Who we are, what we do, how we do it and why it’s important not to confuse us with other Tango Companies.

How do Tango’s Fees compare with other national middle market business intermediaries?

Tango is the only national M&A intermediary that offers the 2% solution. Our success fees are only 2% of total invested capital. Most others charge fees based on a Lehman Formula which start at between 5% and 10% and sometimes higher. By way of comparison the chart below shows fees of two competitors using two very typical pricing models. Tango receives a fee from the buyers who have registered with us and we take part of our fee from them.

What is the relationship between Tango Incorporated and Tango Equity?
Tango is a privately held company that was incorporated in Delaware. Tango Incorporated is a Florida Corporation based in Calgary, Canada. Several years ago, the two companies considered a merger but the transaction never occurred. Tango Equity, Inc. is totally separate from and no longer has any relationship to Tango Incorporated. Tango Equity, Inc. is a profitable and well-capitalized company which has received support from some of the largest financial institutions in the country.

If Tango’s fees are so much lower, am I getting less?
Not at all, we have some of the most experienced M&A people in the industry and have completed 56 middle market transactions with companies whose revenues were from $2 million to over $85 million. With Tango you get the same level of experience and expertise as the larger firms and the personal attention of one of the principals of the company.

How long does the process take?
The typical middle market transaction takes seven months from the time that the engagement with the intermediary is signed until the closing takes place. The largest transaction that our principals were involved with took 52 days from beginning to closing. One of the smallest deals appears to be approaching a closing after more than 18 months.

How many transaction have the principals of Tango actually completed?
Tango’s principals have completed 56 transactions ranging from $2 million to $85 million in revenue.

What type of Buyers can I expect Tango to introduce my company to?
Tango works with over 200 institutional buyers with whom we have a close relationship. In addition there are several hundred more that know of Tango and would be interested in companies in particular industries with specific characteristics. These are mainly private equity funds ranging from $15 million to $16 billion in available capital.

Why do you focus on institutional and financial buyers? I thought that strategic buyers paid more.
Since we focus on the lower end of the middle market most of our financial buyers are seeking companies that may be integrated into their existing portfolio companies. So while they are financial buyers they will also pay multiples equal to those paid by strategic buyers because they already have a platform in the industry. In addition, financial buyers are more easily qualified and typically have a great deal of institutional support to get the transaction done. We have never had a transaction fail to close because an institutional buyer could not arrange financing.

Why did Tango call my Company?
Tango will often contact a company because one or more of our buy-side clients had expressed an interest in your type of business or industry. As a result, we will conduct a search based on SIC (Standard Industrial Classification) or NAIC (North American Industry Classification System) codes to find companies that match certain criteria that are of interest to our buy-side clients.

How do I determine how much my Company is worth?
Ultimately the worth of your Company is determined by the market. However, the intrinsic value of any business is measured by the future cash flow it can produce. Therefore it is important to provide prospective buyers a clear picture of both the current and future growth opportunity of your business through a well crafted Sales Memorandum.

How will Tango market my company?
We first create a blind summary that maintains the anonymity of the seller while providing enough information to solicit interest from our buyers. We often present this summary to approximately 40 of our 250 prospective buyers who have expressed interest in your type of business. From that initial solicitation we might receive 3 to 10 indications of interest. These potential buyers would then sign Confidentiality Agreements to receive a Confidential Information Memorandum (CIM), which would provide them with a more comprehensive description of your business. If the buyer is still interested, they will conduct additional due diligence and often request a meeting with the owners or management team of the company. Typically, the process takes 7 months to complete.
How will you ensure the confidentially of the transaction?
The process itself is conducted with an emphasis on maintaining confidentiality. Many intermediaries post your blind summary on the Internet. While this process may work well for small businesses, such as restaurants, it does not work for larger middle market companies. The buyers may not be able to identify a company based on a short blind summary but your employees probably can, your competitors probably can, your clients may be able to, as well as your creditors, lenders, and landlords. One national intermediary sends blind summaries to 17,000 prospective buyers. There are not 17,000 buyers for any company. The result is that a lot of your time is going to be wasted on unqualified buyers with a high probability that confidentiality will be breached. We differentiate ourselves from other intermediaries and take great care in maintaining confidentiality by investing the time and effort in identifying and qualifying the right buyers. In addition, we use a fully secured document transmissions process by providing buyers access to our secure web site.

So many M&A Intermediaries say they have buyers, when they don’t. Why should I put my trust in Tango?
Tango is a firm believer in the concept of “trust but verify”. As a result, we align our interests with the interests of our clients by structuring our Agreements to provide verification through the following terms:
* Tango’s low fee structure for sellers. This can only be achieved by already having buyers who are willing to share in the cost.
* Tango’s short term exclusive arrangement of only 90 days. This is only possible because we already know where the buyers are and they know us. Selectively targeted distribution of your company information not only allows us to sell your business in a more timely fashion, but also gives you greater assurance of maintaining confidentiality and dealing with qualified buyers.