Vantis Corporate Finance can work with you at every stage of the acquisition process, from initial identification of a suitable target, negotiating the deal and helping you to raise funds, through to the final completion of the deal. Here are the main points you should consider:
Why buy a business?
- a route to new products/markets
- commercial opportunity
- management buy-out
- need to expand geographically
- over-capacity / high fixed costs
- more product lines needed
- lack of critical mass
The search and acquisition process
This can take a number of different routes:
- reactive or proactive
- confidential or direct
- via a specialist
Negotiating the purchase
- how much do the vendors want?
- how to pitch your initial offer
- negotiating Heads of Terms and signing an exclusivity agreement
- impose a timescale
- know when to walk away
Finding funding
There are many different funding options available:
- own capital
- external debt and / or equity
- leveraging combined assets
- deferred consideration
- earn-out
- vendor loan
Due diligence
- financial, tax, legal and commercial due diligence
- to confirm key acquisition benefits
- to ensure no hidden liabilities
- financial assistance “whitewash” reviews
Structuring
- Briefing and working with your chosen advisers with regard to tax and legal structuring
Post-acquisition integration: key points to consider in liason with other specialists from Vantis Group
- the first 100 days are crucial
- management integration / incentivisation
- change management - culture issues
- IT/systems integration
- employee issues
- tax planning