Acquisition Services

WHY RETAIN AN ACQUISITION ADVISOR?

Making successful acquisitions is a challenging, time-consuming process. The risks of picking the wrong company, structuring the transaction incorrectly, or overpaying are significant. An acquisition gone wrong can cause substantial loss of value to the acquiring company and its shareholders.

Most senior executives in an acquiring company have important full-time responsibilities for keeping the existing business growing and healthy. Few but the largest companies have financial executives with the M&A experience necessary to assure a smooth deal -- and the time to do so without neglecting other duties.

For these reasons, both large and smaller acquirers typically engage a financial advisor to assist them throughout the acquisition process.

WHY TRANSITION STRATEGIES?

Transition Strategies is an M&A and consulting firm focused solely on the research industry. Through dozens of acquisition and divestiture transactions, we have learned what it takes to identify, screen, negotiate, and close a successful acquisition.

Our three principals have, between them, decades of experience as research industry executives. We understand the business and the pressures that you face. You won't waste time training us. Your work won't be delegated to a junior staff member.
We have a broad network of contacts throughout the industry. We can help you quickly identify acquisition candidates and can often provide insight into their strengths and weaknesses before approaching the companies.
We pay careful attention to the non-financial aspects of each proposed transaction as well as the financial ones. Good chemistry and compatible cultures are key to making strategic acquisitions successful.
Your business is important to us. We have committed ourselves to the research industry. Your satisfaction is vital to our ongoing success.

OUR SERVICES

Each acquisition situation is unique. Some acquirers approach us with a specific candidate company in mind, while others are just defining their growth goals and strategies. Following is an overview of our full range of acquisition services. We are flexible in what we will provide.

Help the buyer to define goals, focus interests, and set financial parameters for acquisition. At the end of this stage, buyer management should reach consensus on the type of companies to be targeted (industry specialization, size, location, condition). This stage is critical to later success -- and particularly key in reducing the chance of overpaying for a company.
Identify potential targets, screen them for suitability and interest, and elicit information needed for analysis. During this process, we must develop seller interest (often in the face of competing or past solicitations) while obtaining detailed, confidential information about their operations.
Evaluate candidate companies. Recommend whether to make an offer and, if so, the amount and structure. We assess the candidate against publicly available transaction data and our databases of past valuations and transactions. We also take into account key factors such as management strength and the seller's situation to determine the fair price and terms for an acquisition candidate.
Negotiate on behalf of buyer, to the point of letter of intent. We typically transmit the initial offer to the seller or his representative, follow up on it, and negotiate back and forth until agreement is reached or negotiations are ended. Because we act as intermediaries between the buying executives and the selling owner, good relations between buyer and seller can be preserved after the transaction is closed.
Assist counsel, CPAs, and the buyer during contract negotiation, due diligence, and closing. Problems often emerge during this final stage that can throw a good transaction off-track. We work with professional advisors and principals to find solutions that enable the acquisition to move forward.

Please contact any Transition Strategies principal for pricing or other information concerning acquisition services.