Roman Consulting Group

Success in a competitive business landscape often prompts a critical question of ‘What’s next?’ For business leaders who want to capitalize on their success or bring in a partner who can support taking their company to the next level, this query often leads to exploring a full or partial sale. There are two transaction objectives private company owners prioritize for a merger and acquisition (M&A) transaction — an attractive price and the best steward for their company’s future.

Roman Consulting Group, an M&A consulting firm originally established in 1946, helps them achieve both outcomes through customized, streamlined, and confidential advisory services.

“We act as an intermediary between buyers and sellers of private companies, helping them successfully meet their M&A objectives through a deep understanding of their needs,” says John Roman, President & CEO of Roman Consulting Group.

Its team of M&A specialists, which averages 30 years of experience, facilitates tailored corporate acquisitions, management buyouts, strategic mergers, and minority equity investments for private companies.

These services help organizations in the industrial, manufacturing, consumer, healthcare, and distribution sectors achieve shareholder liquidity, raise capital for growth, create equity opportunities for management, and reap strategic benefits.

Custom Tactics for Business Deals

Mindful that selling a successful business is a pivotal decision needing careful consideration, Roman Consulting customizes approaches to address each client’s specific needs.

The firm works with owners seeking a distinctive combination of transaction benefits. An owner may want partial liquidity, wishing to sell a majority interest while others may prefer a full sale. Some owners may want to continue working after the transaction, some may wish to retire, and others may prefer to stop working full-time but continue as a board member. In many instances, companies have more than one owner, each with different objectives. Roman Consulting can tailor a transaction to address individual goals within a structure that best suits everyone and the company.

In most cases, the firm has a longstanding relationship with a private company before they embark on the transaction journey. With that backdrop, Roman Consulting understands which buyers will be the best cultural and strategic fits for a company, eliminating the need for business owners to interview dozens of suitors which is disruptive to daily business operations and impedes privacy. In line with the seller’s business ethics and strategic vision, the team of consultants introduces them to qualified and motivated buyers in a confidential manner. The group’s process emphasizes a patient and thoughtful approach so that mutual trust between buyer and seller can develop, and their respective values and goals may be explored to ensure strong alignment.

Having partnered with more than 500 nationally respected buyers and investors with specific M&A goals, Roman Consulting continually refines and strengthens its buyer network to provide deep resources for business owners and deliver optimal transactions for them.

“We maintain a robust universe of diverse buyers to offer companies a custom solution that aligns the interests and goals of both parties,” says Roman.
Buyers also have strong preferences for certain transaction formats and dynamics. For instance, a group that gravitates toward buying companies in their entirety with no further owner involvement is not likely to be interested in a 40 percent investment in an organization that continues to be led by its founder. Roman Consulting customizes transactions with attractive terms that meet the diverse objectives of all parties.

One of the most important features of its transactions is that regardless of structure or underlying motivations, the management team receives ownership as part of the deal. Roman Consulting works with management-friendly buyers who ensure senior executives have a meaningful economic stake so they can financially participate as the company becomes more valuable. Management members who already own equity are invited to maintain or increase their interest. In addition, a new equity incentive plan is typically established, offering even more ownership for executives who already have shares and new equity for those who do not.

Staying Ahead Of The Evolving M&A Landscape

Backed by a sound knowledge of the changing market dynamics, Roman Consulting ensures its clients and business owners stay ahead of the latest industry trends and adapt to the shifting economic landscape.

With rising interest rates impacting purchase prices and uncertainty around inflation, lenders are now more cautious. To address this challenge, Roman Consulting works with buyers who are less reliant on debt to fund transactions in addition to those who have a long-term outlook and prefer stronger balance sheets regardless of the economic cycle.

The group also assists clients in exploring seller financing options, a noteworthy trend among business owners. This structure involves the seller accepting part of the purchase price in the form of a promissory note from the buyer, receiving periodic payments until the note is paid off.

Many companies indicate that if they could hire more people, their business would grow at a higher rate given strong industry demand. Some owners are inclined to defer a sale for that reason. Roman Consulting uses creative structuring to address these issues. For instance, a transaction can be designed to provide a very large cash payment at close in addition to the opportunity for additional cash consideration as the business reaches growth milestones.

Apart from acting as intermediaries, Roman Consulting sometimes serves as a principal investor by co-investing in companies along with the majority buyer. This is mostly in situations where the firm can add value for clients after the transaction such as assisting companies with strategic acquisitions. And because this gives the firm opportunities to remain close with companies for years, it equips Roman Consulting with experience in long-term strategic planning.

Where Diligence is The Key to Success

Underpinning Roman Consulting Group’s customized services is its ethos of patience and flexibility. The professionals strive to be great listeners and do not enter conversations with preconceived agendas.

With a deft understanding of how a full acquisition and a minority investment differ, the team takes the time to form a clear perception of the goals that companies are trying to achieve. There are situations when deciding on a transaction structure becomes a tough row to hoe. In these instances, the consultants engage in detailed conversations to help clients consider a variety of options.
The combined power of Roman Consulting’s customized methodologies and the collective knowledge of its workforce has scripted numerous successful transactions for organizations of all sizes.

One of these notable partnerships involved a family-owned, $70 million revenue specialty plastics manufacturer. The founders wanted to diversify their net worth and had no heir to take over the business. Working with the non-active family and management team, Roman Consulting facilitated a transaction that provided liquidity for the owners at an attractive valuation while enabling senior management to receive ownership which they did not have before. The company ultimately gained a supportive partner to work with and thrived after the transaction, reaching unprecedented growth levels that were not realizable before. Roman Consulting also made a co-investment in the company and helped them pursue a number of strategic acquisitions complementary to the business.

Upholding Human Intelligence

Roman Consulting Group’s services are deeply rooted in the belief that automation is not a substitute for human intelligence, creativity, or judgment.

Amid widespread digital transformation, some developments like third-party databases, outsourced providers, or even AI-powered tools are influencing M&A deals. Roman Consulting realizes that although these tools can enhance the efficiency of processes, they can also weaken a firm’s business acumen if overly relied upon.

The group makes room for automation to play a supportive role only when it can strategically strengthen the firm’s core business practices.

While its databases and IT systems have been developed internally, Roman Consulting often incorporates high-quality information from third parties into their proprietary systems exemplifying its efforts to balance rich experience and history while embracing more recent industry practices.

Whether a major corporation contemplating their next move, a family business with dreams of fruitful succession, or an entrepreneur looking to take their company to the next level, Roman Consulting Group helps them accomplish their goals through its personalized consulting services.