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Bay Business Advisors
is an M&A advisory group focused on defense and government contractors, information technology companies and other selected businesses where we believe our experience and expertise add significant value.
BBA represents both buyers and sellers in the M&A process. However, unlike many consulting firms, we seek long-term relationships with our clients. Because we are very confident in our ability to add value to businesses, our ideal sale process would begin years before our client actually intended to put his business on the market. Along with our advisors, we will work closely with this client to help grow the business organically and through acquisitions, ensuring that the proper financial and operational controls are in place to maximize value to a potential buyer.
Below is a summary of our capabilities. Please contact us so we can discuss whether our services are appropriate for your needs.
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BBA is recognized as one of the leading firms specializing in the sale of small and middle market businesses in the defense, IT and government service sectors. We use a sale process model which has been refined by Bay Business Advisors’ principals through dozens of transactions.
Our sale process focuses on substantial research and preparation prior to going out to market, allowing our clients to maintain strict confidentiality and focus on the potential buyers most likely to maximize business value.
When appropriate, and to get the best results for our clients, we consult with a team of advisors to include attorneys, CPAs and industry professionals whom we have relied on through numerous transactions to provide additional insight into the sale process for our clients.
Our sale process model is organized around three phases: Preparation, Marketing, and Due Diligence/Closing. The summary below outlines the key services which we provide in each phase.
| Strategy and Preparation |
- Review shareholder objectives
- Review sequencing and timing
- Confirmatory due diligence
- Develop positioning strategy
- Prepare confidential review
- Finalize prospective buyers list
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| Marketing |
- Contact prospective buyers
- Distribute information memorandum to interested parties
- Evaluate proposals
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| Due Diligence and Closing |
- Select final candidates
- Negotiate transaction
- Execute contract
- Closing
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Bay Business Advisors is highly experienced in assisting our clients in developing an acquisition strategy and finding target companies which meet our client’s criteria.
Bay Business Advisors’ principals have been involved in some of the major defense and government service transactions which have occurred in the Mid-Atlantic region over the past few years, totaling more than $200 million in transaction value.
Unlike most financial advisors, Bay Business Advisors have acquired defense and government service companies for their own accounts, having developed unmatched knowledge of the strategic considerations and the acquisition process.
The Bay Business Advisors acquisition search process involves:
| Indentification |
- Review company goals and strategy
- Define preliminary acquisition criteria, both business and financial
- Develop universe of target candidates
- Screen and refine universe of potential candidates
- Leverage relationships to identify opportunities
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| Evaluation |
- Make initial contact on a “no names” basis to learn more about the target
- Initial assessment of synergies and strategic fit
- Assess candidate availability
- Schedule meeting with potential target
- Assess competition
- Pricing strategy
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| Negotiation and Closing |
- Synergies (revenue leverage & cost savings)
- Due diligence
- Deal implementation
- Negotiation of definitive agreement
- Financial structuring
- Signing of definitive agreement
- Closing
- Integration
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Unlike most M&A advisors, our goal is to build a professional relationship with our clients well before our client engages in a sale or acquisition process. We help our clients develop their “exit strategy” from the business, and “backward plan” to develop strategies which will help them attain these goals.
Our exit strategy and company positioning services focus on the critical valuation factors outlined below:
Business
Qualitative |
Priority Market Involvement |
Business/Capability
Focus |
Limited "Set-Aside" Revenue |
| Long-Term Customer Relationships |
Prime Contract Positions |
Backlog and Long-Term Contract Horizon |
| Skilled Employee base with High-Level Clearances |
Management Team Qualtiy/Experience |
Deep Technical
Expertise and Proprietary Technology |
No Historical
Mishaps |
Financial
Quantitative |
Track Record of Above Average Growth and Margin Expansion |
Controlled Balance Sheet |
S-Corporation or LLC Ownership Structure |
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