Sixforces serves owners of mid-sized businesses that have enterprise values of $5M to $150M. We represent entrepreneurs, investment groups, and corporations in the purchase or sale of businesses. We customize each transaction to address our client’s unique situation and to exploit market opportunities.
We are skilled in all facets of M&A Advisory Services, including financial analysis, marketing, deal structuring and negotiations. We also provide ongoing strategic advice to ensure that owners and managers are best placed to grow their businesses and to prepare for eventual sale. Our experience, sector expertise, and judgment give our clients a genuine competitive advantage.
The sectors in which we operate include:
Sixforces specializes in finding capital sources for companies with with $2M to $25M of EBITDA. We help business owners comprehensively evaluate a wide range of financing alternatives including various forms of debt and equity financing. We help business owners package their company’s story and potential for the most relevant and active capital sources.
We can help businesses finance with:
Our broadcast client was a startup, disrupting the cable industry with high-definition content, but starved for capital. The client turned to Sixforces to kick-start a moribund capital raise and to advise the company on the financing. Our client avoided an impending cash crunch, closed the financing, and subsequently built a great success story, capitalizing on a burgeoning HDTV environment. Producing and aggregating great high-definition video content, the company added millions of subscribers and was eventually sold for $85 million.
Leveraged Buyouts: A leveraged buyout (LBO) occurs when the buyer of a company takes on a significant amount of debt as part of the purchase. The buyer will use assets from the purchased company as collateral and will pay off the debt using future cash flow. In a leveraged buyout, the buyer takes a controlling interest in the company.
This lets the buyer set new goals for the business and build the management team to achieve them. The new owner controls the company’s board of directors. In smaller acquisitions, buyers will often leverage their personal assets and cash flow, pledging them to secure the acquisition debt. Such personal pledges are rare in larger acquisitions.. Money for these acquisitions can be raised from multiple sources including banks, development banks, private equity firms, trust companies, and pension funds.
Our targeted acquisition was a very profitable, well-run, but low-profile plastics manufacturing business. We successfully negotiated a high seven-figure purchase price at fair-market cash flow values, then closed a highly-leveraged purchase of the target within 90 days.
A combination of secured revolver loan, secured fixed-asset loan, subordinated debt and vendor take-back, combined with a highly efficient tax plan, enabled us to complete the acquisition with only 3% equity in the capital structure. The company continued to operate successfully and returned 10 times the original investment.
Leveraged Buyouts: A leveraged buyout (LBO) occurs when the buyer of a company takes on a significant amount of debt as part of the purchase. The buyer will use assets from the purchased company as collateral and will pay off the debt using future cash flow. In a leveraged buyout, the buyer takes a controlling interest in the company.
This lets the buyer set new goals for the business and build the management team to achieve them. The new owner controls the company’s board of directors. In smaller acquisitions, buyers will often leverage their personal assets and cash flow, pledging them to secure the acquisitions debt. Such personal pledges are rare in larger acquisitions.. Money for these acquisitions can be raised from multiple sources including banks, development banks, private equity firms, trust companies, and pension funds.
Our targeted acquisition was a very profitable, well-run, but low-profile plastics manufacturing business. We successfully negotiated a high seven-figure purchase price at fair-market cash flow values, then closed a highly-leveraged purchase of the target within 90 days.
A combination of secured revolver loan, secured fixed-asset loan, subordinated debt and vendor take-back, combined with a highly efficient tax plan, enabled us to complete the acquisition with only 3% equity in the capital structure. The company continued to operate successfully and return 10X investments to the principals.
We draw on our industry and transactional experience to provide various types of strategic advisory services that include:
We are a group of experienced entrepreneurs, business operators, financiers and professionals that help business owners get the results they need.
At Sixforces, business owners can reply upon our experience and contacts to help grow their businesses to the next level. Services include:
