Tuerk & Associates (TA) is a high quality merger/acquisition and business valuation organization serving the middle market. TA is headed by Conrad J. Tuerk who has over 30 years of successful experience in guiding sellers and buyers through transfers of ownership and valuations.
The strategy of TA is to represent a limited number of clients on an exclusive basis at any one time. This is to assure that the transaction receives the individual attention it deserves.
The advantages as a TA client are:
Conrad Tuerk is a generalist and has successfully represented companies in almost every manufacturing, distribution, retail and service sector. In addition to a long career as an intermediary, Tuerk's experience also includes managing several companies and serving as director of numerous public and private companies. He understands what makes a business valuable, how to present that to buyers, and negotiate to maximize price and terms.
Companies we represent have values up to $100 million.
We maintain a database of active strategic and financial group buyers. We thoroughly research both published and other sources. Connie Tuerk is an active member of the Association for Corporate Growth, the largest trade group serving the merger/acquisition market. Participating in Industry activities assists in knowing who buyers are and how to contact them.
We normally divide buyers into two categories - strategic and financial. Strategic buyers are companies that can derive operational benefits from owning the business. This can occur because of potentially higher revenues from a combination, potentially lower expenses by joining together, or a mixture of the two. Because of these perceived synergies, premium prices are often paid by strategic buyers. Financial buyers are more concerned with the return they can earn from the acquisition rather that the business in which the seller operates. Financial buyers are usually more flexible on providing management incentives, including partial ownership. There is a vast pool of money looking for middle market acquisitions among financial buyers.
Which buyers are approached is determined largely by the personal and business objectives of the selling stockholders.
We know that no formula can be applied to determine the value of a typical company. Rather, we look at all relevant historical data and make adjustments where appropriate to show the true asset values and real earning power. We also examine the marketplace in which the company operates and understand the competitive factors. The history and market analysis serve as the foundation for making credible projections for the business which will stand up to buyer scrutiny. We use accepted methodologies such as multiple analysis, discounted cash flow, and comparable sales to arrive at value.
We work on an exclusive basis for our clients and the major portion of our compensation is earned only when a closing occurs. That fee is a percentage of the transaction price and varies depending on the size and difficulty of the project. We also charge a nominal retainer at the outset of an assignment which is credited against the eventual success fee. The amounts of both the success fees and retainers are competitive in the industry.
We have sold companies in as short of time frame as three months and others have taken as long as three years. Most closings take place between six and twelve months from the date we begin our work.
Initially, management will have to be involved providing us the answers and information we need; this normally requires two man days. Once the sales process begins, we attempt to minimize your time. It is extremely important that management focus on the business and be sure sales and profits don't slide while the sale is underway. As the transaction moves toward a closing, more management time is needed. All through the process, we keep management informed of important developments - often a regular weekly or bi-weekly is scheduled at a mutually convenient time.
There are many definitions of the middle market. For our purposes, we define it as companies with values up to $100 million.
We are neither lawyers nor accountants. Our clients should have competent legal, accounting and tax advice when undertaking the sale or purchase of a company. We encourage clients to retain such advisors early in the process. If a seller or acquirer does not have such advisors with actual transaction experience, we are pleased to recommend several firms for consideration.
Depending on the situation, other advisors may be needed for specific areas, such as, environmental, human resources, marketing, etc.
The initial step is to hold a totally confidential, no-obligation assessment meeting. The purpose of this meeting is to determine whether to proceed to the next step. Meetings can be held at your office or ours or some other place of confidentiality you might prefer. In addition to learning about your business, we want to completely understand the personal and business objectives of the prospective clients. We also explain the sale or acquisition process and our role in it. Full disclosure of our fees will also be given.
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