Eastman Reynolds Investment Group is a merchant banking company that has been specializing since 1989 in acquiring private companies with sales in the $10 million to $50 million range. We focus on particular areas such as manufacturers, distributors and wholesalers in mature industries that can be upgraded with information age technology. The target companies must be well established, provide positive cash flow from the start, have intrinsic value, and a satisfactory reason for being sold.
Eastman Reynolds identifies companies that can be acquired at a low multiple of earnings or potential earnings. Eastman Reynolds first selects the companies in specific industries that are desirable, then determines if the company is for sale at a favorable price. Conservative proforma financial statements are projected to ascertain the potential of the acquired company.
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Investors:
Our investors are mostly professional managers who are ready to become majority owners and capital investors. Others are individuals who are looking for higher equity returns on their investment while participating in the business on an advisory basis.
The first group is typically former corporate executives willing to commit a substantial portion of net worth and become an operating partner in the acquired company. The second group are well to-do business owners (car dealers, bottlers, building contractors, etc.) with spare capital, who know how to make a business prosper.
This hands-on involvement feels more comfortable than the stock market to many sophisticated investors. Both may participate in an acquisition or work independently.
Eastman Reynolds is exclusively a service to purchasers of business. We do not offer businesses for sale. Instead, we assist an acquirer identify companies which, if acquired, would fulfill their income requirements or would be complementary and compatible to their present business. Such a company may increase a buyer's control of his market or generate sales in new markets related to it.
Although we would be happy to look at a company whose owners would like to sell, we are not business brokers. Rather, we conduct searches for our own investment account. We do not help existing owners in the sale of their companies to third parties. Nevertheless, if we examine such a company and decide to purchase it, there would be no commission charge to the seller.
Sellers of these businesses work with Eastman Reynolds because they recognize the need for additional capital to achieve maximum long term success, or desire to cash out the business' value over a determined time frame. Others want to bring in professional management for growth and simultaneously develop a personal exit strategy with us as new partners. These sellers may exit the business at a predetermined date or continue to maintain day to day control of the business, depending on the objective for selling. They may retain equity ownership or cash out completely. |
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