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Tariff Mitigation Strategies: Acting Decisively Amid Uncertainty

Navigating Tariffs

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The Shockwave of Impact

President Trump’s push to rebalance global trade rules has unleashed more than policy shifts—it has set off a storm of disruption across international commerce, global supply chains, and financial markets.

This disruption isn’t just about tariffs. It’s about unpredictability.

Rather than moving through a clear legislative path, the administration is deploying tariffs by executive order—orders that can change overnight. And they have. In the span of days, entire countries are added or removed, product lists rewritten, and timelines reset. What was true yesterday may be obsolete today.

During Trump’s first term, the focus was sharp: China. That gave companies time to pivot, adapt, and relocate production to places like Vietnam, Taiwan, Mexico, or Eastern Europe. But this time? The tariffs are broader, harsher, and far less predictable. Businesses are flying blind—and the stakes are higher.

The Paralysis of Uncertainty

Many companies are hitting pause, waiting for clarity. But this moment is no time for hesitation. Inaction now isn’t neutral—it’s a risk.

While competitors hesitate, forward-thinking leaders will move decisively.

What You Can — and Should — Do Now

Short-Term Tactical Moves

Renegotiate with Suppliers: Use tariffs as leverage. Push for price concessions or demand suppliers absorb some of the added costs. Every percentage point counts.
Explore New Suppliers: Long-term relationships matter—but so does cost. Sourcing from lower-tariff regions may reveal aggressive new players offering better all-in pricing.
Rethink Product Configurations: Trim or separate tariff-heavy components—like batteries or power supplies—from the main product. Sell them as accessories to lower your exposure.
Pass Through Costs (Carefully): If necessary, raise prices. Customers understand what’s happening. But communicate value and transparency to preserve trust.

Long-Term Strategic Levers

Diversify the Supply Chain: Don’t scramble with every shift. Restructuring a supply chain requires careful planning and many months to fully transition. Due to the lack of predictability and frequent changes, trying to move production around the world as a mitigation strategy will not likely be effective. Build flexibility into your model. Dual sourcing from more than a single region can act as a shock absorber when policy jolts hit.
Onshore Select Manufacturing: Yes, it may cost more. But onshoring brings control, stability, and speed to market—along with proximity to customers and engineering teams.
Double Down on AI and Automation: This is more than a cost play. Well-placed automation can improve workflow productivity, quality and reliability — turning disruption into a launchpad for competitive advantage.

Why Now Matters

Tariffs won’t wait. Policy may shift again tomorrow. The question is: will your business be ready—or be reacting?

Leaders who act now will find themselves ahead of the curve—and their competitors.

New Port Partners has significant experience developing and implementing custom plans to help clients mitigate the impact of tariffs for their specific business. Reach out to us today at info@newportpartnersgroup.com to learn how we can help you.

The Right Way to Right Size: 3 Mistakes to Avoid

Right sizing a company is one of the most challenging steps a leadership team can face. Often triggered by financial strain or strategic misalignment, the process can be disruptive—but when executed correctly, it can be a powerful reset. Unfortunately, many companies make predictable and costly mistakes along the way. At New Port Partners, we’ve seen it all—and we help our clients avoid these three common missteps:

1. Reducing Too Little, Too Late
The most frequent error is not removing enough cost. Many companies rely solely on finance teams to determine a reduction target. This often results in shallow staffing reductions that fail to resolve structural inefficiencies—forcing the company to revisit layoffs, often multiple times in a few quarters. This impacts employee morale, creates fear and uncertainty amongst the remaining employee, and suboptimal cost reduction New Port Partners provides a realistic, outside-in assessment of what needs to change so businesses get it right the first time.

2. Eliminating the Wrong Functions
Another mistake is allocating cuts evenly across departments without regard to strategy, benchmarks, or business needs, for example disrupting critical R&D and impacting product roadmaps or customer facing resources impacting revenue This also invites internal confusion, employee resentment, and even loss of confidence in company leadership. We use sector-specific benchmarks to guide right-sizing decisions by function—ensuring changes are fair, defendable, and aligned with your long-term goals.

3. Ignoring Perception and Timing
How you handle right-sizing matters just as much as the cost reductions itself. The remaining employees must believe that the process was unbiased and the impacted workforce are treated fairly and shown respect. The unaffected employees must be reassured that they are valued. Proper timing also plays a key role—there’s no perfect moment to downsize, but some windows are far better than others. Plan carefully.

