Our Beyond the Expected content series showcases how Truist Securities uses its industry expertise and deep knowledge to help clients navigate complex situations and achieve their goals. 

In this piece, we highlight how Truist Securities helps clients find the right partner to achieve their M&A goals.

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Visual Description: Truist logo appears in the center of the screen in front of a purple background, then transitions to Raul Gutierrez seated on a purple chair in an interview room speaking directly to the camera.

 

On-screen text: Raul Gutierrez. Head of Mergers & Acquisitions. Truist Securities.

 

Raul Gutierrez: Finding the right M&A partner is definitely more an art than a science. If you are interested in selling a piece or the entirety of a business today, there's a lot at stake. There's not only the financial prospects of the business that you have to worry about, but certainly all the employees that you're responsible for.

 

Visual Description: Raul is standing in front of a window in the Truist office with a view of other high-rise office buildings and taking a phone call on his cellphone. The video cuts to another Truist employee on a landline phone in the Truist office.

 

Raul Gutierrez: Finding the right partner often means looking beyond the balance sheet and the financial implications of an offer that a buyer may provide.

 

Visual Description: The video continues to cut between Raul taking a call on his cellphone in front of the windows in the Truist office and the other employee on the landline.

 

Raul Gutierrez: It forces you to consider the impact of a host of other considerations.

 

Visual Description: Raul Gutierrez is seated in the interview room speaking directly to the camera.

 

Raul Gutierrez: For example, are you looking to just maximize value? Do you plan on remaining

involved in the company after the transaction is finally done? Is there a competitor you would not like to sell to? All of these are important considerations that need to be answered.

 

Visual Description: Two people walk through the Truist office and turn to the right past a sign of the Truist title and logo.

 

Raul Gutierrez: Once we understand what the client's objectives are, we can begin to identify who are the best potential buyers that can do two things.

 

Visual Description: Raul is sitting in the interview room speaking directly to the camera.

 

Raul Gutierrez: One, help meet the objectives of our clients, but two, willing to pay a premium for the business.

 

Visual Description: Raul and two Truist employees are seated around a round table in a conference room in the Truist office. Raul is leading the conversation while the other two employees listen and take notes.

 

Raul Gutierrez: The best buyers are those for which your company or a division fills a specific need or gap in their business that would allow them to extract incremental value…

 

Visual Description: Raul is seated in the interview room speaking directly to the camera.

 

Raul Gutierrez: …and therefore, drive a higher offer and premium for your company.

 

Visual Description: Video cuts back to the conference room where Raul continues to lead the conversation while the other two Truist employees take notes.

 

Raul Gutierrez: Our knowledge of industry trends and the industry landscape really allows us to help identify the best companies that would fit as buyers for your business.

 

Visual Description: Close-up on Raul in the interview room speaking to the camera.

 

Raul Gutierrez: After that, it's about understanding what else they bring to the table beyond just the financial implications of their offer.

 

Visual Description: Video returns to the meeting room with a close-up of one of the Truist teammates as she smiles and nods along to the conversation. The video cuts between Raul talking to the two teammates and their reactions as they listen.

 

Raul Gutierrez: Are they willing to invest more capital behind the brand? How are they thinking about the long-term vision for integration? How are they approaching governance going forward?

 

Visual Description: The two Truist employees are having a conversation as they walk down a hallway, passing the Truist title and logo on the wall behind them.

 

Raul Gutierrez: At Truist Securities, we start by truly understanding the client's objectives…

 

Visual Description: Video cuts back to a close-up on Raul seated in the interview room speaking to the camera.

 

Raul Gutierrez: …to ensure that we're able to find the best partner for their company's long-term success.

 

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Visual Description: Truist Securities title and logo appear on screen in front of a purple background.

 

On-screen text: Truist Securities. Copyright 2024 Truist Financial Corporation. Truist and Truist Securities are service marks of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, financial risk management, and treasury management and payment services are offered by Truist Bank. Deposit products are offered by Truist Bank, Member FDIC.

Whether you’re looking to grow your business through an acquisition or considering divesting part or all of your firm, there’s a lot at stake when you pursue a mergers and acquisitions (M&A) transaction. Not every buyer-seller combination will maximize value or combine to become a strong company moving forward.

“Finding the right M&A partner is definitely more of an art than a science,” says Raul Gutierrez, head of M&A at Truist Securities. His team works with clients to sift through potential partners to find the one that provides the best outcome. “Our knowledge of industry trends and the industry landscape really allows us to identify the companies that are best potential fits for your business.”

What matters to you as a seller?

Gutierrez says the first step in the process is for his team to develop a deep understanding of your goals for the deal. For example, if you’re on the sell side of the potential transaction, Gutierrez says answers to these questions are critical:

  • Do you expect to have a role in the company after the transaction?
  • Do you have a desire to protect existing employees?
  • Are there brand elements you don’t want to see the new ownership change?
  • Are there firms you would not sell to under any circumstances?

“When you're getting ready to enter a transaction, it often means looking beyond the balance sheet,” Gutierrez notes. “Frequently, you'll have multiple objectives, but once we have answers to these critical questions, it will allow us to determine how we go about marketing your business, who we reach out to, and what type of structure to consider.”

With a firm grasp of your goals—and how you prioritize them—your Truist Securities team can begin the process of finding the partner that will bring the most value.

What makes a good buy-side partner?

While one goal is always to maximize profits, sometimes the right acquisition partner for a seller isn’t who will pay the most money, Gutierrez says. While Truist Securities’ diligence process helps ensure you receive the maximum proceeds from the transaction, it also ensures other priorities.

It may be equally important to find a buyer willing to invest additional capital into the combined business after the purchase to sustain the legacy of the company or to support your continued involvement and success after the deal. There’s also a cultural component to finding the right transaction partner. Participants in a merger must have similar ways of approaching business, or else there’s opportunity for conflict that can negate what seems to make sense from a financial perspective.

Identifying firms that would make good partners also requires an in-depth knowledge of your industry, which is why Truist Securities relies on its industry specialists to go beyond the balance sheet. Truist Securities identifies which firms would benefit most from the transaction, as they’re likely to pay a higher premium.

Certain companies may have gaps or needs that your division or company can fill for them. Our knowledge of industry trends and the industry landscape allows us to identify the companies that are best potential fits for your business.
- Raul Gutierrez
Head of Mergers & Acquisitions, Truist Securities

Looking for the best result

There’s a lot at stake in any M&A transaction. Both sides are looking to achieve objectives and create a better situation going forward. And because of the importance of finding the right partner, it’s critical to engage someone who can help you navigate the waters of potential buyers or sellers.

“Ultimately, the success of a buyer-seller combination doesn’t only come down to the added value of two companies coming together,” Gutierrez says. “It also comes in terms of integrating two very distinct cultures into a cohesive whole that will benefit all the constituents going forward.”

Considering a purchase or divestiture?

Truist Securities can help with next steps that may help your business grow or add capital.

Learn more

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