Business Transitions | Mergers & Acquisitions | Consulting
In 2020, Chris Cole, a licensed attorney and commercial real estate broker, became a Principal with E|Enginuity, a multi-national business intermediary firm. E|Enginuity's parent company, The Enginuity Group, has been buying and selling lower middle market firms on its own account for almost four decades. In that time, they realized that there was a lack of standardization of the processes employed in the mergers and acquisitions (M&A) industry.
E|Enginuity was founded to not only standardize the procedures and materials, but to develop all the tools and support services needed to streamline the entire M&A process.
The M&A industry is made up of several players, including private equity firms, investment banking firms, accounting firms, law firms, business brokers, and business intermediary firms. Non-Wall Street type business transitions are frequently handled by business brokers and business intermediaries.
There is a big difference between a business broker and a business intermediary. Generally, a business broker works with "Main Street" type businesses (i.e., small businesses usually under $1,000,000 in value). With few exceptions, business brokers typically are juggling lots of listings and do not manage all the steps in the process. This leaves a lot to the buyer and seller who often have limited oversight of the due diligence and financial and legal documentation required.
Unlike a business broker, a business intermediary tends to work with larger companies from $1,000,000 to $50,000,000 in value. These transactions are inherently more complex, with more moving parts, more shareholders, more complex financial structure, and are more challenging to manage through the due diligence process to a conclusion.
Lorimont brokers are asked periodically if we can sell a business along with the commercial real estate it is occupying. Although a state or national license is generally not required to help someone sell a business, a lot of expertise is required depending on the industry, as well as complex legal documents and intense transaction management. With a legal background in M&A and many hours of training under E|Enginuity guidance, Chris Cole now has the tools required to effectively assist business owners with their business transitions.
While there is no guarantee that we will be able to help you sell your business along with your real estate, Cole's affiliation with E|Enginuity makes it more likely. As a practicing attorney, Chris has handled a number of small-to-lower middle market mergers and acquisitions for his clients, including stock acquisitions, asset purchases, and corporate reorganizations and recapitalizations. Cole and his business partners have also personally been involved in a number of business acquisitions on their own behalf, both stock and asset purchases.