Adding Value – Finding Acquirers to Yield Maximum Value
There’s no magic wand to finding the right acquirer, and at the right time however, there are certain elements to consider and many stones to be unearthed.
There is no shortcut here… At Prism we start with a deep knowledge of the business and then brainstorm to consider what types of buyer might be relevant to the particular sale mandate. There follows much legwork – using in multiple databases (in-house and external), plus some Internet searching. The final target list is then discussed at length with the client. The client will have some ideas of the type of company to target, perhaps from a previous approach, and this can be built upon.
All targets are thoroughly qualified. For instance, have they made previous acquisitions? Do they have the resource to fund an acquisition? The Prism researchers also review the stated strategy and recent performance of each business.
Then the list is prepared, there will always be the opportunity for other targets to be introduced, for example from the extensive network of corporate finance advisors and other intermediaries that we have here at Prism. This is an important source of acquirers as they are, to some extent, pre-qualified. It also allows those not readily identifiable to be unearthed (e.g. strategic buyers from outside of the sector, private individuals looking to invest, the list goes on…)
Accepting the first approach will rarely yield maximum value – so the importance of a comprehensive, well qualified target list should not be underestimated.