Exponential growth can be achieved when completing an acquisition or merger and in fact vertical or horizontal expansion may not be possible without such a transaction.
An acquisition or merger of assets can be a complex undertaking, hence teaming with a Lead Advisor or gaining Support can help navigate a successful transaction.
Many acquisitions or mergers fail and the acquirer does not achieve the financial, commercial or strategic objectives set at the time of buying the business. Failure essentially fits into the five phases of an acquisition:
- Flawed business logic
- Flawed understanding of the new business
- Flawed deal management
- Flawed integration management
- Flawed corporate development
At the outset, it is critical to gain comfort over the above. By working closely with our small-medium business clients, we address all five phases as part of the acquisition to ensure our clients give the green light before proceeding.
Our fundamental goal is to deliver long term value and success to our clients business.
We are able to take either a Lead Advisor or Support Advisor role to manage the demanding needs of complex transactions.
Our approach in acting as Lead Advisor for a business acquisition or merger includes:
- Ensuring vendor readiness for acquiring a business
- Development of an acquisition strategy that covers:
- Strategic business requirements
- Cultural fit
- Vertical or Horizontal integration value benefit
- Long term positioning for overall business
- Identification of potential acquisition targets
- Approaching acquisition targets
- Exchange of confidentiality agreements
- Performing an initial review of the business
- Assessing the “fair value” of the target
- Identifying the optimal structuring
- Negotiating a heads of agreement
- Advising on funding options & executive incentives
- Finalising purchase negotiations, including:
You may have already sourced an acquisition or merger opportunity directly or may have a Lead Advisor assisting in the transaction.
As Support Advisor, we can manage the following:
- Business due diligence
- Financial due diligence
- Preparation of investigating accountants report
- Managing legal, commercial & strategic due diligence
- Handling the terms of acquisition/merger
- Tax Consulting expertise