The first question that comes to mind for many people is, “What distinguishes a Mergers and Acquisitions (M&A) practitioner from a general business broker?” The answer, for the most part, may be attributed to the accumulated level of education, training and experience of the individual.

Generally speaking, when one speaks in terms of engaging an M&A specialist, one often is considering the acquisition or sale of a company possessing at least some of the following characteristics:

  • Gross Revenues in $ Millions.
  • Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA) in excess of $1,000,000.
  • Historical track-record of significant Revenues and Earnings which can stand-up to the rigors of financial “due-diligence.”

An M&A Specialist is trained to understand the more complex issues of deal-making, including:

  • The application of appropriate capitalization rates (multiples of earnings) to determine Fair Market Value of an on-going business.
  • The benefit/harm of the “allocation” of the Purchase Price between the various assets of the business.
  • The risks/benefits of “asset” structured sales as opposed to “stock” sales.
  • The consequences of the representations and warranties made by the parties that survive the transaction.

Additionally, an M&A Specialist understands the “ebb and flow” of the deal. He or she can guide a buyer or seller through the tangle of documentation, due diligence and negotiations that usually accompany the sale or acquisition of a substantial business.

Integra has brokers who possess the necessary criteria mentioned above to skillfully handle a “larger” or more “complex” transaction.