Growth Through Acquisition
You’ve scaled your business, met projections and its time to take the next step. Maybe you’ve decided to target more market share by looking to acquire companies within your industry. Or perhaps you’ve decided to decrease costs and apply a competitive advantage by vertically integrating an acquisition within your supply chain. Whatever the reason, an acquisition is in your future. At stake in executing a successful transaction is no less than the future success of your organization. Second Wind believes that successful merger and acquisition objectives follow a path of strategic planning, market research, negotiation and execution, and integration of company cultures.
Strategic Planning and Market Research: It All Starts With the Right Target
Understanding your competitive advantage as well as your operational weaknesses will allow for market research to be done to identify target acquisitions that could reduce costs, add operational efficiencies, or grow core competencies. Second Wind Consultants begins with an operational and financial audit coupled with extensive market research before recommending any acquisitional targets. Our discovery period allows us to understand where an acquisition could provide the most value to your organization and then target companies that fit that profile. Once target companies are identified, extensive financial modeling will be completed so that you have all the information you need before pursuing a company to acquire.
Negotiation and Execution: Know What Terms Will Get the Deal Done
Once research and modeling are complete, it is time to make an offer and pursue a closing. Second Wind will complete a valuation independent of any asking price, based on all available information. This process informs the appropriate initial offer to a potential seller. Negotiation will engage beyond price, to include the terms and conditions which ultimately will determine return on investment. Terms, conditions, seller financing, holdbacks, earn-outs, and benchmark-based compensation are all ways to negotiate a competitive price while covering downside risk. Using these tools will assure a deal gets done and both the buyer and seller are satisfied pot-transaction.
Integration: Successfully Completing the Acquisition Is Not Enough
When the deal closes, the work has just begun. You are now tasked with integrating new systems, employees, and products into your existing business. Second Wind believes in having an integration plan prior to any closing. Employees and their current culture and habits will need to assimilate into your existing pool of employees. Systems operating between the divisions of your companies will need to communicate and merge effectively.