When incremental gains in market share show diminishing net returns, a change in strategy may be necessary to achieve targets.
Eventually, every senior leadership team will confront the challenge: continue developing organic growth or reach for the next level with a faster, and potentially less expensive acquisition?
An acquisition of a profitable, cash-positive business can bring a wide range of benefits to the acquirer, some of which include access to technology, staff, new markets, new customers, and a fresh injection of management skill.
The challenge is in identifying prospective acquisition targets: companies with high value, strategic merit and strong financials – who may be interested in being acquired.
But the very act of ‘putting the word out’ can spook suppliers, customers, and potential targets, and ultimately set the initiative back.
When growth via acquisition is on the table, we leverage our extensive networks, and act as – or with – your brokers and M&A teams to give you the access to our proprietary process that:
- identifies and pre-qualifies prospective targets
- confidentially approach those targets, to determine their appetite to sell, or merge
- liaise with your counsel to get appropriate documentation drafted and executed on your behalf
- begin pre-qualification, and pre-valuation of the potential target business, by evaluating cash flow, balance sheet, profitability, size and durability of customer lists, stability of workforce, pending litigation, and other matters – all while keeping you at arm’s length until the appropriate time for entry.
The process is based on this outline: