Dear Mr. Sartin,

Since we are about to complete our optimization engagement, I wanted to share my comments with you regarding the work that Randy Brinkman has done with me and my company, Agricultural Services, Inc.

The project was very important to me for my company’s future success, and the success of our employees and their families.  I also know that if I do well for my employees, this will in turn do well for me.  The work that Randy has done for me has given me direction, confidence, and guidance.  I believe he understood my issues, and addressed my problems, concerns, and needs.  He was always very professional and courteous.  The documentation given to me has been extremely thorough, and Randy has been nice enough to provide me with some great additional reading/management materials.

I believe that what we have gained from this experience is a success for all of us.  I believe this will in turn bring ASI more financial gain, and a great sense of accomplishment.  I think the most important thing that I have learned personally is that I can do it, and now I have the tools.

I am very satisfied with this project, and I would definitely recommend this service to others.  In fact, I already have.  I am thankful for this opportunity.

Sincerely,

Richard F. Norton, President 

(Contact information can be obtained by phoning the The Transition Companies offices at 972-450-3100.)

To: The Transition Companies
From Kitmund Electric

Dear Mr. Sartin,
I am very happy that we held this two week session. I saw the value of what we accomplished. I am hopeful this will translate into more value for my company’s sale price. It went well and I have enjoyed having your analyst as part of our team. He told me your company will be available for further questions and support as we need it. I appreciate that. Therefore, thank you for your work and I am sure the changes made will make a difference. This will at least free me up to not have to do everything I did before.

Sincerely,
Jim Johnson, President

Client and Public Relations
The Transition Companies
Phone 972-450-3100
http://www.transitioncompanies.com

(Contact information can be obtained by phoning the The Transition Companies offices.)

The Transition Companies observed our overloaded Operation Manager and a lack of appropriate accountability to him from his direct reports. Secondarily, The Transition Companies found additional reporting and accounting were needed. Thirdly, a plan to help get us on track for a sale was needed. Lastly, time spent with our new sales manager was needed to set goals and accountability.”

Some of the items address by TTC included modification to our functional and financial organization, responsibility and accountability, goal setting and planning, delegation of authority, labor burden determination, job costing, overhead rate determination and break even analysis, profit and expense controls and cash flow management. TTC also assisted with a revision of our existing job descriptions and creation of those missing and employee training and development regarding the understanding of their job description, what is expected of them and how to properly delegate.

I believe the work The Transition Companies delivered will help position us to grow efficiently and diversify as our business growth over this year and into next. I am satisfied with the work provided and would be happy to be discretely used as a reference to others.

A Instrumentation Manufactures
Sacramento, CA

To: The Transition Companies and Gene Sartin
From: Flow Products International Management, Inc.
Reference : Project 0725

Dear Mr. Sartin,
I have been requested to write a letter to basically review the reason for requesting your help and I am doing so gladly.

Upon meeting you in Houston, I listened intently as I am a newcomer being in business for myself. I had thought I was very successful until I listened to you and your associates. Soon I saw that I needed to do several things to get my company ready to sell knowing that the process might take some time. I knew that I would make a grave mistake if I did not get the help that I needed.

During our initial meeting, it became very clear that I was facing challenges. Your representative and I had a very candid conversation and both agreed that I needed to get deeper into the organization structure and daily operation of my business. The suggestions all made sense, were extremely enlightening and I felt that I was going to get the help I needed. When I say help, I really mean guidance as I was not getting it from those whom I was relying on at that time.

Upon your analyst arrival, the project as explained to me, was to get me moving in the correct direction while maximizing my current abilities and give me the instructions that I needed to move forward in a most positive manner. Issues we covered in detail, some more that others were :

Structuring the functional organization – Very Helpful
Financial organization/reorganization – Desperately needed
Responsibility and accountability – Very Helpful
Employee handbook development – A Work in Process
Goal setting and Planning – Cleared the path to glory
Delegation of Authority – A work in Process
Labor Burden determination – Basic
Setting Policy and Written Procedures – A Work in Process
Job Costing and Pricing – Basic
Determining Overhead Rate – Very Helpful
Breakeven Point – Very Helpful
Employee Incentive Programs – A Work in Process
Develop comprehensive company policies – A Work in Process
Profit and Expense Controls – Very Helpful
Company Safety Policy – Will have ISO certification next month
Cash Flow/Cash Management – Very Helpful
Company Drug & Alcohol Policy – Already doing
Financial Forecasting and Analysis – Extremely Helpful
Job Descriptions – I like Randy’s better than mine
Profit Planning and Engineering – A work in Process
Employee Training & Development – A work in Process
Purchasing Controls – Very Helpful

All of the above became very clear to your analyst once he heard my history. This is when I studied the “80-20” rule and realized I was “99-1”. After the first week I started to really take a look at what had happened and then started to understand what needed to happen. Every day it became clearer and clearer once I understood that I should not take my challenges out on myself. The summary pages and the documents given to me were easy to read and easy to understand. Any question that I had was answered directly or with an analogy which is the way I understand the best.

Having stated all of this, I believe that staying on the plan laid out to me, my company will operate much more efficiently as well as more profitable. I have the guidelines to refer to, and with time will be able to teach my subordinates as well. This will make my life much easier.

