SUCCESS FACTORS 

Extensive research in both the UK and the USA in recent years would suggest that the major reasons why certain acquirers succeed while the majority fail, are:- 

 • Developing an overall strategic plan which specifically includes a planned acquisition programme. 

 • Carefully formulating a detailed set of acquisition criteria consistent with overall strategy - and rigorously apply them without exception. 

 • Operating an active and well structured company search and appraisal activity. 

 • Identifying the acquirer's top executive responsible for each acquisition's success. 

 • Conducting detailed executive assessments/appraisals of the key managers before the company is acquired. 

 • Reporting relationships immediately being made abundantly clear to the acquired company and then changed only when absolutely essential. 

 • Dedicating sufficient management resources to manage the delicate but essential post acquisition integration of the acquired company. 

We have considerable experience in this complex area and have successfully assisted both public and private companies grow rapidly by acquisition/merger.  We can help in each of the above seven key areas. 

POST ACQUISITION 

The critical make or break period for an acquisition is immediately following the purchase.  It is essential that sufficient quality management resources are available - managers of change.  In most successful takeovers new managers were introduced by the acquirer or the existing management of the acquired company were motivated by the acquirer to make profitable changes. 

We have much relevant experience of post acquisition management/integration/motivation. 
 
HOW WE CAN HELP 

Acquisitions of quoted companies are generally instigated/managed by merchant banks, lawyers, accountants and corporate finance specialists.  However, the acquisition of private companies is generally of much less interest to such advisors as their high fee scales represent a disproportionate percentage of the acquisition cost.  We have significant company search experience and can effectively identify, amongst the circa 1m active UK private companies, suitable potential targets consistent with the agreed acquisition criteria. 

Attractive acquisition opportunities are rarely advertised or actively marketed.  They have to be discovered and developed in much the same way as headhunters operate on executive search assignments.  Besides our above search process we maintain extensive contacts in banking, legal and accounting circles. 

Confidentiality of the acquirer is sometimes initially important, to ensure a successful acquisition. 

Negotiations conducted by us - at least initially - can avoid the usual buyer/seller adversary positioning. 

Buying companies is paradoxically a selling process.  Initial discussions with potential vendors provide one chance only to create a good first impression which can be developed and built upon subsequently. 

OUR SEARCH AND APPRAISAL PROCESS 

Strategy: 

Review/develop overall strategic plan and planned acquisition programme. 

Formulate detailed acquisition criteria consistent with overall strategy. 

Identifying acquisition targets: 

Uncover appropriate target companies. 
Confirm availability, subject to negotiation. 
Analyse/evaluate target company in depth, visit operations and assess management.  
Present a short-list of suitable companies. 
 

Negotiations: 

Determine strategy, parameters and targets. 
Open and co-ordinate negotiations. 
Structure, prepare and issue offer. 
Produce a letter of intent covering agreed deal between parties. 

Conclusion: 

Co-ordinate lawyers, accountants, bankers, particularly regarding investigations and documentation. 
Ensure achievement of completion time table.