturing, agriculture, software, construction, food manufacturing, marketing and e-commerce.

Robbie provides strategic and operational support on M&A transactions and plays an active role in preparing offering materials and developing and executing go-to-market strategies. He has also helped author dozens of educational articles and whitepapers on topics related to business succession planning, business valuation and private equity.

Robbie has two Bachelor of Arts degrees in French and mass media from Washburn University.

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LIZZY FLEET, CFA

Vice President

Tel: (913) 904-5536 | Mobile: (913) 558-3136
[email protected]

As vice president, Lizzy supports the firm through sell-side and buy-side merger and acquisition engagements. She plays an active role in managing projects from start to finish, which includes preparing offering materials, financial analysis and leading due diligence.

Prior to joining Mariner Capital Advisors, Lizzy worked as an analyst in the oil and gas industry.

She holds dual bachelor’s degrees in finance and accounting from the University of Oklahoma. Lizzy holds the Chartered Financial Analyst^®designation.

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HOUSE ZHU

Senior Financial Analyst

Tel: (913) 904-5533 | Mobile: (617) 800-3559
[email protected]

As a senior financial analyst, House examines data related to mergers and acquisitions, gift and estate tax planning, charitable giving, strategic planning, buy-sell agreements and financial reporting.

He holds a bachelor’s degree in business administration from Boston University, a master’s degree in finance from the University of Texas at Dallas and a Master of Accounting degree from Washington University in St. Louis.

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JASON O'BRYON

Vice President, Valuation

Tel: (913) 904-5534 | Mobile: (785) 840-6647
[email protected]

As vice president, Jason assists in engagements for mergers and acquisitions, gift and estate tax planning, charitable giving, strategic planning, buy-sell agreements and financial reporting.

Prior to joining Mariner Capital Advisors, Jason worked in the mutual fund industry in operations and project planning.

He holds a bachelor’s degree in finance with an emphasis on management and leadership from the University of Kansas and a master’s in finance from the University of Missouri-Kansas City.

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JOHN STEVENSON

Valuation Director

Tel: (913) 904-5603 | Mobile: (612) 741-0540
[email protected]

As valuation director, John has overseen or completed more than 500 valuation engagements for mergers and acquisitions, strategic planning, buy-sell agreements, Employee Stock Ownership Plans, gift and estate tax planning, charitable giving and financial reporting, among others. He has also led teams that render fairness opinions in connection with public company sale, merger and financing transactions.

John’s industry experience includes business software and services, medical devices, building products, food processing, trucking, industrial goods and manufacturing, wholesale distribution, retail and banking and insurance.

Prior to joining Mariner Capital Advisors, John was a valuation director at BDO. Prior to BDO, he was a valuation director at RSM and a director at Craig-Hallum Capital Group. John holds a bachelor’s degree from Iowa State University with majors in finance and economics.

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TODD MIDDLETON

Managing Director

Tel: (913) 904-5539 | Mobile: (913) 645-3147
[email protected]

As managing director, Todd has more than 20 years of experience in the banking and financial services industry. Todd possesses a blend of experience in areas that include mergers and acquisitions (M&A), commercial and industrial lending, commercial real estate and construction, credit analysis, inventory management and risk management.

Todd has advised clients in areas that include mergers and acquisitions, strategic planning, financial management, risk management and valuation. He also has specialized knowledge of the agriculture industry and has managed multiple sell-side M&A transactions involving agricultural producers, product suppliers and distributors.

Prior to joining Mariner Capital Advisors, Todd worked in banking and finance for more than two decades. He was a commercial banker and also held senior-level executive and management positions with Fortune 500 companies.

Todd holds a bachelor’s degree in business marketing from Drake University and is involved in several charities, including the March of Dimes and Victory Junction Camp.

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TOM TILLEY

Managing Director

Tel: (913) 904-5540 | Mobile: (913) 238-0295
[email protected]

As managing director, Tom has been directly involved in more than 100 business transactions across the country and has more than 10 years of experience finding appropriate buyers or sellers for his clients. Tom manages all aspects of business transactions including sourcing buyers and sellers, financial modeling and building capital structures, negotiating and closing.

Tom’s experience with mergers and acquisitions spans an array of industries including distribution, manufacturing, consumer products, financial services, health care, information technology and service businesses. He frequently presents to business owners who are clients of local and regional banks, accounting firms and other regional business advisory groups.

With his financial marketplace knowledge, transaction experience and background as a business owner, Tom designs creative transactions and financial structures and then guides his clients through the closing process.

Prior to joining Mariner Capital Advisors, he was managing partner at The DVS Group leading new business development.

Tom attended Michigan State University on a hockey scholarship and went on to play for the St. Louis Blues, Chicago Blackhawks and Tampa Bay Lightning professional hockey organizations. He remains involved in hockey as the President of the Kansas City Youth Hockey Association.

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