Is growing inorganically your strategic choice? Have you acquired a company or are you planning to do so? As I wrote in one of the previous articles, it is important always to check the strategy fit from some different angles. Also, it is usually excellent to use external expertise when you decide to make multiple acquisitions. If it is your company’s first acquisition, it is critical to rely on outside professionals.
Financial advisors add value for their clients by collecting valuable information on the target company and the related industry. If your advisors have worked by themselves as leaders in that specific industry, the knowledge they have is usually very in-depth. In that case, they also can evaluate the cost of coming integration. Moreover, this is the part, where the acquisition is to succeed or fail.
- There are some significant benefits; you will get from outside experts already before the integration phase:
- You will have your strategy evaluated against your acquisition criteria
- They know the acquisition process and manage it on your behalf
- As advisors can reuse data on a target (industry) obtained in previous deals, they often hold exclusive information.
- They help your company to optimize the best deal structure
- You may need help also with funding options
- They help you to identify the best targets
- You will get a realistic view of the valuations of targeted companies
- They are neutral and constructive when negotiating with owners who do not want to sell
- The primary goal is to close the transaction if it makes sense to your company.
If you want to discuss closer getting an advisor to help your company to acquire more companies (or the first company), we are ready to discuss your plans and strategy. You can find our contact information on the Wolfcorner website.