FAQ

How can Corporate Fuel help me?

The process of selling a company, engaging in an acquisition program or raising capital is complicated and time consuming. Furthermore, presentation and timing can have a substantial impact on value.

Corporate Fuel guides your company through every step of the process, allowing executives to devote more time to operations. By bringing a blend of financial, market and operations perspectives, Corporate Fuel can help define objectives and the best strategy for achieving them. With an extensive list of industry and financial contacts, Corporate Fuel can achieve desired results more quickly and efficiently than a company can on its own.

Corporate Fuel will also be invaluable during the negotiation phase of your transaction; we apply past experience to structuring deals and employ creative solutions to achieve agreement.

What is the process of selling my company and what is Corporate Fuel's role?

While no two deals are exactly alike, every successful transaction - whether a divestiture or an acquisition - has the following general components:

1) Strategy Development. Through a series of meetings with the client, and its own research, Corporate Fuel familiarizes itself with the client's products, technology, operations, key strengths and finances. Corporate Fuel helps the client understand the market, the process and timing. Together, we formulate the client's objectives and an exit strategy.

2) Valuation. Corporate Fuel prepares an assessment of potential market value, to assist in pricing, and to provide guidance during negotiations. Corporate Fuel uses several financial models in its value analysis, and combines them with a view of the market for similar companies. We also make recommendations to increase the value of the transaction.

3) Presentation and Buyer Identification. Corporate Fuel prepares a presentation discussing the client's history, products, management, markets, strategic plan and finances. At the same time, using industry contacts and databases, we construct a list of qualified buyer candidates. After client approval, we start contacting potential buyers. After qualifying them and executing non-disclosure agreements, we send prospective buyers our presentation.

4) Letter of Intent. Corporate Fuel qualifies preliminary offers, directs initial due diligence and assists in the negotiation of the letter of intent . In representing sellers, we help structure the letter of intent toward a firm deal, pending final due diligence.

5) Due Diligence. Normally performed within thirty days of the signing of the letter of intent, the findings help shape the terms of the definitive final agreement. Corporate Fuel coordinates the due diligence, helping to minimize the time required and the disruption to the business.

6) Closing. Corporate Fuel works to close the transaction as soon as possible after the completion of due diligence, and helps to ensure that final documents accurately reflect the initial business agreement. We act as coordinator of all company advisors - including lawyers and accountants - to facilitate closing.

How long does it take to sell my company?

Selling a company usually takes between six and eight months. Some companies take less time, some more. The length of time depends on a number of variables, including how well prepared the company is for a sale, the condition of its financial statements, accounting policies and procedures. Also impacting the timing of a transaction is the state of the industry, the financial markets and the economy in general.

What is my company worth?

A company represents different values to different buyers. Financial buyers tend to focus on cash flow or earnings as the key determinant of value, whereas a strategic or industry buyer may be prepared to pay a premium for a product line or geographic presence, for competitive/market reasons, or share some of the cost savings of the business combination.

Corporate Fuel works to highlight the client's key elements of value, identify prospective buyers that will most value them, and determine interested parties' objectives in order to enhance value for its clients.

What is your fee?

Corporate Fuel invests a substantial amount of time and resources in each assignment. We require a modest retainer and reimbursement of expenses to defray our up-front costs. When the transaction closes, we receive a fee based on the total value of the deal.

What role does your Private Equity fund play?

In a separate function from our Advisory Practice, our fund makes investments of $1-5 million in operating businesses. We provide smaller levels of capital, not readily available from other private equity sources who are interested in much larger investments. As a result, we serve a smaller company with a professional approach otherwise only available to much larger companies.

Why would your fund be a good source of capital?

The professionals associated with Corporate Fuel have decades of experience in managing businesses and providing advisory services to business owners. As a result, we know what it takes to be successful and how to team with a management group to create value and grow a business.

Will Corporate Fuel make minority investments?

In most cases, the Fund's investments will be buyout or control investments. We are willing to consider minority growth investments that have particularly attractive features.

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