Buy Side Search & Representation

• Benefits of a proactive, retained search
• Key success factors in corporate acquisitions
• Our buy side search and representation process and timing

• Quicker results.  It may be years until a suitable acquisition target comes on the market. In the meantime, all the potential synergistic benefits of an acquisition are lost, or a competitor may acquire the ideal target.
• Proprietary deal flow.  The client gets proprietary access to companies that are not formally for sale; thus, the client is not bidding against other buyers.  By contrast, if the target has retained a intermediary to sell the company, the client will likely be bidding against others in an auction format.
• Access to the highest quality businesses.  Many of the best companies never go on the market.  While there are great companies that hire a intermediary to sell, many never do, as they sell quietly to competitors, customers, suppliers, employees, etc. that approach them.
• Sellers are much more open.  Sellers are more willing to engage in discussions with a professional business intermediary than a random buyer who approaches them, or with a buyer from in their industry, as they worry about such buyers’ intent.  The fact that the buyer is willing to engage and pay for a intermediary communicates forcefully that the buyer is serious about making an acquisition.  In addition, many sellers are reluctant to pay intermediaries, even if the intermediary gets them a higher price that more then compensates for the fee.
• Lower price.  Sellers will often accept a lower price if the buyer is paying our fee.  Sellers think in terms of what they net from a sale, after commission, not the gross selling price.  Sellers often tell us, "well, I need to net $XX on the sale, so let's price it at $XX + your commission".
• Sellers may lack professional representation.  When we approach an owner on behalf of our buyer client, they are very unlikely to hire a intermediary or other experienced negotiator to represent them.  Many business owners are lousy negotiators, and their lack of representation gives the buyer a substantial advantage. 

VR’s structured buy side search and representation process ensure these success drivers are incorporated throughout for optimal results.

• Develop an overall strategic plan for your company, with a comprehensive M&A plan and clear objectives as one integral part
• Elevate M&A to the highest level strategic priority
• Assign, recruit and/or retain an experienced team of professionals to implement the plan (M&A, legal, financial, HR, etc.)
• Pursue a structured, disciplined and comprehensive search for targets
• Evaluate the deals carefully to assess the real value to be created
• Insist on a cultural/ personal fit
• Seek to create win/win deals
• Be thorough in your due diligence
• Integrate systems, products, facilities, and technology carefully
• Communicate openly and proactively, and devote extraordinary attention to people issues.

For clients that engage us in a retained search, VR takes the lead in directing efforts in all the action steps in the table above.  In some of the activities we drive the process and do the vast majority of work (e.g., identifying acquisition targets, contacting and negotiating with targets, estimating the value of the company), while in others we facilitate, direct and coach the client and its advisors on the activities (e.g., definition of objectives and criteria, drafting of legal documents, completion of due diligence, preparation of integration plans).

We are happy to provide a complimentary consultation for anyone considering a proactive search.  Contact us for more information.

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