We help in buying businesses, selected assets, and business units. We have the experience and qualifications to assist you with the many decisions you will face in this type of process. We advise our clients through each stage of the process (please see graph below) from preparing the acquisition criteria through closing of the transaction.
Do not hesitate to contact us to have more information on how we can help to acquire a business.
Why to acquire companies?
There are a number of reasons. Some of the most common ones are the following:
Geographical expansion
Vertical integration
Increase market share
Augment market portfolio
Achieve synergies / achieve economies of scale
Gain knowledge / proprietary technology
Diversify portfolio
What is the typical process for an acquisition of a company?
The graph below presents the typical process for the sale of a company and the main activities in each phase:
What are the benefits of having an advisor helping you in the acquisition process?
Some of the benefits are the following:
Focus: Having an advisor allows shareholders and management to focus on the administration of the company. Shareholders and management enter the process to determine strategy and take the decisions of the process.
Experience: Having advice from professionals whose day-to-day is to work on Mergers and Acquisitions facilitate the process. To have an M&A advisor with significant deal experience, knowledge of the industry, market, and economic conditions will help to get to a satisfactory closing.
Credibility of the process: The hiring of an advisor signals the potential target that the acquirer is serious about the process and is committed to closing the transaction.
Coordination of activities: Financial advisors coordinate the numerous activities of this type of process and the other advisors of the process (legal, tax, and others as necessary).
Stress: When the company is family owned and run, this type of process poses a lot of stress on the family. Thus, having a financial advisor in the process avoid partially the stress of managing it directly.
Pricing: A financial advisor helps putting together objective valuations of target companies and will be able to quantify a price range that will be useful during the negotiation process.
Negotiation: A financial advisor is very helpful during the negotiation process. It avoids the need for management / shareholders to negotiate directly with the target and avoid any type of stress in the relationship. Also, it helps to execute the negotiation strategy, avoiding the need to have shareholders / management direct participation in the negotiation meetings.
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