The Private Company Exchange

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Why become a PRIVEX Listed Company?

 

A company approved for listing with PRIVEX can obtain broad global exposure to markets otherwise unavailable to a privately held business. Corporate finance is a highly complex process that requires navigating through a number of critical processes and requirements which include​:

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• Confidentiality and Non-Disclosure Agreements

• Transparency (Financial and Operational)

• Regulatory Requirements

• Operational Analysis (Core Management, Pricing, Marketing, Customer Base & Concentrations, Competition, Market Risks, etc.)

• Financial Analysis (Profit & Loss Statements, Cash Flow Statements, Income Statements, Balance Sheets, Book Values vs. Current Market Values, etc.)

• Valuation Analysis (Current Market Values, Quality of Earnings, Forecasts, etc.)

• Preliminary Due Diligence and Analysis

• Market Review and Research

• Strategic Research

• Transaction Research

• Legal Review

• Creation of Non-Identifying Overviews, Blind Profiles, Teasers, etc.

• Creation of Pitch Books, Offering Memorandums, Confidential Business Reviews, etc.

• Setting Transaction Configurations

• Marketing and Advertising

• Market Presentations

• Calls with Management

• Video Meetings with Management

• On-Site Meetings/Facility Inspections

• Negotiating/Restructuring of Offers

• Financial Review and Analysis

• Due Diligence

• Legal Documentation

• Closing of Transaction

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PRIVEX listed companies can receive assistance from the PRIVEX team to properly navigate through these required processes.

 

While merger & acquisition firms can provide a high level of representation and service to their clients, the reality is many do not. Those firms do a real disservice to the businesses they represent and many end up either selling for a much lower price than they could have received, or they don’t sell at all. For a seller, leaving money on the table is not something they want to do after spending years (often an entire working career) building their business. Another serious problem is a business not finding a buyer when it does go to market. The resulting delay is not only a concern for the owners and their possible retirement plans but often the operation and profitability of the business suffers as well. Going to market a second or third time with other firms often makes the situation worse. Overall it is bad for morale and most potential buyers will discover the business has been on the market before with another firm. They will often assume there is something wrong with the business, or with management, and that it should be avoided as a potential acquisition or investment. They will ask themselves, "Why take that risk?"

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The PRIVEX Difference

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1. PRIVEX is not limited to any single industry as it applies techniques that have proven to be effective across multiple industries. PRIVEX listed companies enjoy a global reach to better facilitate matching with appropriate capital. As not all revenue and not all earnings are created equal the PRIVEX listing criteria is focused on helping good marketable companies with sufficient revenue and level of quality earnings which are owned by those seeking great outcomes. Since PRIVEX is not operating your business, we do not need to be experts in your industry but we do need to be experts in packaging and presenting a PRIVEX listed company properly and to a global base of financial candidates.

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2. The PRIVEX team of deal makers have had very successful careers in private equity; mergers & acquisitions; rollups; acquiring, managing, growing, and selling companies and are able to hone in on the key fundamentals in order to maximize the exposure and ultimate price PRIVEX listed companies ultimately receive. While most merger & acquisition firms take on a large number of deals and operate on the premise that if they take on enough deals...something might close. These firms become known to the sophisticated buyout/investment/financing community as having clients who are not committed to the process but who are instead looking for a savior, a dream buyer, or a white night investor, to whom they will only sell to for a nonsense price that the synergies or future earnings of that company simply cannot support. Deals like that rarely happen. By contrast, PRIVEX assesses each company on its own individual merits to assure their value expectations make sense and can be supported by past, current, or expected future earnings, either as a standalone acquisition, part of a larger rollup strategy, or as a strategic acquisition.

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3. The PRIVEX framework has a structure which can provide large financial incentives to deal makers in the form of a potential financial carrot if they are able to get a higher price for a PRIVEX listed company. If a higher price is not achieved then no incentive is earned, nor should it be. This structure allows PRIVEX to attract additional outside deal makers and motivates everyone involved to work not only harder but also smarter on behalf of the PRIVEX listed company. It incentives all parties to cast a wide net and dig deep to in order to hit out of the ball park. With these mutually aligned goals in place the shareholders of a PRIVEX listed company can obtain a much higher transaction price.

