There are only two ways of growing a business: organically growing a business, or acquiring another business. There may be many good reasons for acquiring a business:
- Acquisition may be an excellent way to expand into a new geographic area, much simpler and often less costly than building up a business from scratch.
- Acquisition may be an excellent way of acquiring:
- New clients;
- Technology or intellectual property; (it may be faster or less expensive than creating technology or intellectual property yourself)
- Well trained, highly skilled employees;
- Good retail locations.
- Acquisition may be a way of improving a company’s competitive position, also potentially eliminating a competitor, or potential competitive threat.
- Acquisition may help accomplish vertical integration (e.g. acquiring a supplier or client), to increase value added along the value chain, or secure exclusivity to a highly desired product.
- Acquisitions may be an excellent way of creating economies of scale or synergies, including improved buying power, greater inventory turns and reduced working capital, relative to the size of the business.
While the above list is in no way exhaustive, it becomes apparent that any good acquisition program should begin with a thorough strategic analysis. Some business owners acquire other companies as a means of making their company larger and more attractive for potential investors, thereby facilitating their own exit at a later date.
Robbinex offers comprehensive acquisition-related services:
- We work with company owners and management on the strategic analysis that drives the acquisition program, as a result of which detailed acquisition criteria are defined.
- We identify and contact companies that fit the acquisition criteria, determining suitability and willingness of target companies to be acquired.
- We perform a valuation of the target company.
- We assist in negotiating all agreements (confidentiality agreement, term sheet, agreement of purchase and sale, etc.)
- We assist and coordinate the due diligence process.
- We assist in closing the transaction.
- Optionally, we may also assist in obtaining acquisition financing.
- We may also assist with integration of the two businesses once the acquisition is completed.
Searching for a Business
Robbinex® Acquisition Search Program Includes:
- A valuation of your business
- A SWOT analysis of your business
- A summary of various alternatives
- A summary of companies in your targeted geography
- A detailed analysis of targets most closely aligned with your business’ goals
- Confidentiality Program ensures only those targets who pre-agree to confidentiality know who you are
- Valuation support on targeted businesses
- Negotiation support
- Due diligence facilitation
- Financing arranged (if needed)
Robbinex will manage each step in the process from the COSATA® to the marketing plan through to negotiations and closing.
“Completing a successful acquisition is not an event, but the result of a long carefully planned Acquisition Search Program, often spanning years.” D.M. Robbins, President, Robbinex Inc.