Acquisitions can be used to add scale to your business or to acquire assets or capabilities that you don’t currently have to make you more competitive. Our acquisitions experts have significant buy-side experience and can help you create transformational deals.
What does this service provide?
If you want to expand your business through acquisition, here’s some of the support our specialists can offer:
- We will work through the strategic rationale for acquiring to ensure your reasoning is sound.
- We will offer the combined expertise of our Acquisitions, Equity Advisory and Debt Advisory teams to discuss the options available to ‘make it happen’.
- Our Acquisitions experts can advise on valuation negotiate the purchase and transaction structure as well as handling the complex transaction process. Using their deep experience will ensure you avoid transaction pitfalls.
- Our Debt Advisory team can offer expert advice in debt funding and can arrange loans to fund the acquisition.
- Should funding be needed above and beyond the scope of debt, our Equity Advisory team can find the right solution.
- In combination, our expert teams can ensure that the intended acquisition is achieved at the right price, on the right terms and is appropriately funded.
Important things to consider
- An acquisition differs from a merger whereby one of the entities controls the other. An acquisition is a potentially transformational activity, but it is also high-risk. Many acquisitions have devalued the resulting entity as they were poorly handled.
- Acquisitions only work if you pay the right price. Valuation is one of the key aspects of any transaction. Business valuation can be very challenging to establish let alone agree with a seller.
- Due diligence is critical, the assets you may be acquiring could be worth less than you think, or you could be acquiring hidden liabilities. But equally important is structuring the transaction to protect you as the buyer should post deal issues arise.
- Finding the right balance between opportunity and risk takes experience and is a function of deal pricing, structure and terms combined with a sufficiently flexible finance package to deal with the inevitable unknowns.
- In many transactions, a close relationship between the seller and the buyer can be an asset, but there are almost always points in the deal where an independent expert advisor is crucial to move the relationship through difficult points of negotiation.
- Don’t forget the post deal work. Buying the business is only the first step. Extracting the value that was there on paper is the most difficult part. Post deal integration and or management is essential.
How much will the service cost?
Our fees are designed to ensure that we are totally aligned with your objectives. We have designed, over years of experience, a balance between commitment fees and success fees that makes sure that we are “in it together”. Our objective is for clients to always see value in our fees that significantly exceeds cost.
What should I do next?
If you would like Shaw & Co to help you with an acquisition of a target business, please contact one of our corporate finance experts shown on this page, or click the arrange a meeting button.
“Acquisitions are a great way to build your business. But they are complex and require deep expertise to get them right. We see many unadvised transactions fail where expertise could have bought about a solution. Equally, having someone independent beside you can be invaluable when the right thing to do is walk away. It can be all too easy to become emotionally involved and complete the deal for the wrong reasons.”Jim Shaw, Founder & Partner