For the Acquisition of Companies, a 3-stage Process is Usually Used
Each Stage Can be Ordered Separately.
Particularly common are the following occasions:
- the company purchase to round off the product portfolio
- the purchase of new technologies through a business acquisition
- the development of new target groups or market regions as well as
- the removing of a competitor from the market by taking over the company.
As a management consultancy we are gladly at our clients’ disposal to accompany them in all phases of the buying process.
Strategic Preparation of the Business Acquisition
Long before the actual purchase process starts, strategic preparation begins. The first step is to examine which companies qualify as a potential takeover target. Important aspects include the development of new sales markets and regions as well as the acquisition of technological know-how. It should also be considered what size the company should have and whether it is rather the acquisition of a profitable company, which is planned or whether the acquisition target may also contain restructuring potential. In addition, clear exclusion criteria should be defined. On this basis, the market can already be probed, so that a circle of potential candidates emerges.
At the same time, it is important to analyze which own funds are available and can be used. The focus is also on possible sources of debt capital. It is important to explore how cooperation with banks or other lenders can be made more efficient.
Contacting Potential Targets
If there is still no contact with the potential target company or companies, it still has to be built up and the fundamental readiness of a sale must be explored. No matter if a narrow or broad approach to target companies exists: It is advisable to intervene with a management consultant so that he or she will make the response anonymously until the time of a signed confidentiality agreement. As a result, the purchase request is not immediately known on the market.
Initiation of the Relationship and Due Diligence Process
First of all, a closer acquaintance process must be used to evaluate whether the company, with its products, markets, corporate culture, etc., fits in with the acquisition strategy and the own company and can generate a "strategic benefit". If the takeover goal is defined in the context of the target search, it must be checked how valuable the company substance is and what potential risks can be associated with the takeover. As part of the due diligence process, we, together with our cooperation partners, offer our clients professional support in all areas. We analyze facts and figures, evaluate entrepreneurial opportunities and risks, and summarize the results in a well-founded due diligence report.
Settlement of the Transaction
Of course, our services also include the support of our clients in the transaction of the corporate acquisition. We negotiate with sellers and financing partners and explore the scope for leeway. Our strong network enables us to connect with potential financiers, with a range of solutions ranging from traditional bank loans to bank-independent financing and equity instruments. Our network of external experts holds the option to also offer legal contract review and auditing if required.
Support in the Integration
With the completion of the transaction, the success of the company purchase is not yet guaranteed - because sustainable added value is only created with the successful integration. As a management consultancy with extensive expertise in this area, we create action plans and manage integration projects.
Experience and Quality
For many years, we have been successfully assisting corporate buyers in all phases, from the first strategic planning steps to the integration of the takeover target. Both in terms of the number of transactions supported and in the quality of advice, we have long ranked among the top management consultancies for M&A in German SMEs.