A Better Path Forward
Right-sizing is hard—but avoidable mistakes make it harder. At New Port Partners, we guide companies through restructuring with data, empathy, and strategy—so you emerge leaner, stronger, and poised for success.

Right-Sizing_ 3 Mistakes to Avoid

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Case Study

Overview of Major Phases in a Company Exit: The Seller’s Perspective
Phase 1: Preparation

Company Exit_ The Preparation Phase

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Exiting a business is a profound event in a company's lifecycle. Whether through a sale, merger, or other transition, a successful exit demands careful planning, strategic decision-making, and diligent execution. For sellers, the process follows several well-defined phases: preparation, marketing the business, buyer selection, due diligence, negotiation, and closing. The preparation phase is a critical step in the overall process, setting the foundation for a smooth and lucrative exit.

The Preparation Phase: Setting the Stage for Success

Preparation is critical to a successful exit. This phase involves clarifying objectives, conducting an internal assessment, enlisting professional advisors, determining valuation, and assembling the necessary documentation. Sellers must invest significant time and effort during this stage to ensure their business is attractive to potential buyers and commands the best possible price.

1. Defining Objectives

Defining the seller's objectives is the first step in preparing for an exit. A clear understanding of these goals will guide every subsequent decision and strategy. Key questions to address include:

Financial Goals: What is the desired economic outcome from the sale? Are there minimum thresholds that must be met?
Timeline: When does the seller want or need to exit? Is there flexibility in timing?
Legacy and Continuity: Do you have preferences regarding the company’s future direction or the retention of employees and customers?
Post-Exit Involvement: Does the seller wish to remain involved with the company in some capacity post-transaction, such as through a consulting role or equity stake?

By articulating these objectives early, sellers can better align their preparation efforts with the desired outcome.

2. Conducting an Internal Assessment

A thorough company assessment is essential to understand its strengths, weaknesses, opportunities, and threats (SWOT). This evaluation provides a clear picture of the business’s current state and helps identify areas for improvement before bringing it to market.

Strengths: Identify competitive advantages, such as proprietary technology, strong brand reputation, loyal customer base, or robust financial performance.
Weaknesses: Pinpoint internal challenges that may reduce buyer confidence, such as outdated processes, key-person dependencies, or financial inefficiencies.
Opportunities: Highlight potential growth areas, such as untapped markets, new product lines, or strategic partnerships.
Threats: Acknowledge external risks, such as competitive pressures, regulatory changes, or economic downturns, and develop strategies to mitigate them.

The insights gained from a SWOT analysis can guide improvements, making the business more attractive and defensible during valuation and negotiation.

3. Identifying Professional Advisors

Navigating a company exit is complex, requiring expertise in various domains. Sellers should assemble a team of experienced advisors to guide them through the process that should include the following:

Advisory services: Provide guidance and leadership to implement the improvements needed to maximize valuation identified in the SWOT assessment.
Mergers and Acquisitions (M&A) Advisors: Help market the business, identify potential buyers, and negotiate terms.
Financial Advisors: Assist with valuation, tax planning, and investment strategies for the proceeds of the sale.
Legal Counsel: Ensure compliance with legal and regulatory requirements, draft and review contracts, and manage intellectual property concerns.
Accountants: Provide accurate financial statements and assist with due diligence preparation.

Engaging the right advisors early will save time, reduce risk, and maximize the value of the exit.

4. Determining Valuation

Establishing a realistic and defensible valuation is critical. Overvaluing the company can deter potential buyers, while undervaluing it may leave money on the table. Sellers should work with financial advisors or valuation experts to determine the company’s worth based on:

Historical and Projected Financial Performance: Analyze revenue growth, profitability, cash flow, and other key financial metrics.
Market Comparables: Assess the valuations of similar companies that have recently been sold in the industry.
Asset-Based Valuation: Consider the value of tangible and intangible assets, such as equipment, real estate, intellectual property, and goodwill.
Strategic Value: Highlight unique aspects of the business that make it particularly valuable to specific buyers, such as market position or synergies.

A detailed and transparent valuation report helps set a fair asking price and builds buyer confidence.

5. Preparing Documentation

Comprehensive and accurate documentation is essential to presenting the business professionally and expediting the due diligence process. Key documents to prepare include:

Financial Statements: Audited financials for the past 3-5 years, including income statements, balance sheets, and cash flow statements.
Operational Data: Detailed information on the company’s operations, such as production processes, supply chain, and key performance indicators.
Legal and Regulatory Compliance: Records of business licenses, intellectual property registrations, contracts, and any outstanding legal matters.
Marketing Materials: A well-crafted pitch deck or CIM highlighting the company’s value proposition, market position, and growth opportunities.

