FAQs

Generational Group uses a structured M&A process that guides business owners from exit planning and valuation through market preparation, buyer outreach, negotiations, due diligence, and closing.

The process includes developing an exit strategy, completing pre-market advisory and valuation work, preparing the Confidential Information Memorandum (CIM) and other transaction materials, developing a targeted buyer list, confidentially marketing the business to potential buyers, executing non-disclosure agreements (NDAs), distributing information to qualified buyers, managing indications of interest and competitive bidding, negotiating letters of intent (LOIs), completing due diligence, supporting negotiations of the definitive purchase agreement, and closing the transaction.

A typical Generational Group M&A transaction takes approximately 6 to 12 months from the moment the deal is launched. The timeline varies based on the company’s market readiness, industry, financial performance, buyer interest, market conditions, and transaction complexity.

Once a buyer has been selected and a letter of intent (LOI) has been negotiated, the due diligence phase commonly takes approximately 45 to 90 days. Following due diligence, negotiations of the definitive purchase agreement and closing typically take an additional 30 to 60 days.

For business owners who are not yet ready to sell, Generational recommends beginning exit planning one to three years in advance. This provides additional time to strengthen the business, address potential issues, and build value before entering the market. Owners seeking significant growth in revenue and profitability may also engage Generational Growth Advisors before going to market.

Generational Group has a proprietary database of more than 42,000 registered buyers, including strategic acquirers, private equity firms, family offices, international buyers, and other financial buyers.

Rather than simply listing your business for sale, Generational develops a targeted buyer strategy based on your company’s strengths, intangible assets, industry, and transaction objectives.

Generational also owns DealForce, a leading middle-market digital M&A platform serving the investment community. With more than 42,000 registered global buyers, DealForce enables efficient buyer searches and matching, helping to accelerate the transaction process.

In addition, Generational has a strategic partnership with Nihon M&A Center, Japan’s largest M&A firm, providing access to an additional 25,000 registered buyers. This relationship significantly expands Generational’s reach to potential buyers in Japan and other international markets.

Yes. Generational Group helps business owners raise growth capital through partial sales or recapitalizations, allowing owners to retain a meaningful equity stake in their companies.

These transactions commonly involve private equity firms, family offices, strategic investors, and other institutional buyers. The capital can be used to fund acquisitions, expansion, new locations, technology, or other growth initiatives.

A partial sale can also provide owners with immediate liquidity, reduced financial risk, and continued equity ownership, preserving the opportunity for a second transaction as the business grows.

Generational Group is compensated through an engagement fee when you hire the firm and a success fee when your business is sold. Unlike many middle-market investment banks, Generational credits the engagement fee against the success fee when a transaction closes, except in the rare case where prohibited by state regulations.

The engagement fee supports the significant work required to prepare your business for market and execute a professional M&A process. It also demonstrates commitment to the process, something serious buyers look for. This is a one-time fee, and Generational does not bill clients for additional expenses such as travel, lodging, meals, administrative costs, marketing materials, research, progress payments, or breakup fees.

The success fee is based on the final selling price of the business and follows an industry-standard percentage schedule that varies with the size of the transaction. The success fee schedule is confirmed with each client before entering into an agreement. Generational does not receive its success fee until the client receives the transaction proceeds at closing.

Again, Generational credits the engagement fee against the success fee when a transaction closes, except in the rare case where prohibited by state regulations.

Generational Group’s engagement fee covers the extensive pre-market preparation required to position a business for sale. This includes a comprehensive business valuation, financial analysis and recasting of financial statements, the Roadmap to Enhanced Value (REV), pre-market due diligence analysis, buyer data room preparation, and development of the Confidential Information Memorandum (CIM). It also includes a personal wealth review by Generational Wealth Advisors.

This preparation is an important part of Generational’s M&A process. Buyers invest significant time and resources in evaluating an acquisition. Having complete financial information, organized documentation, a robust data room, and due diligence materials prepared in advance builds buyer confidence and helps keep transactions moving toward closing.

This comprehensive preparation “muscle” has been a key contributor to Generational’s success in completing more than 1,900 transactions.