Business Acquisitions

One method of business growth or even to enter a market place is via acquisition.  This process can start from both knowing a particular company that you are wishing to acquire and also from wanting to enquire into a market segment.  Also, it is very rare that when a business is purchased, it is solely financed through equity capital. The gearing structure will change dependent on industry and other variable factors.

At The IBA we break down the whole process of business acquisition into 5 distinctive segments in which we have included estimated timescales:

Stage 1            Detailed review with Client
Stage 2            Desk and initial active search
Stage 3            Acquisition short list
Stage 4            Initiation of offer and negotiation
Stage 5            Completion

Stage 1- Review

A detailed review of the issues and requirements of the project with the client to include client profile, firmer profile of acquisition targets, pricing, management profile, track record, skills and objectives, management interests, objectives and conflicts of interest issues, range of funding commitments, timing of approach to funding institutions, timescales, search and review process, agreement on overall costs of project and shape of professional advisors and maximisation and realisation of return.

Stage 2- Desk & Initial Active Search

A desk and initial active search of targets is completed, in conjunction with reviews with clients.  The commencement of discussions with any private equity investors with an interest in active participation is undertaken.

Stage 3- Acquisition Short List

An approach is made to the candidates with an objective of developing a potential acquisition short list, agreeing outline acquisition proposal and preparation and presentation of business plan and initiation of funding proposals with loan and equity providers.

Stage 4- Initiation of Offer & Negotiation

Initiation of offer and negotiation with the intention of obtaining preliminary  heads of agreement, leading to due diligence and then management of project and completion with Client’s professional advisors.

Stage 5- Completion

The completion of the acquisition transaction including liaising with appropriate solicitors and lenders.

To discuss this service in more depth or to receive more information please contact us