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8 Replies Last post: Aug 1, 2008 11:12 PM by whalteva

Buyer seeking acquisitions paid out $400,000 cash finder fee

Jan 27, 2009 12:51 PM

Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008

Client seeking Allergy related company acquisitions (this buyer paid out a $400,000 cash finder fee last quarter of 2008)


One of my clients is seeking acquisitions of companies that manufacture or distribute Allergy related products. This client paid out a $400,000 cash finder fee in last quarter of 2008 to an intermediary that I have advised and work with to build their business. They are very aggressively looking for acquisitions for 2009.


If you know of an allergy related business that meets the following basic criteria (below) and the owner is interested in selling all or part of their business, please let me know. My client (the investment firm) pays my fee and I will pay a referral/finder fee to anyone (who is not being compensated by the business owner/seller) that introduces me to the owner and they successfully close a deal with my client. Contact me for details.


Thanks,
Dennis Lowery
904-223-0355

http://www.Adducent.TV

Companies that have the following basic criteria would be most interesting to us:

  • At least $2 million of EBITDA
  • Located in the United States
  • Management staying on or transitioning out
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
1. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Jan 29, 2009 6:33 PM
in response to: Adducent

Please take a minute to read this. I appreciate it if you will. I understand that many of you visiting my website do not know me. And its hard to make a decision or judgment based just on what you can find online about someone. That is why I created this page of my website (click the following link to go directly to it):


http://www.adducent.tv/about/167


You can also reach it by going to my site http://www.Adducent.TV and clicking on About Us, then clicking on Dennis Lowery. You'll see the link under my name and title.


On that page you will find where I am adding audio files from business conversations I have where I am working with a client or a customer who has bought or is interested in my products and services. One way you can learn more about me is to hear how I work with people on these calls. These are not pre-scripted or rehearsed, they are unedited and have been recorded with the permission of those that are on the call.


Please periodically check that page as I will be adding more calls on different business subjects that you can download or listen to. I hope that you'll be able to pick up some tips and insight from listening to the calls.


Thanks for your time.


Yours truly,
Dennis Lowery
Adducent, Inc.

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Click to view Bridge's profile Mogul Bridge 364 posts since
Jun 3, 2008
2. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Jan 29, 2009 9:05 PM
in response to: Adducent
What's the finder's fee?
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
3. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Jan 29, 2009 9:21 PM
in response to: Bridge
Feel free to contact me directly and I'll discuss with you.
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Click to view Bridge's profile Mogul Bridge 364 posts since
Jun 3, 2008
4. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 3, 2009 2:24 PM
in response to: Adducent
Why not just post the finders fee?
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
5. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 3, 2009 2:50 PM
in response to: Bridge
Because I want to speak to whoever is interested (and asking the question about the finders fee) to determine if they are capable to refer real deals. And if they are capable, to go over the referral/finder fee with them and establish a bilateral non-circumvention agreement and how to submit the deals to me for my buyers.
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Click to view Bridge's profile Mogul Bridge 364 posts since
Jun 3, 2008
6. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 6, 2009 4:10 PM
in response to: Adducent
How many $400,000 finder fees did you pay out to people last year?
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
7. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 6, 2009 5:47 PM
in response to: Bridge
Regarding the $400,000 fee; as I said, the buyer I am working with that is looking for Allergy related companies paid out that as a finder fee. The actual fee was an enhanced Lehman (5,5,4,4,3,3,2,2) on a $25MM transaction (a platform acquisition) which was paid out $400,000 in cash and approx. $200,000 in stock. This post has resulted in two principals/owners contacting me with two companies that might be a good fit for my buyer. But If you have a deal (that meets this buyers initial criteria) to bring forward feel free to contact me directly and I'll be happy to discuss this further with you and if you are not being compensated by the business owners I'll put in place a non-circumvention and fee-sharing agreement with you. Should the business you bring forward, be a good match to my buyer's interest, at the appropriate point (to make you more comfortable and at ease) you can also be on calls with me, the buyer and the business owner you bring forward.
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
8. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 6, 2009 5:57 PM
in response to: Bridge
Bridge,

I meant to add this as well: I know that you are a business broker and would be happy to discuss directly with you, what some of my other buyers are looking for or to see if any of your listings would be of interest to my buyers. The deal that paid out the $400,000 cash buy-side fee was on a broker listing. The brokers fee was actually more than the buy-side.
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Click to view SME_ally's profile Mogul SME_ally 42 posts since
Feb 8, 2009
9. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 9, 2009 10:18 AM
in response to: Adducent
Hello Adducent,

I have worked in finance for about 12 years in Asia and have contacts in the region. Do you have any clients who are looking for overseas aquisitions or investments (specifically China and India)?

There are a number of companies auto manufacturing, OTC pharma, tea, consumer finance (auto) who are looking for alliances/strategic equity. If your clients are interested, I can certainly make the introduction.
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
10. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 9, 2009 12:54 PM
in response to: SME_ally

Hi SME-Ally,


I have a client that owns or has joint ventures in numerous manufacturing companies in China. I'm working with them through their US office but they have an operations office in Beijing and an M&A office in Shanghai. They control companies that produce:

  • plastic injection molded products
  • aluminum die castings
  • electric motors and controls
  • coal mining equipment

They are actively looking for acquisitions to add to their portfolio in the above industries. To be of intitial interest, they need to be at least $20MM in revenue and have EBITDA of at least 10% of revenue (though if you have one with somewhat lower EBITDA, I may be able to run that by them as an add-on acquisition). They are also looking for for stand-alone larger equity investments in platform businesses in other industries with at least $30MM in revenue (preferably larger).


If you have direct contact with business owners/principals with companies that match to the above, feel free to contact me directly (not through this forum please) to discuss what you have and how we can work together on them.


I'm working with two groups (one US based, one in India) interested in acquisitions in India but have not firmed up their acquisition/investment criteria with them yet. I can discuss that further with you as well.

Thanks,

Dennis Lowery
Adducent, Inc.

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Click to view SME_ally's profile Mogul SME_ally 42 posts since
Feb 8, 2009
11. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 12, 2009 1:38 AM
in response to: Adducent
Hello Adducent,

For a company in China to get $20M in sales annual would be a rarity. But there are many who can bring in 10%-15% EBITDA. If you and your client are serious about making acquisitions in China, I have some questions to ask. Perhaps we can discuss this offline. May I have your email? Thank you.
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
12. Re: Buyer seeking acquisitions paid out $400,000 cash finder fee Feb 12, 2009 8:20 AM
in response to: SME_ally

Hello,

My clients are serious about acquisitions that meet their criteria. If you have anything that meets them where you are in direct contact with the business owners, feel free to contact me via my website. You'll find my website address in my profile on this site along with my name and phone number. Also, you might want to add your name and website to your own profile ... that helps people to know a little bit about you.

Thanks.
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Click to view Iwrite's profile Mogul Iwrite 1,101 posts since
Dec 29, 2007
13. Re: Buyer seeking acquisitions paid out $400,000 cash finder Feb 12, 2009 9:07 AM
in response to: Adducent
Adducent,

Thank you for bringing an opportunity like this to the forum. It is great to see something of substance being presented, and the exchange it has spurred. I hope this is successful for all parties involved. We need more collaboration like this.

Thanks.
Iwrite
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Click to view Adducent's profile Mogul Adducent 338 posts since
May 22, 2008
14. Re: Buyer seeking acquisitions paid out $400,000 cash finder Feb 12, 2009 9:33 AM
in response to: Iwrite
Hi Iwrite,

You're welcome, thanks for the feedback and thanks as well, to you for all the contributions you make to the SBOC forums.
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