Haverford Capital Advisors

To survive in an environment of increased competition, private companies need to become more efficient. One way to achieve a lower processing cost per service or unit is to increase volume through a merger with another company. Small companies can capitalize upon the economies of scale available in most businesses just as the national players do. For example, combining two small companies with adjacent or overlapping market areas may provide the opportunity to eliminate one production or service site, or to reduce staff in billing, marketing, or administration. The new combined entity may be in a better position to negotiate prices for supplies with vendors.

The professionals at Haverford Capital Advisors understand the forces impacting the decision to merge, and we realize that any merger provides both benefits and detriments. We can provide the confidential and professional representation that is essential to critique the pros and cons of a potential merger, and enable you to meet your objectives in the optimal fashion. Our involvement in the merger process provides private company owners with the benefits of our experience in numerous transactions and will serve to reduce their time investment, allowing them to run their business with minimal distraction. Our confidential merger services include:

Identification and screening of potential merger candidates
Coordination of the confidential information exchange process
Evaluation of potential candidates from a financial perspective
Evaluation of the impact of a particular transaction on each client's business
Financial valuation of each potential merger participant
Determination of appropriate exchange ratios and ownership allocations
Assistance with the development of a strategic plan for the transition and ongoing operations
Management of the due diligence investigation
Assistance in the procurement of the necessary financing
Assistance in the negotiations and transaction structuring
Coordination of the closing process
Development and coordination of a subsequent merger and acquisition program

There are certain to be numerous areas where potential savings or efficiencies may arise following the merger of operations. However, in order for a merger to work, all parties to the merger must agree upon a valuation of each others' companies in order to determine their respective interest in the combined entity. Each owner must potentially contend with dissenting shareholders or partners who oppose the merger, must potentially face the emotional challenge of terminating staff, and must agree with respect to which management team will make the decisions post-transaction. Hence, the merger process is complicated and time consuming. The professionals of Haverford Capital Advisors can successfully orchestrate the merger of your operations.

Haverford Capital Advisors, Inc.
Paoli Executive Green, 41 Leopard Road, Suite 305, Paoli, PA 19301
(610) 407-4020 fax: (610) 407-4028