Case Studies

Acquisition due diligence

Fork in the Road
As the number three manufacturer of outdoor recreational products, our client was struggling to move up the food chain. They had identified an acquisition target that had the potential to significantly increase their sales as well as give a boost to their traditional products. The valuation that the target.. Read more

Finding a Needle in a Haystack
Buy-Side Acquisition Search

Buy-side advisory

Growth through acquisition can be a very opportunistic strategy to take advantage of a depressed market. If implemented correctly, it can lead to an increase in market share, profits, as well as competitive advantage. Direct competition is not always the perfect candidate for an acquisition. Synergies can also be found by looking into neighboring markets. Finding the right candidate for an acquisition is tricky when there are so many companies to choose from. It can be like trying to find a needle in a haystack.

Our client, a distributor and manufacturer of sports products, was looking to expand their business through acquisition. Having considered some acquisitions in the past, the owners were interested in exploring their current options, but were unsure of where to begin their pursuit.

We began with a strategic process to fully define the motivation for the acquisition, analyzing the company’s industry expertise and experiences. This created a solid understanding of the firm’s financial, operational and manufacturing capabilities that pertained to integrating a separate entity.

After establishing the search criteria and filter for identifying candidates, we performed a national search to identify industries and companies that matched the client’s criteria. Through an iterative process, we refined the list with the owners and key managers to a short list of potential candidates. At that point, we conducted a deep dive of quantitative and qualitative analysis to each of ten candidates and eventually settled in on the top five.

Not only did this process help the company identify who the candidates were, but it also helped set the tone for the discussions during due diligence.