Acquisitions & Mergers

Equity Investments

The Rathwick Company Business Brokerage

The Rathwick Company has a business brokerage division which specializes in acquisitions of small to middle market businesses. We have successfully represented both buyers and sellers in diverse industries. Although we are generalists, we do have a particular interest in those companies in the specialty food, manufactured food products, and low tech product development and manufacturing industries.

The Rathwick Company markets companies it has under contract to both the local and national markets. In every case, all offerings are presented under strict confidentiality agreements. We understand the seriousness of premature information exposure. We have developed both data bases and marketing platforms to support an effective national reach.

The Rathwick Company also works with interested buyers to assist them in finding a suitable acquisition candidate. We should be able to reduce the time-line for the search and also by prescreening candidates, we further reduce time spent.

Mergers & Acquisitions

The Rathwick Company diligently and successfully represents both buyers and sellers of closely held businesses.

The principals of The Rathwick Company have over 30 years experience in dealing in business acquisitions. During this time, they have amassed a large database of companies in a large number of industries who may be interested in acquiring an ongoing business.

One of the key elements to consider in the sale of a business is its price. We conduct a thorough review of the company including its growth and the strength of the industry. After review of all financial documents of the company, a personal meeting with the owners and/or board will be held to receive our opinion. Every attempt is made to insure the owners will receive the highest price commensurate with attractiveness to a prospective buyer.

We have determined there are three types of buyers for closely held businesses. The first are individuals. This group is comprised usually of local buyers seeking a local business. They are normally interested in smaller businesses, usually selling for less than $2,000,000. The strength of the business in the local economy and its’ ability to continue successfully with new ownership is of prime importance. The buyers of these businesses are interested in the seller assisting in the transition of ownership and may require some seller financing.

The second type of buyer is making a “strategic” acquisition. This group is usually expanding an existing business base. They have opted to accomplish this by acquisition rather than by opening new locations. They are interested in compatibility with their existing operation and management and the ease with which the new business can be assimilated. Their due diligence investigation is quite often more intense. Depending upon the size and financial strength of the acquirer, this group may be buying anywhere in the middle market.

The third class of buyer is a Private Equity Group. This group is interested in existing management, profitability, and scalability. In other words, they are buying a management team, a profit maker, and a company that can be expanded with an infusion of capital and expertise. They tend to have “deep pockets” and pay cash for a business.

Equity Investments

The Rathwick Company represents clients seeking capital for their projects as well as investors interested in funding ventures.

Private equity investments have experienced tremendous growth recently due in part, to instability in the stock market and a current softness in real estate. We specialize in companies seeking “seed capital” for start-up or expansion purposes. This capital facilitates the growth of small business while, at the same time, offering excellent returns to investors.

We also, from time to time, will seek capital for selected trust deed investments on commercial and agricultural properties. These investments are secured by first trust deeds with a conservative loan to value ratio. These investments are usually short term, six to thirty six months.

Investor Primer

The Rathwick Company will meet with you to analyze and present the best investment strategies for you. Below are some key questions that every investor should ask themselves about every investment, regardless of being a seasoned pro or a first time investor:

Increase your investment IQ. Take the time to understand your investment options and the pros and cons of each.
Define your risk comfort level. Typically, the more volatile an investment is, the more profit you can make - but also the more loss you may incur.
Safer investments generally promise a specific, but more limited, return and don't always keep pace with inflation. Deciding how much risk you are comfortable with will help you set and adhere to a smart investment course of action.
Match your investments to your goals. Define your short- and long-term investment goals and identify how much money you'll need to meet those goals. Then let those goals drive your strategy.
Don't be guided by investment gurus. Look for investments that can withstand the tests you require.
Do your own homework. Review available financials and projections carefully.
Diversify. Regardless of your personal risk profile, include a variety of assets that react differently to market conditions. Opt for a mix of investments, so that when one industry sector of the market declines, gains in your other holdings can cushion the blow
Put your investing program on automatic pilot. Treat investing as part of your basic monthly expenses.
Stick to your investment plan. Don't let market swings or the desire to make a sudden big purchase cause you to make impulsive decisions and alter your plan. Switching in and out of investments drives up transaction and tax costs.
Reinvest your profits whenever possible. You'll continue to build your portfolio and further balance out your risk.
Track your performance. Make it a practice to review your goals and investments once a year. In the event your circumstances change, you also might want to revise your strategy.
Check with your financial consultants. Periodically meet with your CPA and other advisers to review your portfolio and allocations in light of changing goals, tax laws, investment performance and various opportunities that might arise.

Source: National Society of CPAs

The investments discussed or offered on this website may or may not be suitable for you. It is your responsibility to consider any investment decision carefully. The information contained on this website should not be construed as advice designed to meet the particular needs of any investor. Past performance is not necessarily indicative of future performance, and does not guarantee future results. The price and/or value of any investment noted directly or indirectly on this website may fluctuate adversely to your interests, and/or those of other investors.

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