Buy a
Technology Business
We offer advice on all aspects of acquisitions from initial strategic planning, target identification and valuation, through to deal negotiations, completion and beyond.
Buying a business can be a very effective strategy to acquire specific capabilities (in people or technology) or to simply build scale – perhaps with an enhanced exit at a later date in mind. Our focus on the tech sector ensures that we thoroughly understand both the technology drivers and the market drivers.
We are not only well versed in the processes involved in making acquisitions but are also very well-connected in the Tech sector with potential sellers. We first develop your acquisition strategy, starting with exploring your core objectives and target identification and qualification, then work with you through to essential deal negotiations and completion.
Prism Acquisition Mandate
We like to keep an eye on M&A activity across the tech sector, so we constantly monitor transactions and therefore understand the prevailing trends and appetite within it. We invest time in analysing deals, deal rationales and deal metrics. This on-going valuable investment in our knowledge base allows us to make informed recommendations to acquirers. We can help at any stage of acquisition, and the fee structure is flexible depending on the specific nature of each assignment.
Typically, a business acquisition involves the following stages:
Buyer's Objectives
- Assessment of desired outcomes
- Understanding of ultimate end game
Formulation of Acquisition Strategy
- Key criteria
- Funding implications/raising finance if required (including from Private Equity, as appropriate)
- Timing
- Integration plans
Identification of Potential Targets
- Utilise large in-house and other databases, industry contacts, knowledge and experience to identify appropriate targets
- Qualify target lists through detailed research
- Contact and elicit interest from identified targets directly or via their advisors (as appropriate)
Managing Interested Parties
- Review of Information Memoranda or other information submitted
- Obtain additional information required for detailed evaluation
- Analysis of information provided and prioritisation of key targets
- Facilitate meetings between buyers and prospective vendors
- Advise on merits of proposed acquisition
- Formulation and negotiation of initial offers
- Maintain deal momentum
Heads of Terms
- Drafting initial Heads of Terms
- Negotiation of Heads of Terms
Due Diligence
- Project management of the process
- Data room management
- Liaising with other professional advisers (on both sides)
Completion
- Managing any last-minute negotiations
- Agreeing principle sale documentation and ancillaries
- Concluding the transaction (ensuring the money has moved!)
Post Completion
- Assistance with managing post completion mechanisms (eg. reviewing completion accounts, computing earn-outs etc)
For more information about buying a technology business with Prism or any of our other services please contact us or click below to arrange a virtual meeting.
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