Mergers and Acquisitions

"CMJ, LLP Lends Its Expertise To Firms Seeking To Sell Or Acquire Others"
Glens Falls Business Journal
February 2001

By Maury Roberts

"The accounting firm of CMJ, LLP, describes its service as being an advisor to a company's management, providing sound informed advice that contributes to the growth and long-term stability of the business. They are committed to building and maintaining close client relationships by providing services that transcend the usual CPA-client association. CMJ, LLP, offers all the traditional and customary public accounting services, including management advisory, tax services, personal financial planning, and auditing and financial accounting services.

But one of their specialties that transcends the usual relationship between a client and a public accountant is their acting as negotiator in a merger for a business that wants to either sell itself to another corporation or acquire another existing firm to broaden their own operation. They specialize in planning, structuring, and negotiating business transactions.

One of their recent assignments was for Medi-Dyne, Inc., where they served as the company's representative when it was acquired by the Swedish firm of JOMED. Medi-Dyne makes specialized guiding and diagnostic heart catheters and JOMED makes and distributes similar products. Thus, not only did Medi-Dyne stay in Queensbury as a corporate subsidiary, but continues to operate under JOMED with 15 to 20 additional employees and the potential to increase employment by 70 percent.

Paul Curtis, managing partner of CMJ, LLP, said they have worked with Medi-Dyne for more than 15 years through numerous transactions including tax and financial advisory work. He said their firm, CMJ, LLP, has made sort of a niche in acquisitions and mergers.

The firm advises a seller on how to groom the business for sale and in the case of an acquisition, determining the pitfalls in acquiring the particular business. They start by researching and evaluating the target business and identify the strengths and weaknesses, competition and strategic buyers. They develop a negotiation strategy, coordinate advisors and coach the firm through the process from start to finish.

In negotiating the sale of a company, CMJ, LLP does a preliminary evaluation of assets of the entity to be sold or acquired. They then develop the selling strategy or negotiate acquisition terms, assist attorneys and principals with contract issues, assist in closing and accounting, and provide personal financial planning services after closing. Curtis said in a merger a large percentage of the value of the deal can be gained or lost by the tax implications of the transaction.

Among their transactions in which they acted as tax and financial advisors in structuring and negotiating an acquisition was the takeover of the Vermont firm Technical Inspirations by the Saratoga Springs company Interactive Medic Consulting, where they represented IMC. When Rob Slack, President and founder of L.E.D.F.O.O.T. Express, wanted to sell, CMJ, LLP, represented him in the sale to US Delivery Systems, Inc. headquartered in Houston, TX.

In other more recent negotiations, the firm represented Jenkin Holdings, LLC, when they acquired an ownership interest in Haanen, Jenkin and Hutchins. They handled the negotiations for Fitzgerald Realty of Glens Falls when it was acquired by Blake Realty of Albany, and represented William and MaryLou Bingham, then owners of Northeast Broadcast Lab in South Glens Falls, when it was acquired by Harris of Melbourne, FL.

One of their larger negotiations was representing Sandy Hill when it was acquired by Kamyr, Inc., which itself was a subsidiary of Ahlstrom. Curtis, together with Floyd Rourke and Dick Bartlett, handled the deal. Then a year later, Curtis represented Kamyr when it sold Sandy Hill to Tampella.

This involvement in acquisitions and sales is a unique part of the operation of CMJ, LLP,. With mergers and acquisitions becoming an increasingly important aspect of business, this firm's experience and expertise is in greater demand than ever. "