Acquisition of Business

Acquisition of Business

Accelerate your growth and success by acquiring existing businesses.  If you own a company and want to increase capacity, expand into new markets, and expand your customer base quickly, acquiring an existing business can be an effective strategy.

 

But it's hard to know where to start. How do you find a business that meet your criteria?  What is the market valuation of a business?  How do you structure a deal that makes sense for both you and the seller?

 

Acquisition Candidates

We first examine your requirements – geographic location, industry, market positioning, business size, profitability, stage of maturity, etc.  We will search for potential businesses to meet your acquisition criteria, even if they are not for sale.   Once we identify our targets, we approach businesses that meet the required criteria.

 

Preliminary Analysis

At your request, our professional advisors will conduct an initial assessment of the business you are considering to determine its fair market value. Our analysis includes: Knowledge of potential competitors and industry health to establish realistic expectations before you start buying a business.

 

Financial Due Diligence

Together with a selected accounting team, we will conduct a thorough, in-depth analysis of the target company's financial information to verify its accuracy and completeness. Before we begin negotiations, we want to make sure we understand the true picture of the company's financial position.  This is critical to determining the intrinsic value of the target company.

 

Financial Modelling

We create financial models to determine the incremental value that may be created in an acquisition.  If the deal closes, you'll be able to view the projected financial statements showing the projected performance of the business over the next few years.  These forecasts are used as input to the valuation process.

 

Funding Needs

We will assess the funding required for the transaction and advise on the best debt vs. equity options. We may be able to make up any shortfalls from a variety of capital sources. We can also explore the possibility of seller financing.  Industry data shows that in about 85% of acquisitions, the seller finances part of the purchase price.

 

Negotiation

From the initial conversation to closing, we guide the deal from inception to closing. Sellers typically employ skilled professionals to negotiate, and while decisions on structure, timing, price, and financing terms are up to you, leveraging our expertise and experience allows you to maintain a strong negotiating position.

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