It is important we recognize those who sponsor TECHdotMN because their financial reinvestment advances Minnesota’s technology industry.
When and why did Franklin Partners begin?
We were founded in 1994 to provide sell-side merger and acquisition services to owners of companies. Over time, we have grown with partners who have considerable investment banking experience working in firms such as Piper Jaffray, Smith Barney, and Wessels, Arnold & Henderson.
How do you work with technology companies?
Specifically, we represent private companies seeking to sell their business. We do this by defining the appropriate buyer universe, managing the preparation of marketing materials for use with prospective buyers, contacting and managing communications with these prospective buyers, promoting the company and soliciting competitive proposals from prospective buyers, and negotiating terms and conditions in conjunction with company legal, accounting and tax advisors to consummate the sale.
What are a few examples of technology companies clients?
A few examples would be our sell-side representations of the largest North American integrator of Microsoft Dynamics to a large publicly traded multinational company, a SaaS model business that provided import/export trade data to its primary competitor, and a niche software company with an innovative fuel-tax tracking SaaS product to a large diversified industrial company expanding into logistics. In these cases, our clients were all Minnesota-based.
How do clients benefit from engaging with Franklin Partners?
We believe that, in the sale of a business, the best value and structure is attained through a competitive process soliciting multiple prospective buyers who bid for the business. To get to this “auction” stage, a business has to be presented to buyers so as to convey its full future potential. We find that business owners have focused on sales and growth and margins but not presenting the company in this way. Preparing the materials to market a business is a very large part of our work.
When do you typically begin working with a client who wants to sell?
That is a great question. We feel strongly that all parties benefit from getting to know each other well in advance of a sale. When this happens, our client gets to know us, we have time to know the business better, and we can make recommendations well in advance that can benefit the seller. We often spend a year or two getting to know our clients before we are engaged to execute a sale – we see it as good investment in time for all parties.
What is the most common mistakes made by a seller?
In the same vein, entrepreneurs don’t begin planning for a sale soon enough. Although there are times when a seller needs to react quickly to an unexpected suitor, we are strong advocates of preparation on all fronts: financial, legal and tax.
Where can you be reached?
Michael Kessler: firstname.lastname@example.org / 612.685.8936
Chip Myers: email@example.com / 612.436.0891