Allegiance Capital operates very differently from other investment banking firms. We invest considerable dollars into developing buyer research to identify better-quality acquirers for the companies we sell. However, our research findings must go beyond finding a quality acquirer – we endeavor to lay out why the target acquirers are ideally suited to buy the selling company that Allegiance Capital represents.
Here’s an example:
Allegiance Capital took on the sale of a chemical company that was in financial trouble and was being pressured by its bank. Our client owed its bank $14 million in principal and $3 million in interest. The bank valued the business $23-26 million. It was easy for Allegiance Capital to uncover several good acquirers who would offer from $18-23 million for the business. However, through the exhaustive research, we identified a Western European acquirer that was a unique match for the client. Due to the rising value of the Euro, cost of manufacturing certain chemicals was considerably more expensive in Western Europe than in the U.S. Freight rates had tripled, and the European firm had lost its competitive pricing edge because the cost of shipping its chemical products to the U.S. had soared. It needed to produce products in the U.S. By acquiring our client’s company, the European buyer obtained a manufacturing facility that was immediately available. The acquirer maximized this under-utilized facility, and also picked up additional product lines in the transaction. The European acquirer paid $33.5 million for the business.
Somewhere, an acquiring company that will pay premium price for your company is waiting to be discovered. Allegiance Capital will find them for you. When we do, the groundwork is laid for an exceptionally successful transaction where everyone wins.
To learn more about Allegiance Capital Corporation, Private Investment Banks in Dallas, or Business Advisory Firms in Chicago, please visit www.allcapcorp.com
Here’s an example:
Allegiance Capital took on the sale of a chemical company that was in financial trouble and was being pressured by its bank. Our client owed its bank $14 million in principal and $3 million in interest. The bank valued the business $23-26 million. It was easy for Allegiance Capital to uncover several good acquirers who would offer from $18-23 million for the business. However, through the exhaustive research, we identified a Western European acquirer that was a unique match for the client. Due to the rising value of the Euro, cost of manufacturing certain chemicals was considerably more expensive in Western Europe than in the U.S. Freight rates had tripled, and the European firm had lost its competitive pricing edge because the cost of shipping its chemical products to the U.S. had soared. It needed to produce products in the U.S. By acquiring our client’s company, the European buyer obtained a manufacturing facility that was immediately available. The acquirer maximized this under-utilized facility, and also picked up additional product lines in the transaction. The European acquirer paid $33.5 million for the business.
Somewhere, an acquiring company that will pay premium price for your company is waiting to be discovered. Allegiance Capital will find them for you. When we do, the groundwork is laid for an exceptionally successful transaction where everyone wins.
To learn more about Allegiance Capital Corporation, Private Investment Banks in Dallas, or Business Advisory Firms in Chicago, please visit www.allcapcorp.com
