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.
Analysis of the growth strategy
Definition of the resulting objectives regarding inorganic growth
Buying strategy
Profound market research of potential targets (sellers) based on the acquisition strategy
Creation of a long list
Purchase price estimations
Creation of target profiles
Contacting of potential targets
Discussions with potential candidates and decision makers in order to determine relevant transaction parameters
Signing of confidentiality agreements
Overview of candidates willing to sell/creation of a short list
Collection of documents required for an indicative purchase price range and a buyers memorandum
Identification of dealbreakers
Definition of a transaction structure
Preparation of non-binding Letters of Intent (LOI)
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 purchase price indication
Preparation of a binding bid/offer
Development of a negotiation strategy
Determining negotiation parameters
Coordination of the ”red-file” due diligence
Closing
