Mergers and Acquisitions – “Agency Transition Management” is the SDG title for our new look at helping agencies transition through sales, mergers and acquisitions. While we can pick up and represent either side of a transaction, we also have unique abilities to serve both sides independently and save everyone time, energy and especially money.
Agency ownership transactions don’t have to cost double! Both sides of the transaction employing their own legal and financial advisors double the cost of the transaction and often exponentially multiplying the time and energy investments, not to mention potential confusion. Both sides are looking for the same outcome, the most fair and equitable transition of ownership. SynerDynamics Group provides a unique and cost effective solution to navigating the historically deep and treacherous waters of agency mergers and acquisitions.
Our unique teams of professionals are experienced in agency transition and mediation to make sure the transaction details meet everyone’s criteria for a success. We have the resources to assist you with a turnkey system including valuation, transaction component determination, and contracting to closure. We also specialize in customizing operational transition plan critical to the success of all agency ownership changes.
Agency Transition Management Q&A –
Q: Can I still use my personal CPA or attorney?
A: We understand many agents use a CPA or attorney who are clients, but do they have
years of experience in agency acquisitions and the nuances that make our industry quite different from traditional business ownership transactions? Part of the reason people use SDG for agency transactions is because we can serve as an independent third party or mediator between the buyer and seller without doubling the legal and accounting fees often associated with 2-sided transactions. We can also provide a second opinion or work with your existing counselors to ensure all of your business and personal planning is in alignment. In most cases we can help you save the cost of 2 sets of professionals to come to a fair and equitable transaction completion.
Q: My agency is very different than most. How is that factored into my deal?
A: While there are many templates for agency ownership transitions, no agency was created equal. Depending on the desires of the buyer and seller, we are able to do a thorough agency operations review to validate the selling price and help plan the transition of ownership and operation successfully.
Q: How are costs allocated for your services?
A: When we serve in the transaction management role our services are typically shared equally by the buyer and the seller. While one side of the other may be the one to initially bring us to the table, we do not work for one side of the other. We work independently to bring both parties the best possible outcome to the transaction always with the goal of being fair and equitable to both parties based on the facts of the transaction. Services for sub-contracted professionals in the accounting and legal arenas are billed at cost through SDG as a part of standard transaction fee.
General Transaction Management Process Steps -
Meeting between potential buyer and seller to determine goals and define steps necessary to accomplish goals. (Ex: Time, extent of operational review, extracurricular transaction components, etc.)
Proposal for Transaction Management process and pricing
Data gathering from potential seller for operational review
Operational analysis and preparation of recommendations for transaction components
Meeting with potential buyer and seller to deliver findings and recommendations
Draft contracting document development and delivery
Transaction closing meeting
See other areas of Organizational Opportunities
Cluster, Consortiums
Valuations
Perpetuation Programs