The CIM, in particular, serves as the primary marketing document for potential buyers, summarizing the company’s key attributes and setting the tone for further discussions.

The Benefits of a Robust Preparation Phase

Investing in the preparation phase yields significant benefits:

Attracting Quality Buyers: A well-prepared business with clear documentation and defensible valuation attracts serious buyers, increasing the likelihood of competitive offers.
Streamlining Due Diligence: Comprehensive preparation reduces delays and surprises during the buyer’s due diligence process.
Maximizing Value: Addressing weaknesses and highlighting strengths before going to market enhances the company's perceived value.
Mitigating Risk: Identifying and resolving potential issues upfront minimizes the risk of deal failure or post-sale disputes.

Conclusion

New Port Partners has substantial expertise in the preparation phase component of the M&A process. It is a significant and foundational step in a successful company exit. By defining objectives, conducting a thorough internal assessment, engaging professional advisors, determining a realistic valuation, and preparing comprehensive documentation, sellers can position their business for a smooth and profitable transition. While preparation requires significant time and effort, the payoff in terms of increased buyer confidence and maximized value makes it an essential investment in the overall exit strategy.

The preparation phase is the first, critical step in a company’s journey to execute a successful exit. Future articles in this series will focus on marketing and target identification, initial engagement with buyers, the negotiation that ultimately leads to beneficial LOI (Letter of Intent), due diligence, working the final negotiation and signed agreement, closing the transaction, and driving the post-sale transition.

M&A Process Phase 2: Marketing & Target Identification

M&A Phase 2_ Marketing & Target Identification

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The mergers and acquisitions (M&A) process is a complex, multi-stage endeavor, with each phase playing a critical role in maximizing valuation and securing an optimal deal structure. Among these, the Marketing & Target Identification phase serves as a foundational pillar, shaping buyer perception, optimizing competitive tension, and ultimately driving transaction success. This phase entails a structured approach encompassing the creation of sophisticated marketing materials, the development of a Confidential Information Memorandum (CIM), teaser document preparation, rigorous buyer identification, and strategic outreach execution.

Enhancing Buyer Engagement Through Financially-Driven Marketing Materials

Effective marketing materials act as a strategic sales instrument designed to present the target company in a compelling yet data-driven manner. These materials must strike a balance between high-level strategic appeal and granular financial disclosures to ensure credibility and transparency. Key elements include:

Executive Summary: A succinct, investment-oriented overview of the business, focusing on financial strength, competitive advantages, and market position.
Operational Highlights: Insights into revenue streams, cost structures, technology, product differentiation, go-to-market model, scalability potential, and operational efficiencies.
Financial Overview: Historical financial statements, revenue and EBITDA trends, key performance indicators (KPIs), and capital expenditure profiles.
Investor Narrative: A clear articulation of growth drivers, industry tailwinds, and potential synergies for acquirers.

Visual presentation plays a crucial role—leveraging data visualization, pro forma financial projections, and comparative benchmarking can enhance engagement and improve buyer comprehension.

The Role of the Confidential Information Memorandum (CIM) in Investor Due Diligence

The CIM serves as the cornerstone document for serious investor evaluation, providing a deep dive into financials, strategic positioning, and risk assessment. A well-structured CIM includes:

Company Overview: History, ownership structure, core business segments, and operational footprint.
Market & Competitive Landscape: Industry dynamics, growth potential, competitive benchmarking and differentiation, SWOT analysis, TAM, SAM, and barriers to entry.
Financial Performance & Projections: EBITDA breakdown, working capital analysis, cash flow, debt structure, and projected financial models with sensitivity analysis.
Investment Merits & Risk Factors: A nuanced articulation of key value drivers, potential risks, and mitigation strategies.
Management & Organizational Structure: Leadership team accomplishments, retention strategies, and succession planning considerations.

Striking the right balance between comprehensive disclosure and information sensitivity is imperative. Overloading buyers with excessive details may dilute focus, whereas withholding critical insights may erode trust and interest.

