Buying a
Technology Business
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.
Prism is not only well versed in the processes involved in making acquisitions but is also well-connected in the Technology sector with potential sellers. We can work with you to develop and execute your acquisition strategy, from exploration of the core objectives, to target identification & qualification, right through deal negotiations to completion.
Our acquisition services extend throughout the following:
Prism Acquisition Mandate
The Prism team constantly monitors M&A activity within the Technology sector and therefore understands the prevailing trends and appetite within it. We analyse numerous deals, looking at specific activities, deal rationales and deal metrics. This on-going valuable investment in our knowledge base allows the team to make informed recommendations to acquirers to ensure every aspect is considered and at the right time. The team can assist with some or all stages of the acquisition process. The fee structure is flexible depending on the specific nature of the individual 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 please contact us or click below to arrange a virtual meeting.
The Prism team also provides a range of Additional Services.
Talk to us
Take the next step and arrange a confidential and no obligation consultation.
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