Pit & Quarry, December 2009

December 2009 C O R P O R A T E C A P A B I L I T I E S 43 FMI Corporation Selling to the Right Buyer at the Right Price Seller representation is a sensitive area It is likely a oncein a lifetime event for the client Selling to the right buyer at the right price at the right time and for the right reason is critical to a successful transaction Here is what is involved Preparation Is this the right time to sell How will potential buyers evaluate the business Is a sale to employees or family a viable option How can you enhance the value of your firm What is the business worth Search Process What information do we want to share Who are the potential buyers Which firms are interested and capable How do we maintain confidentiality Negotiation Is the buyer a good fit What is the best deal structure What at the cultural and strategic issues Transaction Complete How do we get the deal done How do we ensure a successful marriage Buyer representation while less sensitive is just as important its a major event in the growth of any company Likewise buying the right company for the right reasons for the right price at the right time is critical to the success of the acquisition and long term viability and success of the acquiring company The process is similar to selling a company but different questions arise Preparation Does the acquisition make strategic sense Is this the right time to buy What type of company is the right fit Search Process What firms fit these criteria Who is interested in talking Negotiation What are the sellers strengths and weaknesses What is the seller worth What is the best deal structure Transaction Complete How do we complete this deal How do we ensure a successful message Stock and business valuations are required over the life of a business for many reasons Having the correct number based on marketplace realities and one that is fully defensible in a court of law is critical FMI has the industry expertise that no other business appraisers can match Internal ownership transition planning is a stage every successful privately owned firm must deal with Whether the transfer is to family key employees or an ESOP the ownership and management must transition with a minimum of disruption to the business FMI has assisted construction materials firms with the design and implementation of these plans for more than 40 years Our unique industry specialization enables us to have an intimate understanding of the construction materials industry which we use to our clients advantage This has led us to more completed transactions in the industry than any other investment banking firm Investment Banking and Management Consulting F MI has provided investment banking and management consulting and for the worldwide construction industry since 1953 The Investment Banking group provides ownership advisory services to owners of construction materials firms We assist owners with such issues as Seller Representation Buyer Representation Stock and Business Valuation Internal Ownership Transition Planning FMI Corporation 5171 Glenwood Avenue Suite 200 Raleigh NC 27612 Phone 919 787 8400 E Mail whill@ fminet com Web Site www fminet com Hill Reddin