There are six distinct stages in making a satisfactory acquisition.
Not all clients require help in all stages. For example, corporate strategy will have often been agreed upon by the Board before our involvement.
Similarly, where there is a closely targeted acquisition strategy centred on the company's existing market - it is probable that management will know their UK competition and the likely targets.
Conversely, however, where the company is diversifying into a new area, either vertically or geographically, management will need help in finding suitable candidates.
1. Determination of Corporate Strategy
We can assist in defining or reinforcing your corporate strategy by helping facilitate your Board workshops, by providing market data and by helping you to evaluate objectively the merits of an acquisition when set against alternative growth strategies.
2. Definition of Acquisition Criteria
From your agreed acquisition strategy, we will help prepare a generic profile of your ideal target company to be used as a blueprint for searching for targets.
3. Identification of suitable targets
We have an extensive database suite from which we can identify companies matching the profile. Having provided brief summaries on a long list of target candidates, we will help narrow down the target group to an agreed shortlist.
4. Approach and negotiation
An advisor acting on a client's behalf is often more successful in arousing interest from the target than if the initial approach is made by the principal. In these early stages of buying a company the acquirer has to get across to the benefits of the acquisition. Because we have acted as principals on many acquisitions, we know the way in which these early discussions are best facilitated and how they may be led into more detailed negotiations.
5. Due diligence and legal process
We believe a successful transaction only comes as a result of a close teamwork, not just within our own team, but also with you and your advisors. Whilst we do not provide detailed due diligence, we support and guide throughout the due diligence process and liaise with your reporting accountants and legal advisors.
6. Post-acquisition integration
Acquisitions can end up as costly mistakes. To give the maximum chance of success it is essential that during the due diligence process, we work on a post-acquisition plan which will be implemented rigorously after the main transaction. Again this is an area of considerable expertise.reporting accountants and legal advisors.