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4. PRIVEX maintains an extensive database with over 112,500 buyers, investors, lenders, and intermediary advisors. The most recent count consisted of 93,873 prospective buyers of middle market companies in the US, Canada, UK, Europe, Japan, Asia, Australia/New Zealand, China, India, Middle East, Central/South America, etc. This database is comprised of private equity funds; family offices; hedge funds; strategic companies; high net worth individuals; angel investors; venture capital firms; commercial lenders, etc. PRIVEX also maintains a database of key professionals and intermediary advisors which includes 7,376 lawyers/solicitors and 4,263 accountants who have their own client base which can match qualified buyers and investors for PRIVEX listed companies; 3,006 intermediaries who have their own database of potential buyers and investors they can approach directly for PRIVEX listed companies; business and management consultants with their own client base, migration agents, etc. We utilize these internal databases to initiate appropriate transactions for PRIVEX listed companies.

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5. PRIVEX listed companies often do not have a published price when on the market. Listing prices can be a double-edged sword. Prospective buyers/investors always have certain assumptions (not all of which are correct) about a particular company. When they attach those assumptions to a listed price they may, even incorrectly, determine the company is not worth that price. When this occurs, they quickly move on to the next opportunity. If the asking price is low, the company will sell quickly but this means the seller has left money on the table. Potentially a lot of money. This is not how a free market should work and a seller should realize the full value for a business, especially after spending many years working hard to grow and preserve that particular business. The best approach usually is to let the market determine the price as the company will have different values to a different buyers and investors. In order to make buyers comfortable that the PRIVEX listed company's price expectations are realistic we will establish a mutually agreed minimum price, or minimum enterprise value, with the PRIVEX listed company. From that threshold a PRIVEX listed company can get to its maximum final price through a well-orchestrated blind bidding war among multiple potential buyers. PRIVEX listed companies can also lock in set transaction configurations and deal structure well ahead of time.

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6. Confidentiality. The principals at PRIVEX have owned and sold several companies (in finance, manufacturing, distribution, service, media, information technology, construction, retail, etc.) and understand the need for confidentiality. This goes beyond just following proper protocol with regards to soliciting prospective buyers or investors with a properly written blind teaser but extends all the way through the entire process regarding staff, suppliers, customers, competitors, and continues even after the transaction is closed. Many owners do not like the common practice of press releases and other forms of public notice being made that their business was sold for large sums being advertised after the close. We respect confidentiality and we respect financial privacy.

 

A PRIVEX Listed Company stands out from the crowd.

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How to become a PRIVEX Listed Company

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First, an authorized representative of the company applying for a listing needs to complete and submit the PRIVEX Company Listing Application Form. The information submitted will be held in confidence and reviewed internally. After this review the nominated contact person may be contacted for any additional information which is needed in order to finalize and approve the listing application. The nominated contact personal will also be provided with additional information as it pertains to their application, any costs, or any further requirements.

 

Based on several factors which are assessed as well as the jurisdiction (country, state, province, region) of where the applicant company is headquartered an agreement may then be sent to the applicant company for signing. This agreement allows a PRIVEX Listing Partner to properly manage the process directly with the applicant company. This PRIVEX Listing Partner will be an associated company, partner, approved registered or licensed affiliate of PRIVEX.

 

Final steps then include drafting and finalizing the required listing documents. Once all documents are finalized and all other requirements are satisfied the company is then formally listed with PRIVEX and the process of being matched globally with appropriate potential buyers, investors, or lenders begins.

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PRIVEX Executive Management Team​

 

The PRIVEX team spans across multiple continents and has decades of experience in buying and selling companies, mergers & acquisitions, private equity, corporate finance, business brokerage, business and management consulting, business startups, industry roll-ups, company management and business ownership. Many PRIVEX team members have served as President, CEO, Managing Director and managers of businesses in a wide variety of industries and in several countries. The team consists of individuals who are military veterans, as well as those with degrees from leading universities, including bachelor's degrees, master's degrees, law degrees, and PhD's.

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The PRIVEX management team has experience in manufacturing, service, distribution, and retail. The management team's experience comes from working in fields including aerospace, agriculture, automotive, B2B and B2C, banking (investment, commercial and retail), chemicals, cleantech, commercial design, construction, education, electrical infrastructure, engineering, entertainment, environmental, fashion, film, finance, food & beverage, fuel distribution networks, healthcare, heavy industrials, homeware/giftware, hospitality, HVAC, import/export, industrial equipment, information technology, logistics, major infrastructure construction, media, medical devices, mining services, oil & gas, plastics, recreational products, real estate, recycling, retail, safety products, steel, software, technology, textiles, timber, trucking, and wholesale distribution.