We help business owners and executives in
a variety of ways:
Business Advice
Many business owners and executives are very knowledgeable about their industry,
products, and services. However, they often need help in resolving marketing, financial,
accounting, and tax issues. Our clients include individuals, start-ups, early-stage
and more established companies, as well as troubled businesses. Advice is given to
clients regarding a myriad of financial, business, tax, and investment issues. We
identify and improve many areas within their companies that may be of concern, so
that the business can increase in value.
We advise our clients as to:
- A specific transaction or deal under consideration
- A company's business strategy
- Ways to increase a company's cash flow,
revenue, profitability, and value
- How to more effectively market a product
or service
- Ways to motivate and compensate executives
and other employees
Purchase or Sale of a Business
Owning a closely-held business is one way to build personal wealth. Alternatively,
selling a business is a way to change an illiquid asset into cash. The purchase or
sale of a business is often a major transaction for the parties involved. We advise
our clients as both buyers and sellers of businesses and help them to avoid the numerous
pitfalls that could otherwise cause problems or obstacles. The following services
are provided, but not limited to:
- Positioning a company for sale
- Advising on the price and payment terms
of the proposed transaction
- Performing the due diligence that should
be done before the deal is completed
- Suggesting alternatives to a purchase or
sale
- Identifying potential buyers or target
companies
- Investigating either the seller or the
buyer
- Negotiating and structuring the transaction
- Identifying critical issues, and suggesting
creative ways to resolve them
Investing in Private Companies
History has shown that outstanding rates of return can be realized by investing
in private companies. Investors in private companies sometimes have more control
or input into the company's management and strategy. One way private company owners
can become wealthy is by either selling their company or “going public.” However,
investments in private companies also involve substantial risk. Investing in a private
company is similar to investing in publicly traded securities, but there are several
significant differences. First, there is usually little or no liquidity with securities
issued by a private company. When an investor purchases publicly traded securities
and realizes a mistake was made, or that they need to sell, they can easily do so.
In contrast, however, the investor in the private company often cannot sell their
investment. This means that investors should be much more cautious before investing
in a private company. They can reduce the level of their risk by having the appropriate
legal documents and contracts signed. Second, the lack of liquidity also decreases
the value of a private company's securities; investors will pay more up front to
get liquidity. Third, the lack of liquidity forces investors to be more “long-term”
investors, and focus more closely on the company's operations. To make money and
earn a return, investors must sell their investment. An “exit strategy” is important.
We can either represent the company or the potential investor (we cannot represent
both in the same transaction due to the conflict of interest). We act as an advisor
for both the experienced and the novice investor. We help our clients consider issues
and factors that they would not have considered on their own. It is rare that a consultant
has the experience and background to consider the areas of tax, legal, financial
and practical business implications all at once. In every case, GWM will provide
guidance, and discuss options that are available. In short, we help our clients reduce
risk, and increase the odds of making money.
This is done by advising the client on:
- A potential investment in a specific company
- Investigating the private company under
consideration, and its key personnel
- Whether they should add to, or dispose
of their investment
- Negotiating, structuring, and reviewing
the documentation for the investment
- The investor's exit strategy
Transferring or Exiting a Business
Many business owners want to transfer their business to family members, one or
more key employees, to an employee stock ownership plan (ESOP), or to a charity.
GWM can provide the following services:
- Identifying strategic options available
to the business owner
- Explaining the advantages and disadvantages
of each option
- Succession planning
- Evaluating the tax, financial, and practical
implications
- Contract or agreement formation