Gene, as we discussed on the phone, I was in shock with regard to the investment I was about to make; however after time spent with your analyst, I would recommend your services to anyone who gave me the opportunity. Further, I would recommend your company to whoever asks. Please feel free to use this letter of recommendation with any potential client you may have. I do not think it is the size of the business or the type of business, we all have our own goals and dreams. Most companies I am sure just need a little tweaking and proper planning to get to where they want to go quicker and with fewer problems.

Again, anything I can do to assist you in achieving your goals, please contact me.

Very truly yours.
Ronald E. Veatch, President

(Contact information can be obtained by phoning the The Transition Companies offices.)

Posted by The Transition Companies on July 12, 2009 under The Transition Companies Buying a Biz

Closing the Deal from The Transition Companies 

Finally, once the target company agrees to the tender offer and regulatory requirements are met, the merger deal will be executed by means of some transaction. In a merger in which one company buys another, the acquiring company will pay for the target company’s shares with cash, stock or both.

A cash-for-stock transaction is fairly straightforward: target company shareholders receive a cash payment for each share purchased. This transaction is treated as a taxable sale of the shares of the target company.

If the transaction is made with stock instead of cash, then it’s not taxable. There is simply an exchange of share certificates. The desire to steer clear of the tax man explains why so many M&A deals are carried out as stock-for-stock transactions.

When a company is purchased with stock, new shares from the acquiring company’s stock are issued directly to the target company’s shareholders, or the new shares are sent to a broker who manages them for target company shareholders. The shareholders of the target company are only taxed when they sell their new shares.

When the deal is closed, investors usually receive a new stock in their portfolios - the acquiring company’s expanded stock. Sometimes investors will get new stock identifying a new corporate entity that is created by the M&A deal.

The Transition Companies Buying a Biz

The Transition Companies M&A Process for Selling a Company or Selling a Business 

Some owner’s say selling my company or selling my business is an in-depth process. What’s needed is an experienced M&A Advisor and a Successful Sales Strategy. 

Developing a Successful Sales Strategy 

M&A is complex and the stakes are high. There is no learning curve for selling a privately-held company. Most owners get only one opportunity in a life time to make the best sale. The Transition Companies M&A Process is a systematic yet dynamic and highly effective process that has sold hundreds of companies of all sizes and industries for the maximum sale proceeds to the best successor. The Transition Companies M&A Process takes advantage of our internal proprietary buyer databases; depending on the industry includes 2000 to 5000, buyers both domestic and international. After we have analyzed both tangible and intangible factors of our clients business, a final qualified buyer list is typically 250 to 500 buyers. Buyers will pay premium prices to acquire companies that not only will provide a return on their investment but still enable them to achieve their strategic acquisition objectives.

The Transition Companies has a tried and proven custom process for “making a market” for a privately-held business.

What Do Buyers Look For When Buying a Company or Buying a Business?

 Business valuations….you need to know to make an educated decision…get a business appraisal.

You never get a second chance to make a first impression. The Transition Companies has the proven expertise to evaluate, value, analyze and package a company from a buyer’s perspective. Based on our many years’ experience, we know how to position both tangible and intangible assets to show a company’s true potential and to maximize its value among buyers. The Transition Companies is so experienced and successful at packaging and presenting a company that we typically ask a buyer for an offer before they have even physically seen the business. 

Timing Matters… Perhaps the Most 

The best advice we can share with business owner clients is to sell when the market is ready; not when you are ready. The Transition Companies M&A Process statistically takes 6 to 18 months to sell a company. Markets, sectors, internal company dynamics change. All those changes have a significant effect on value. Some factors can be controlled such as many of the internal dynamics of the Company others cannot such as the overall M&A Market. Bottom line; sell when the time is opportune or risk losing a significant return. Consultation with an M&A professional is mission critical.

http://www.newswiretoday.com/news/43933/ – Dallas, TX, United States, 12/11/2008. The Transition Companies, LLC (“TTC”) is pleased to announce the sale of Windo-Shade Distributors Inc. (“Windo-Shade”) of Galveston, Texas to Innovus Investment Holdings LLC (“Innovus”). TTC acted as Windo-Shade’s exclusive M&A advisor for this transaction.??Michael Ryan, Executive Director of Transactions at TTC said “we opened the market using our proprietary buyer list consisting of 318 prospective buyers. These resources resulted in numerous interested parties finishing with several “finalists”. The shareholders of Windo-Shade were able to choose the transaction with the buyer that best met their personal objectives”.

“The middle markets are still vibrant for profitable, well managed companies” said Gene Sartin, CEO of The Transition Companies.

The Transition Companies, headquartered in Dallas, Texas is a leading Mergers and Acquisition (”M&A”) firm specializing in confidentially opening the market to maximize the value realized by the owners when selling their privately-held companies. TTC also provides consulting services for companies that want to increase earnings now or increase market value for a future sale. The Transition Companies (transitioncompanies.com), originally founded in 1988, has 4 offices nationwide and a dedicated professional team of 105 Associates. TTC’s team of professionals has provided valuation, consulting and executed M&A sale transactions for hundreds of companies across all industry sectors nationwide. The sale of an entrepreneur’s business is frequently the largest and most important financial event of his or her life – for most, it is an opportunity that will be presented only once. The successful sale of a business requires a carefully planned and methodically structured process in which each step is done right – the first time – when seeking to maximize the financial reward. These goals were accomplished in this transaction.

Client and Public Relations

The Transition Companies

Phone 800-704-6201

http://www.transitioncompanies.com