Acquisitions are an appropriate tool for the implementation of growth strategies. As an alternative to organic growth and greenfield investments, acquisitions provide a variety of opportunities for companies: expansion into new markets, products and customer segments, improvement of the competitive position and/or the increase of margins and business results.
CD Invest offers integrated advice on the acquisition process: in a first step, the growth strategy is analyzed and accordingly developed – based on the outcome, companies (targets) for a potential acquisition are researched. The considered parameters that are directly derived from the growth strategy of the buyer guide the research process and aim at identifying targets with the greatest benefits regarding a potential integration into the client’s company.
The calculation of an indicative business valuation, the creation of a buyer’s memorandum, the coordination of the due diligence (DD) process and the assistance in the purchase negotiation should be overseen by one partner to ensure the continuity of the transaction from one phase to the next.
- Preparation: analysis of the growth strategy and the definition of the resulting objectives, buying strategy, profound market research of potential targets (sellers) based on the acquisition strategy, long list, purchase price estimations, creation of target profiles, evaluation of alternative opportunities
- Marketing: contacting of potential targets, calls and personal interviews with potential candidates and decision makers, signing of a confidentiality agreements, overview of candidates willing to sell, creation of a short list, collection of first documents, calculation of an indicative purchase price range, identification of dealbreakers, preparation of non-binding Letters of Intent (LOI), data room request list
- Due diligence and negotiations: obtaining further documents according to data room request list, specification of the purchase price range, due diligence coordination, transaction structuring, identification and evaluation of dealbreakers, determination of negotiation issues, incorporation of the due diligence results into the business valuation
- Finalization: preparation of a binding bid/offer, coordination and management of negotiations, ”red-file” due diligence, contract signing, regulatory clearance and closing