Buying a company
Bridge Mergers & Acquisitions specialise in helping our clients buy companies. The process
is as follows:
Determine Acquisition Criteria
The first step we take in the process of acquisition is to determine our
client’s objectives. This involves becoming familiar with the business so that
we can fully understand it. Not only does this enable us to appreciate our client’s
acquisition requirements but it also allows us to represent the client properly to potential
sellers at the appropriate time.
Acquisitions Market Research
Once the acquisition criteria have been agreed we identify suitable companies for purchase.
We undertake comprehensive acquisitions market research to identify suitable companies, regardless of whether
they are currently for sale. As a third party, we can approach, in total confidentiality,
many companies with which our clients would otherwise find it difficult to open
negotiations.
We research publicly available data, and only approach companies after the basic
information is obtained. We have good acquisitions market research resources in the USA, Germany and Japan
as well as the UK. We do not identify our client in these initial approaches, and
usually the potential vendor is quite happy to talk about his business (often at great
length!) without knowing much about our client. The important factor is that he knows
we “have a client”, and this is achieved by the quality of the criteria and the approach.
Carrying out a carefully planned Contact Strategy
We build a shortlist of company profiles for presentation to the
client. The list will be of companies that fit the criteria and with owners that are
willing to talk realistically about selling. Working with the client, we select together
those targets which best fit the criteria. The selected targets are then approached, when
the client is identified, and his ‘vision for the future’ is discussed in detail and common
ground is established. This would include an indication of value.
Negotiation and Completion
Where required by the client, we assist in the negotiations and seek to reach a Heads
of Agreement between our client and the companies finally selected for acquisition. We are
mindful that sometimes the seller is selling his business for the first and only time and
will need to have his trust and confidence in the whole process maintained.
Our role is to limit the management time and professional fees that our client spends on
situations, particularly those that might ultimately prove abortive, For example, in the UK
we advise that solicitors are involved only after a Heads of Agreement is in place.
As required by the client, we can assist with the management of the due diligence and
documentation process from Heads of Agreement (or Letter of Intent) to the final completion
of the transaction.
Conclusion
Acquiring other companies can be a risky and expensive business. We can reduce the risk
and expense in three crucial ways.
- First, using effective acquisitions market research we provide a comprehensive list of
potential targets.
- Second, difficult and time-consuming situations, which are likely to prove abortive,
are recognised and eliminated at an early stage.
- Third, we are experienced in ensuring (with a lawyer in-house) that the due diligence
and documentation process itself does not derail the transaction.
Conversely, acquiring other companies is an excellent way to acquire assets and new growth
potential. Bridge Mergers & Acquisitions' method maximises the number of companies that can be considered and
minimises the legal and accountancy costs of acquisitions. Based on success, our method of
charging is designed to create a joint venture where we work together to achieve a common
objective.
Fees
Our fees are competitive and follow best practice for the industry. They are success related –
a percentage of the price paid for a company.