Contact Us
At Provident, our goal is to deliver outstanding investment banking services.
Call us at
(877) 742-9800
Contact Us (877) 742-9800
Questions & Answers
Show/Hide All
- Why does Provident only represent sellers in a transaction?
- Representing only sellers in transactions has several advantages, including an alignment of interests and the avoidance of conflicts. It also allows us to better maximize value—since our only commitment is to the seller our only focus is on reaching their goals.
- How are companies valued in a transaction?
- Valuing a company is complex and involves a variety of considerations. In addition to in-depth financial and operational analysis, Provident also uncovers the numerous intangible factors that will add value during a transaction. Provident also monitors the multiples within the industry, and examines comparable transactions. It’s also worth noting that valuation multiples seen in the public markets are not always accurate indicators when valuing privately-held companies.
- Why would I sell now when I am so profitable and growing rapidly?
- When a company is profitable and growing it is the perfect time to sell. After all, the highest premiums are obtained when you’re still on an upward track, rather than at your peak or declining. It is also worth considering selling a portion of your business (recapitalizing) when the value is high. This can diversify your risk and take care of you and your family for the future.
- What steps can I take now to prepare my company for a smooth liquidity event?
- The first and best step is to utilize Provident’s Strategic Advisory services. It is also important to perform a financial audit, invest in infrastructure and appropriate management, and focus on the core strengths of your service offering. Moves that offer little strategic value other than adding to the bottom line—such as adding business lines that are not complementary to core offerings—will likely only make the company less attractive to potential buyers.
- What are the benefits of working with an investment bank?
- Sellers work with investment banks for a variety of reasons and benefit from the relationship in a variety of ways. With Provident as a partner, the seller is insulated and protected. Because emotion can sometimes hinder these transactions, maintaining a competitive and businesslike environment is one of the most important ways Provident can control the process. Provident works diligently to remove distractions and allows you to keep your focus on running your business. Likewise, utilizing Provident’s vast network of developed relationships saves you time while giving you access to a larger targeted pool of qualified potential buyers than you might have on your own. Buyers are also more likely to take you seriously when you show the commitment to partnering with a firm with an in-depth understanding of the healthcare industry. Provident has worked diligently to develop its reputation within the buyer community as an investment bank who only represents solid, well-run organizations and conducts a very structured and composed transaction process.
- How involved will I need to be?
- Your involvement varies, depending on the Company’s structure and how much help you have with the process. We will have in-depth conversations with you at the beginning of the process, where we will outline our approach, factoring in any time constraints you may have. The stage of the transaction is also key: Early stages and using our Strategic Advisory services consumes little time; middle stages consumes very little time; final stages can be time consuming, lasting anywhere from 1-3 months. Open communication with our clients helps prevent any timing conflicts.
- Is it better to work with a local investment bank?
- With modern technology, geographic location is irrelevant, as evidenced by the fact that Provident has clients throughout North America and its territories. Far more important than geography is finding a bank you’re comfortable with and trust, and has expertise in healthcare.
- What are some questions I should ask when interviewing an investment bank?
- The questions you ask will go a long way toward making sure you have the right bank and get the right outcome from the process. Always check references and be sure deals were completed at the figures and terms originally negotiated in the Letter of Intent. Ask how often transactions do not close, and when they don’t why. Ask: Who will be assigned to my account, and what is their expertise in my sector? Find out what up-front and/or out-of-pocket fees you’ll be responsible for and learn what involvement the bank will have in management meetings, lender presentations, financial diligence and negotiation of closing documents. Also, be sure to ask how many buyers the bank will go to, how they’ll ensure confidentiality, and what your options are if you decide not to sell at all. And last but not least, be sure to get an outline/timeline of the entire process.
- I am interested in raising capital to help grow my business. What are some of the options that I have?
- Provident offers assistance with a variety of capital-raising options, including minority/majority recapitalization with a private equity firm, and raising debt capital or equity financing.
- How would a recapitalization affect my family, employees, current customers and me?
- Provident invests a lot of time in understanding your goals and interests to make sure we find a solution that meets your specific needs. In general, during a recapitalization a company continues its normal operations.
- How can I cash out some of my current investors?
- Similar to raising capital, you can raise debt financing or complete a recapitalization with a private equity firm. Through a recapitalization you can replace current investors with new ones who may have more expertise or fulfill a more critical role. Another option is a form of recapitalization called a management buyout, in which a private equity group backs the management team to buyout non-management shareholders.
- I am concerned that my customers, employees, and competitors will find out that I want to sell my company. How is this managed during a transaction process?
- At Provident, confidentiality is a top priority, and we have a thorough approach to ensuring it. It begins with our non-disclosure agreements, which are signed by Provident and every outside party involved in the process. We also work with you to create a limited, strategically targeted buyer pool. Further, we keep a proprietary data room and hold meetings at locations with which you’re comfortable. Provident is very sensitive to confidentiality and will never reach out to anyone at a client’s company without confirming with the shareholders that the individual is involved in the process.