As an entrepreneur, you may occasionally think about the future prospects and growth opportunities of your business. Growth can be achieved organically or through the acquisition of another company. You may even already have an acquisition candidate in mind. Whether buying a company allows you to start your own business (management buy in) or take over your employer’s business or a part thereof (management buy out). Acquiring a company is an important decision and is a complex process.
For entrepreneurs and companies ‘on the move’, Corpance is the dynamic advisor, financial expert and confidant for purchase guidance. Corpance’s advisors have already logged many flying hours.
Corpance is a dynamic advisor, financial expert and confidant for acquisition guidance for entrepreneurs and companies ‘on the move’. Corpance’s consultants have already logged many flying hours. As a process facilitator and ‘co-pilot’, we relieve your burden during the entire acquisition process, while you remain in full control as the ‘pilot’. We would love to get on board with you and allow growth to take off.
The entire process consists of the following steps:
1. Inventory
2. Party approach
3. Exclusive negotiations
4. Due diligence
5. Financing
6. Closing
7. Follow-up
Inventory
We ask about your investment rationale. What do you want to achieve? This could include expanding your market, strengthening in the business chain or achieving cost savings. Besides your wishes in terms of a suitable acquisition candidate, we also list and analyse whether your business is financially and operationally ready for an acquisition. We provide an initial estimate of a real acquisition budget, how the acquisition can be financed, and what is the most optimal financing structure. Corpance can also put you in touch with capital providers.
Party/parties approach
We will prepare a list of prospective sellers in consultation with you and approach the party or parties you selected. We request further financial and other information when there is an interest in selling from the approaching party. To this end, you must sign a non-disclosure agreement, given the confidential nature of an acquisition. On the basis of the information received, we can estimate what is a fair value and acquisition price of the company to be acquired and determine how the financing can be arranged. We will then prepare an offer letter in consultation with you, including the price, preconditions and reservations.
Exclusive negotiations
If the prospective seller is seriously interested in selling the company to you based on the offer letter, we will enter the phase of exclusive negotiations and a letter of intent is signed. Naturally, we would be by your side in all these steps. The buyer usually takes the lead in having the letter of intent prepared by a specialised lawyer or attorney. We read through this with you, and make adjustments where necessary.
Due diligence
You, as the buying party, will be given the opportunity to conduct audits. Usually the seller facilitates this through an online platform. We can conduct the audit or part of it on your behalf, or accompany you as you do this yourself. On a satisfactory outcome of the audit, the purchase agreement can be prepared. Also here we read through it with you and adjust where necessary.
Financing
Corpance can support you in securing financing. At the exclusive negotiations stage, we can already start working on this.
Closing
The notary transfer takes place upon finalisation of the purchase agreement. ‘Close the gates’!
Aftercare
Even if the ‘gates are closed’, you may still expect guarantees and management performance from the seller, for example. This is also only the beginning for you! The acquired party should be integrated into your current company, which is quite a task! You may either be starting out as an entrepreneur on your own, or you are suddenly no longer an employee, but an entrepreneur and owner. That is a major change and we will not let leave to fend for yourself. We ensure that you have a good landing.