What Is A Consortium Sale? Insights, Strategies & Key Takeaways
Release Date: 10/29/2024
Beyond Valuation: Why the Balance Sheet Can Make or Break an M&A Transaction
Bundy Group Insights
In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin explore a critical but often overlooked topic in M&A: how the balance sheet factors into a business sale. While purchase price usually takes center stage, the structure and components of a company’s balance sheet can have a significant impact on deal outcomes. The episode covers key areas such as tangible and intangible assets, real estate ownership, cash-free/debt-free transactions, and net working capital. Using relatable examples and clear explanations, Clint and Stewart provide a framework to help business owners...
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Tariffs, Tensions & the Multipolar World: A Geopolitical Deep Dive with Alex & Eugene Chausovsky
Bundy Group Insights
In this thought-provoking episode of Bundy Group Insights, Alex Chausovsky is joined by geopolitical analyst Eugene Chausovsky, Senior Director at the Newlines Institute. The conversation unpacks the rapidly shifting geopolitical landscape and its direct impact on the global economy, business operations, and international alliances. From the emergence of a multipolar world to the strategic use of tariffs and trade wars, Eugene shares forward-looking insights rooted in rigorous geopolitical forecasting. Listeners will gain a deeper understanding of today’s most critical global...
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Fire Protection M&A: John Corliss Shares His Journey to a Successful Exit
Bundy Group Insights
In this episode of Bundy Group Insights, host Jim Mullens sits down with John Corliss, a seasoned industry expert in fire protection, to discuss his journey of acquiring, growing, and ultimately selling Roanoke Sprinkler. John shares his background, his entrepreneurial approach to business growth, and how he strategically positioned his company for a successful exit. He highlights the importance of building scalable operations, establishing strong financial processes, and timing the market right for a sale. The conversation also covers the role of investment banking in maximizing company value...
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2024 in Review, 2025 in Focus
Bundy Group Insights
Clint Bundy, Managing Director, kicks off season two of Bundy Group Insights by diving into the current economic and mergers & acquisitions (M&A) landscape, offering a thorough analysis of 2024 and expectations for 2025. Joined by Alex Chausovsky, Director of Analytics and Consulting, and Stewart Carlin, Managing Director, the conversation provides expert insights into economic trends and their impact on the M&A market. Alex highlights key economic trends from 2024, focusing on the resilience of the U.S. consumer and evolving labor market dynamics, as well as their impact on...
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Season 1 Conclusion: Gratitude, Highlights, and What's Next for Bundy Group Insights
Bundy Group Insights
As we close out 2024 and Season 1 of Bundy Group Insights, Clint Bundy, Managing Director at Bundy Group, reflects on the year and expresses gratitude to listeners of the Bundy Group Insights podcast. As a boutique investment bank, Bundy Group specializes in assisting business owners and management teams with sales and capital raises, offering insights on economic trends, M&A activity, and value-building strategies. The podcast will return in January 2025 with new episodes, including a 2024 year-in-review, expert economic analysis from Alex Chausovsky, real-world case studies,...
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Strategies for Success in Fire Protection M&A with John Mackey
Bundy Group Insights
In this episode of Bundy Group Insights, Jim Mullens, Managing Director at Bundy Group, interviews John Mackey, founder of The Mackey Group, to discuss the evolving trends, challenges, and opportunities within the fire protection industry. With nearly two decades of experience, Mackey is a trusted authority in fire protection, strategic growth, and advising companies on enhancing operational performance and achieving long-term success. The conversation delves into the ongoing consolidation in the fire, security, and safety sectors, focusing on the influence of private equity firms, strategic...
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Specialization in Investment Banking: Why It Matters for a Business Seller
Bundy Group Insights
In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin, both managing directors of Bundy Group, explore the critical distinctions between generalists and specialists in the investment banking and mergers and acquisitions (M&A) advisory professions. Drawing from their extensive experience, they delve into why specialization in specific industries is key to optimizing outcomes for business owners and executives during transactions. Clint and Stewart share compelling case studies and practical advice for navigating the complexities of the investment banking landscape,...
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Discussion with Bundy Group Director Drew Thomas: A Career Spanning Family Business, Private Equity, and M&A Advisory
Bundy Group Insights
In this episode of Bundy Group Insights, Clint Bundy sits down with Bundy Group Director Drew Thomas, a seasoned professional with extensive M&A experience in the healthcare, technology, and business service sectors. Drew shares his unique career journey—from his start in the family-owned foodservice equipment and supplies business, which he later sold to a strategic buyer, to a leadership role with a healthcare-focused private equity group, and eventually to advising in mergers and acquisitions. Listeners get a glimpse into Drew’s entrepreneurial spirit, fostered by early hands-on...
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What Is A Consortium Sale? Insights, Strategies & Key Takeaways
Bundy Group Insights
In this episode of Bundy Group Insights, Clint Bundy, managing director, is joined by Stewart Carlin, managing director at Bundy Group, to discuss the unique concept of a consortium sale. While the term may not immediately resonate with many, the structure itself can provide incredible opportunities for business owners. The hosts explain how this strategy involves combining two or more companies into a single sale process to maximize valuation for the sellers. Drawing on a successful consortium deal, led by the Bundy Group team, Clint and Stewart delve into the complexities and benefits of...
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The Automation Market: Analysis and Actionable Insights from Industry Expert, Tim Dawson
Bundy Group Insights
In this episode of Bundy Group Insights, Clint Bundy sits down with Tim Dawson, Vice President of Industrial Automation Research at Interact Analysis, to discuss the future of the automation market. With over 25 years of experience in the field, Tim offers a deep dive into the trends driving growth in automation, the role of emerging technologies like AI and machine learning, and how companies can leverage these developments to stay competitive. Tim also shares insights on the growing importance of automation in various sectors and offers advice to business owners looking to scale their...
info_outlineIn this episode of Bundy Group Insights, Clint Bundy, managing director, is joined by Stewart Carlin, managing director at Bundy Group, to discuss the unique concept of a consortium sale. While the term may not immediately resonate with many, the structure itself can provide incredible opportunities for business owners. The hosts explain how this strategy involves combining two or more companies into a single sale process to maximize valuation for the sellers. Drawing on a successful consortium deal, led by the Bundy Group team, Clint and Stewart delve into the complexities and benefits of such an approach.
Key Takeaways:
Consortium Sale Overview: A consortium sale involves presenting multiple companies (usually within the same industry) as a packaged acquisition opportunity for a buyer. For the sellers, this playbook can create enhanced value and options.
Value Enhancement: The goal is to increase seller value in a competitive sale process by highlighting to buyers the combined synergies and growth potential of these companies together. Because a consortium delivers to buyers a larger, more profitable platform, the valuation paid to the consortium owners should be significantly higher versus if they sold their businesses independently.
Private Equity Reversal: The traditional private equity strategy approach is to buy a platform company and then complete add-on acquisitions at lower transaction multiples, which creates an arbitrage for a buyer’s benefit. In a consortium sale, all owners unite to drive for a shared, higher transaction multiple. In short, it is a value arbitrage for the seller’s benefit.
Strategic Alignment is Key: For a consortium sale to succeed, the companies involved must have defensible combination benefits and not be competitive to one another. Additionally, clear communication and complementary goals among all owner participants are crucial for the success of the deal.
Bundy Group’s Role: Acting as the manager of the process, Bundy Group guides the complexities of a consortium sale, ensuring that the preparation, presentation, and execution are seamless for the business owners.
Learn more by visiting https://bundygroup.com.