Teaser Documents: The Initial Hook for Buyer Engagement

Before disclosing the full CIM, a one-page teaser document is circulated to gauge preliminary interest while preserving confidentiality. A well-crafted teaser should:

Maintain anonymity while revealing high-level revenue, EBITDA, and market positioning data.
Clearly define the investment thesis and strategic fit.
Include a structured call to action, prompting the execution of a Non-Disclosure Agreement (NDA) for further access to deal materials.

Precision in Buyer Targeting: Strategic vs. Financial Buyers

Identifying and segmenting potential acquirers are pivotal in optimizing deal competition and valuation. Buyers typically fall into two primary categories:

Strategic Buyers: Industry incumbents or adjacent market players seeking synergies, market expansion, or vertical integration opportunities.
Financial Buyers: Private equity firms, hedge funds, and family offices focused on financial performance, IRR potential, and value creation through operational improvements or financial engineering.

Leveraging M&A databases, transaction comps, sector-specific research, and advisory networks enables sellers to curate a buyer list that aligns with their valuation expectations and transaction objectives.

Executing a Structured and Discreet Outreach Strategy

Buyer outreach must be meticulously orchestrated to maintain confidentiality, generate competitive tension, and maximize engagement. This involves:

Leveraging Investment Banks & M&A Advisors: Access to curated buyer networks and institutional investor relationships.
Direct Strategic Outreach: Engaging through internal teams or executive-level introductions to key decision-makers.
Digital Deal Platforms: Secure virtual data rooms (VDRs) for controlled access to deal documents and streamlined communication.

A structured outreach process includes:

1. Initial Buyer Contact: Teaser document distribution and NDA execution.

2. Information Disclosure: Controlled access to the CIM and preliminary Q&A sessions.

3. Follow-Ups & Screening: Evaluating buyer intent, financial capacity, and acquisition rationale.

4. Management Presentations & Site Visits: Deep-dive engagement for shortlisted buyers.

Maximizing Deal Value Through Effective Marketing & Target Identification

A well-executed Marketing & Target Identification phase optimizes transaction value by fostering competitive dynamics, ensuring alignment with seller objectives, and accelerating deal timelines. Key benefits include:

Enhanced Valuation Multiples: Attracting multiple interested buyers can drive bidding competition, resulting in premium valuations.
Strategic Buyer Alignment: Ensuring potential acquirers have the operational and financial capacity to close the deal.
Process Efficiency: Streamlining outreach and buyer screening reduces time-to-close and mitigates deal fatigue.

New Port Partners’ Approach to M&A Success

At New Port Partners, we provide the seller with an unbiased and realistic assessment and expectation, recognizing that the Marketing & Target Identification phase is not just a preparatory step but a strategic inflection point that sets the tone for the entire transaction. We work in alignment with key stakeholders, including strategic and financial sponsors, board members, and the executive team. By meticulously crafting high-quality marketing materials, structuring a compelling CIM, targeting the right buyer pool, and executing a discreet yet aggressive outreach strategy, we position our clients for optimal deal outcomes.

An optimized timeline in execution at this critical stage translates to superior valuations, smoother negotiations, and higher deal certainty—ultimately driving shareholder value and transaction success.

M&A Process Phase 3: Initial Engagement with Buyers - The Valuation Defining Moment

M&A Initial Buyer Engagement_ Defining Valuation

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In any merger or acquisition, many steps, documents, and negotiations shape the final outcome of the deal. However, one phase plays an outsized role in determining how buyers perceive value and how sellers maximize their outcome: initial engagement with buyers.

This phase in the M&A process is when potential acquirers are first introduced to the opportunity. It’s when the seller begins to shape the narrative, drive buyer excitement, and set valuation expectations. Done well, this phase establishes the competitive tone of the process and anchors the buyer’s perception at a premium. Done poorly, it can leave money on the table before the real negotiations begin.

What Happens During Initial Engagement?

The initial engagement phase begins once the seller and their advisor (usually an investment bank or M&A advisor) finalize their internal preparations. These typically include a clean set of financials, a well-structured Confidential Information Memorandum (CIM), a dynamic management presentation, and clearly defined growth narratives. With these tools in place, the advisor begins formal outreach to a curated list of potential acquirers.

The first touchpoint is usually the teaser—an anonymized, high-level snapshot of the business designed to spark interest. If buyers express curiosity, they sign a non-disclosure agreement (NDA), after which the advisor sends the CIM. Then come introductory calls between the management team and the buyer’s deal team. These initial interactions often include early Q&A, a walk-through of the company’s story, and a chance for buyers to probe strategy, operations, and future growth

At this stage, formal bids have not yet been made, but buyers are beginning to form internal views of valuation, risk, and fit.

