For Buyers

Sourcing New Deals

Acquisitions remain popular because they represent the surest way to rapidly increase company revenues. Acquisitions allow a company to sell new product lines to new and existing customers, to sell existing product lines to new customers, and to spread fixed asset and overhead costs over higher sales volumes.

At the same time, acquisitions come with risks. The simple truth is that many of them destroy rather than create value. This happens for predictable reasons:

  • Poor fit between acquiring firm and target
  • Optimistic assumptions around revenue enhancement opportunities
  • Senior management incentives misaligned with corporate goals
  • Inexperienced acquisition team leading to failures in integration planning and execution
BSC brings seasoned experience to your team, enabling your firm to maximize your chances of a successful acquisition-led growth strategy through:
  • Rigorous industry analysis and benchmarking to identify and rank the best opportunities and the best timing
  • Working with senior management to secure buy-ins to a realistic, fact-based integration plan
  • Leading negotiations with targets to ensure a smooth transition from term sheet to completed transaction

Strategic Planning

BSC will assist the company in developing a tailored acquisition strategy. In consultation with senior management we will:
  • Develop a list of characteristics for a successful acquisition
  • Create a generic financial model with an internal rate of return threshold
  • Structure a framework for valuing potential targets
  • Canvas appropriate markets to determine the availability of suitable targets at an accretive price

Execution

BSC works with public and private clients to identify and evaluate strategic opportunities. Once BSC identifies specific opportunities, our professionals oversee and manage each phase of the transaction, including negotiating and structuring the transaction. Our professionals also raise capital to finance those acquisitions. During this process BSC’s professionals will:
  • Build proprietary deal flow for our clients. Bailey Southwell has extensive networks of contacts in the middle-market industries we serve. We maintain an active presence in these industries so we can be aware of potential sellers. Additionally, many private equity firms maintain relationships with BSC because we help them identify opportunities with the clients in the industries we serve
  • Develop a tailored strategy for accomplishing each acquisition, including the structure, conditions, and financial terms
  • Negotiate with each acquisition target on behalf of our clients
  • Perform due diligence on the acquisition targets
  • Take the lead in executing each acquisition, including coordinating outside legal, accounting, and tax advisors as necessary
  • Assist our client with the integration of the companies post-closing