How
to find more quality companies to purchase
Acquisition
possibilities can pop up without warning and usually need to be evaluated
quickly. A core challenge in sizing up potential acquisitions is to balance the
need to think strategically with the need to react opportunistically.
Experienced acquirers follow two simple rules in screening deals. Look at
everything and keep a strategic focus. This
exercise brings discipline and speed
into the acquisition processes which ultimately leads to success in a fiercely competitive
field. Being in
a position to purchase the right company when the opportunity presents
itself is important. Working with an intermediary who is actively searching
for companies matching your purchase criteria can help you identify more
qualified sellers quickly. An M&A advisory firm who represents the
marketplace in your industry will introduce you to more qualified sellers and
avoid missed opportunities. While there are plenty of businesses for sale,
good deals are identified by industry M&A professionals first and acted on
immediately. Working with Franklin Hamilton allows you to be first to review
companies when those rare
opportunity arises. Working with qualified sellers saves you time, helps
you avoid missed opportunities and contributes to a winning M&A growth strategy.
Why
you shouldn't miss the hidden market of "Silent" Sellers
Franklin
Hamilton's research shows 20% of business owners are "silent seller"
in the technology, printing, and advertising industry. The
definition of a "silent seller" is a seller who is willing to consider
any reasonable offer, but is reluctant to market their companies openly. While Franklin Hamilton aggressively promotes their active
clients, Franklin Hamilton works with many more sellers who prefer a quiet sale
under the strictest confidentiality. The advantage of working with
"silent sellers" are many. First, your market place of quality
companies is greatly expanded because you are not limited to the current sellers on
the market. Also less competition will result in both a better deal and a
greater
chance of a success.
Buyer's
Search Challenges
Searching for a
quality company to purchase has never been an easy task. Companies without a corporate development
team may see this as an impossible job to do alone.
Those that do have M&A departments run into the following
obstacles:
-
Overwhelmed
with unqualified deals.
-
Intermediary
seek to sell only their client companies instead of searching for best
matches for your company
-
Heavy
workload from initial searches leaves no time to find and evaluate
concurrent opportunities
-
Difficult
to commit and allocate hundreds of hours to contact and follow up on potential target sellers directly
-
Potential target companies you have identified changes their selling decision at the last minute when you have already invested a great amount of time and money into the transaction
-
Industry standard SIC Codes are too broad to narrow your search to specific target companies that best meet your
requirement
Franklin Hamilton's
core services eliminates the search obstacles for the buyer. Having
identified the active participants in the marketplace, Franklin Hamilton can
supplement your existing M&A team or function as your M&A arm
companies without an existing team.