Frequently asked questions

Has MMC signed on any businesses?

We are talking with $100M of companies, and this is the time to get involved with MMC to see a 5 to 7 share value increase with less dilution

Are interested parties able to access the relevant information on who is involved?

Of course!

As ABC Co. understands the variability in such deals, will MMC explain the rationale for such variability?

We are not sure where this idea comes from, but we are looking at metal distribution, service centers, and metal product manufacturing, such as machine shops, structural shops, fabrication shops, and production shops. The rationale is that the industry is heavily fragmented, resulting in fewer profits; it will also present synergies; the higher-margin sectors will help stabilize those with less.

Does such a rationale accommodate the perceived differences between the first entities signed and those of the latter? In other words, is there any enticement to being one of the first businesses to sign on? (i.e. contributing a larger portion to the MMC revenue goal for longer than entities signed near the end).

The enticement is that you would see a significant share value increase when we go public, plus our size as we will continue to grow through M&A and partnerships.

What parameters are set for the completion of such acquisitions? (i.e. how many entities, regional representation, industry representation, deadline for acquisitions, etc.). When would ABC Co. be able to assume the acquisition process be considered complete? (i.e. reference is made to "2 years or less to achieve revenue goals - $500M). What happens if this goal is not achieved?

We don't see how this won't happen with our network and help from you. We are also of the mindset that if you set broad goals, big things get done. From a liberal perspective, the process would be complete in 3 years; this includes the DD period, closing, incubator period, and one-year lockup after going public. Revenue targets define our goals, and I can provide a timeline for whoever needs it

Can ABC Co. expect some assurance they will not be competing with others in the same industry, or are they included in any acquisition critique process?

The idea here is to compete for less by being part of a larger group and seeing the benefit of collaboration, the network, and synergies. The only thing I can assure you if you need some assurance is that we won't acquire any other company in your local area, but again think collaboration; wouldn't we all rather be partners than competitors?

How are so many diverse acquisitions to be measured on performance?

There are only three sectors that we are looking at, as I mentioned above. The vertical acquisition/investment sectors in our overview document all have these companies in them; that is one thing with metals; it is everywhere, which gives us diversity and stability.

Recognizing that financial metrics will be a crucial factor, will these be clearly stated, and ABC Co. assumes all remedies would be fairly borne by the governing board of directors, as apportioned by controlling interest?

Financial metrics are always a factor as they measure any organization's health, but bringing together many companies together increases the health of each unit/subsidiary, economies of scale. We also want to help with this, and that's what Craig and Jonathan are good at through their Transphorm consulting firm. As for decisions getting made, it would have to be unanimous for anything serious to happen.

Is the implementation of an overall ERP system to be part of the technology, and if so, what details are there regarding the implementation platform, timelines and costs?

This would be a cost incurred to MMC and wouldn't be something we do right away. We want to learn about the business and people before we start implementing anything if it is needed; the sure way to mess up our company and yours is to come in with big egos and think we know more than you and jam some stuff down your throat because we don't know everyone business as well as they do. But I will say that all companies are the same, just the people aren't; however, there is plenty of proof to say that people are the same everywhere also; the point is we don't want to mess with the business because the owners and founders know it better than us. What does help with is improving the financials, access to markets, access to opportunities, access to a vast network, access to capital for more M&A.

Will there be expectations for ABC Co. to implement other select enterprise platforms? (i.e. CRM, Accounting, Business Development, Project Management). If so, is there a list of MMC's preferred platforms?

Microsoft products are easy to use and scalable, but not a factor at this point.

What details are available to describe the competitive advantages to be expected through the use of such technology? (i.e. ABC Co.'s inventory management is critical to its success and expects there would be pricing and/or sourcing advantages without compromise).

Yes it is, and we wouldn't want to do anything to affect it; we only want to help if the ABC Co. team approves of it.

Are MMC financials available and to be regularly available?

If you're part of the group, of course, you will be abreast of what's going on; our goal is to always be open, transparent, and honest with everyone.

Shall each or select acquisition entities have any position on the MMC board of directors?

We will be selective about the individuals, but the option is there.

Does MMC envision controlling or complete interest in each entity?

We have options here; it depends on the situation and the shareholder's goals; sometimes someone wants out of business that way we would control it, in the case like ABC Co. they want to stay on board we would take a minority position, but in all cases, there would need to be a management team or someone who has been groomed to operate that business. However, we do have access to an extensive network if we need someone to jump and operate.

What are "Wealth Generating Events"?

Growing through M&A and going public will increase shares value

What "bolt-on" acquisitions or diversification ioi acquisitions does MMC have in the works?

We have a train car manufacturer in the works, two fabrication shops in Georgia, an offer put in on metal service centers in Texas, a steel drywall stud manufacturer, a structural steel company in Toronto, steel distribution in Quebec, fabrication companies in Arizona and Hamilton, and we're making new contacts every day.

What parameters will MMC apply for assessing the viability of "bolt-on" acquisitions, and can ABC Co. be assured a voice in such?

Of course, we welcome everyone's voice.

Some of ABC Co's raw materials are essentially commodities (i.e. pipe, flat bar, wide flange), while some are processed specific (i.e. heads and shells, spec'd valves). Does MMC believe they can drive savings on most of these specialized purchases, even if other MMC acquisitions do not purchase them?

We believe so because we will have more pull as a larger group because where we go makes a difference to our suppliers.