Mergers and Acquisitions 

DMG represents buyers and sellers of electronic security installation companies, alarm monitoring companies, electronic security manufacturing companies and related businesses.

The DMG/Graybeard’s capital group specializes in raising private equity and long-term debt for security industry firms that are seeking capital for a variety of purposes including recapitalizations; management-led buyouts; industry consolidations; and, internal growth. We've helped dozens of Security installation and manufacturing companies through the maze of research and preparation needed to find and close mutually profitable mergers and acquisitions.

Buy? Sell? Do Nothing at All?
The Anatomy of a Transaction for the Sale of a Company

Excerpted From Security Sales, January 2007. Complete article.

DMG has been involved in hundreds of acquisitions and/or divestitures for over 30 years. In representing sellers of alarm companies, we've been involved in dozens of transactions have learned a few things along the way that can help today's seller better evaluate the opportunities that are there and understand the questions that should be answered before making a decision. The following checklist describes some of the issues alarm company sellers should consider::

1. Examine why you are selling
What will happen if you sell, or if you don't sell? Are you frustrated? Is this an upcycle or a downcycle in your career? How would you feel deep down inside?

2. Is your business really ready to sell?
Look at your company through the eyes of a potential buyer.

3. Put your transaction team together
Your team should include the business “broker,” attorney, financial specialist and the administrator.

4 The Structure
Is it a stock sale or an asset sale (more common and certainly the preferred method by most buyers).

5. Getting a Buyer
The “broker” finds a potential buyer, negotiates a price, and agrees upon the general terms of a Letter of Intent.

6. The Price
The multiple is agreed upon and the LOI is prepared. Mutliples being paid in the alarm industry today may surprise you.

7 The Legal And Due Diligence Process
Once the LOI has been accepted, the lawyer negotiates with the other side the terms and conditions of the transaction while other due digigence is undertaken.

8 The Contract
Contracts are reviewed and agreed upon and a date is set for the closing.

9. The closing
This is the time where money is transferred in to the seller's account, and it is also the time of a potentially big letdown.

10. Let The Fun Begin!
The seller goes off and enjoys the rest of his life!

DO YOUR HOMEWORK. Not just a few phone calls, but a real due diligence on all of the members of your team to make sure that the people that you have asked to be part of your team really are “A players”. Enjoy the process!

Contact DMG at (847) 955-2345 today for information on how Ron Davis and the Graybeards team can help you through the most beneficial way to acquire, sell or merge your security business.

The Graybeards Advisory Board is a division of the Davis Marketing Group
© 2008 Davis Marketing Group