Growth by Acquisition
Organic growth can be hard work.
Often there’s a better way to expand. Acquisitions can have various motivations: geographical expansion, diversification, the takeover of a supplier, customer or competitor. Normally, business growth can be achieved and cost synergies realised…
… but to achieve
2 + 2 = 5
you may need a helping hand.
Why use a specialist M&A Advisor?
Confidentiality and independence. Using an intermediary enables you to make approaches without revealing your identity
Accessing businesses not on the market. The best businesses may not be for sale – until we approach them on your behalf
Focus. Transactions can be incredibly time consuming and distracting. We focus on the transaction, in line with your instructions, allowing you to focus on continuing to run your business
Expertise. Most SME businesses do not have sufficient expertise in handling transactions. You, your accountants and lawyers will all have a role to play but orchestrating an acquisition is a different game
Deal structure. What is the best mix of cash up-front vs earn-out? Is there potential for part settlement in shares or is vendor finance an option? Baton Advisory uses innovative thinking to structure deals
Negotiations become difficult when people are too personally involved, when egos are at play and objectivity is lost. You will generally achieve a superior outcome by agreeing goals and having your M&A Advisor negotiate on your behalf. Remember, you may have to work with the vendor during a period of transition
Cost. It is likely that by using a professional M&A Advisor that you will reduce accounting & legal fees, save your time and, most importantly, achieve a lower purchase price than DIY
Success. Having an intermediary to drive the deal on your behalf helps to avoid stalemate
We define your Investment Criteria; size, location, industry/market sector & cultural fit. We then research potential candidates and construct a tailored Target List. Once you have reviewed and approved the target list, we confidentially approach the target and ascertain whether they are interested in further investigating a sale or merger.
After both parties have completed a Mutual Non-Disclosure Agreement, we undertake a Preliminary Assessment of the target’s financial & operational situation and synergistic benefit opportunities. We also seek to identify any potential deal-breaking issues.
Launch Negotiation. Formal negotiations commence when we assist you to make an offer in the form of a Heads of Agreement. We will guide you through the process to achieve the best deal possible.
We will work with your commercial lawyers as they construct the Sale & Purchase Agreement and your accountants and lawyers as they undertake Due Diligence. We will host the secure, virtual Data Room and project manage the deal.
Financing the Deal. We can liaise with you and your accounting and banking team to ensure that sufficient Capital and Financing exists to fund the transaction.
Settlement is the final step. The Baton of ownership is passed into your hands and becomes part of your expanded enterprise.