Buying and Selling a Security Company with Related Due Diligence Processes

• Maximization of Business Value / Exit Strategies / Divestitures:
  • Company Valuations
  • High Value Business Profiles
  • Action Plans and Succession Plans
  • The Right Way to Sell a Business
    
    
• Acquisitions / Mergers:
  • The Right Way to Buy a Business
  • Due Diligence
    
    
• Brokerage and Intermediary Services
• Representing Buyers and Seller

For an owner of a security company, it is inevitable that at some time during ownership he or she will need or want to address:

…Acquisition opportunities or mergers with another security company for accounts and related working assets, in order to grow in a location already being served, or in a new location to fulfill expansion plans.

…Divestiture of part of the company for strategic or financial reasons.

…Sale of the business, whether due to retirement, succession (to family or key employees), or any other scenario including “…it’s just about time to leave.”

…Valuation of the company whether for buyout of a partner, family circumstances that require a valuation, tax purposes, litigation settlement, or for some other purpose.

These opportunities, or needs, can be proactive or reactive, immediate or long-term.

With 30 years of experience on both the seller and buyer sides of transactions of security companies, we at David Heller & Company, LLC understand the professional, personal, and emotional aspects of business transactions. We understand how you feel. We also understand the importance of planning in advance, if possible, in order to achieve the best possible outcome. In controlling the pace of any deal all requirements are met by both parties to a transaction in an accurate and timely fashion. During the process we will coordinate with, and help, counsel and other professionals, such as a CPA, during due diligence, the purchase agreement phase, and the closing.

Sellers:
We strongly encourage a potential seller to conduct advance planning to systematically and proactively take the necessary steps in the selling process. Selling a business is a process, not an act. It weighs the benefits of taking action to increase company value against the time frame within which a sale must be made. This process is controlled by an exit strategy, designed and implemented in conjunction with a specialist with experience in these matters who can ultimately broker a desirable business profile to desirable potential buyers, at the optimum time, and with negotiating skills to get the best terms for the seller.

The processes at David Heller & Company are unique. Typical business brokers can be superficial in approach, lack a deep knowledge of a certain kind of business, lack a broad knowledge of interested buyers for the specific business in a specific location, and are likely to want to make a deal as quickly as possible rather than build more value (if desired by the seller and practical to do) for a sale at a later date. We at David Heller & Company personally know the decision-makers for acquisitions in most of the companies who have interest in acquiring and possess the resources to consummate a deal.

At David Heller & Company we learn about the historical and present business in depth in order to identify each characteristic that affects company value. In effect, we conduct a due diligence as if we were looking to buy the company. We step in potential buyers’ shoes and identify those items that may be of most importance to buyers. We focus on ways to increase company value. In short, we work with the seller to identify, analyze, and prioritize alternatives that are in the best interest of the seller. The seller gets enough input in order to make an informed decision.

Buyers:
David Heller & Company also represents buyers of security companies by conducting broad and focused searches for acquisition candidates. Since we have an understanding of the thought processes that affect a security company owner’s decision making, we are able to break down many of the barriers and defense mechanisms that potential buyers confront.

We are available to conduct the due diligence process for buyers who may have already identified an acquisition candidate, and even settled on some or all of the terms. In addition, David Heller & Company is available to help the acquiring company in its integration of, and combination with, the acquired company. This encompasses helping to maximize synergies, to eliminate duplication and to foster a collaborative team to encourage the integration of overlapping and sometimes conflicting corporate cultures. The importance of this cultural aspect when combining companies and operations is often underestimated, and history has shown that if these differences are not overcome, combining multiple organizations into one is extremely difficult, and most likely counterproductive in the long run.

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