Why This Phase is So Crucial for Valuation

Valuation in M&A is not a static number derived purely from spreadsheets. Perception, competitive dynamics, and confidence in future value heavily shape it. And that perception is formed earlier than most sellers realize—often during this very phase.

1. First Impressions Anchor Value

Buyers don’t wait until due diligence to start modeling value. They begin pricing the deal in their heads as soon as they see the teaser or hear the initial pitch. Their internal deal teams build financial models and discuss scenarios based on limited information. What they believe at this moment—about the company’s growth trajectory, team, and market opportunity—will strongly influence their initial bid and how flexible they’ll be in future negotiations.

Buyers will assume they are bidding on a premium opportunity if the seller delivers a compelling, consistent narrative with substantial financial support. If the presentation is disjointed or data is unclear, buyers may become cautious, and their models will reflect lower growth and more risk—driving down valuation.

2. Competitive Tension Begins Here

One of the seller’s key levers in M&A is competitive tension—the sense that multiple buyers are actively engaged and that time is limited. This tension doesn’t suddenly appear when bids are due. It begins during the initial engagement. A responsive, well-prepared, and confident seller signals buyers that they’re running a tight process. The result: buyers move faster and more aggressively, knowing they may lose out if they hesitate.

Conversely, the competitive drive weakens if the process feels unstructured or buyers sense they’re the only ones at the table. They take their time. They discount more aggressively. They negotiate harder. Sellers lose momentum—and value.

3. This is the One Chance to Tell the Story Right

There is no second introduction. The first conversation a buyer has with the seller—the tone, clarity, and credibility of that discussion—becomes the foundation for all future interactions. Buyers will repeat what they heard to their investment committees, internal champions, and the operating teams, who will ultimately evaluate the fit.

That means the seller’s leadership must be tightly aligned. The CEO and CFO must speak the same language. The vision and the numbers must match. Every claim about the future must have a basis in data, and every data point must connect to a broader strategic narrative.

How to Execute a Strong Initial Engagement

To maximize valuation, sellers must prepare meticulously for this phase. This step includes not just materials but mindset and execution.

Build a Strategic Buyer List

A strong engagement process starts with knowing the right audience. The seller and advisor should carefully segment potential buyers into categories: strategic acquirers, financial sponsors, international buyers, or vertical-specific players. Each group may value the company differently based on synergies, growth potential, or platform fit. Targeting the right mix can maximize competition and offer valuation range diversity.

Perfect the Teaser and CIM

The teaser should be concise and highlight the most attractive attributes—revenue scale, growth rate, recurring revenue percentage, market position, and customer base. The CIM should dive deeper but maintain clarity. It should guide the reader through the business’s history, operations, financials, market opportunity, and future growth drivers. It should also highlight differentiators: unique IP, customer retention, or expansion potential.

Every chart, every KPI, and every paragraph should point toward the same goal: this is a business worth paying a premium for.

Rehearse the Management Pitch

Introductory calls or meetings are the first—and often only—chance for management to create emotional buy-in from buyers. These meetings should be rehearsed. The seller’s team should be prepared to answer common questions:

What drives your recent growth?
How sticky is your customer base?
What are the most significant risks to your projections?
How do you win new customers?
What does a buyer need to understand about your market?

Buyers are not just buying a business—they’re buying into a team, a story, and a plan.

What Happens If This Phase Is Mishandled?

To be sure, the consequences of poor initial engagement can be significant.

If buyers receive unclear or inconsistent messaging, they become skeptical. If financials are not crisp, they question reliability. If the process feels uncompetitive, they hold back. All of this adds up to one thing: lower bids. And once buyers anchor low, it’s challenging to reverse that perception later—even with better data.

In worst-case scenarios, buyers may walk away entirely or discount further during due diligence if trust is eroded. A weak engagement phase can undo months of preparation for sellers looking to maximize valuation and close quickly.

Some Final Thoughts

The Initial Engagement with Buyers phase is more than just a formality—it’s where the valuation battle is won or lost. It’s the first impression, the credibility test, and the emotional hook all in one. It shapes how buyers see the business, how competitive they feel, and how much they’re ultimately willing to pay.

This phase must be approached with discipline, precision, and confidence for sellers. It’s where the narrative is crafted, the buyer’s expectations are set, and value is defined—before a single number is written on paper.