How The MBO Group Can Help You Acquire a Company
The MBO Group is unique in the investment banking advisory world – we only work with buyers. This focus has allowed us to fine tune our private company acquisition process: from how we target prospects, to how we get entrepreneurs to open up to us and finally to helping craft the right deal.
The majority of private companies that we approach are not “for sale”. But because The MBO Group is seen as a buyer’s advisory firm, private company entrepreneurs take our calls – we get in where others can’t get by the “gatekeeper”. We are seen by private companies as a professional trustworthy firm who they feel comfortable with sharing their highly confidential information.
When you have The MBO Group working with you on an acquisition strategy, it immediately tells private company entrepreneurs that you are a serious buyer and worth talking to. And from these discussions, comes your perfect deal.
Here’s how we can help:
Finding the Right Deal: we’re your Corporate Acquisition Department
Private companies rely on The MBO Group to help to identify, approach and negotiate with potential acquisition targets. Most of these target companies are not officially for sale, but could be. Having The MBO Group as your representative in the market enhances both your credibility with potential targets and their openness to enter into discussions with you and a recognized professional advisory firm whose sole focus is providing advice on how to acquire companies.
The process of identifying a suitable acquisition candidate is very time consuming and can be a huge distraction from running your business. You have to approach dozens of targets and since their not likely officially for sale, you’ll need to spend hours in discussions with them to get them to open up. The MBO Group takes most of this burden off your shoulders and applies a disciplined methodology to coming up with a short list of qualified targets.
Putting the deal together & ensuring that the right deal gets done
Once we’ve identified “live” potential targets, The MBO Group is by your side:
- Helping you to evaluate the target, including
- Analysing its financial performance and future prospects, and,
- Identifying the opportunities (synergies) and potential risks of the acquisition;
- Gaining a deeper understanding of the target's motivation for selling and building a trusting relationship with the target which helps in those critical subsequent negotiations;
- Guiding you on valuation and deal structuring issues and being that “sober second opinion" to ensure that the potential transaction does not jeopardize you in the future, and,
- Probably most importantly, helping craft the best deal for you that strikes that fine balance between the seller’s need for liquidity and getting “full value” with your ability to finance and grow your company without taking on excessive risks.
Our honest, open and professional approach allows us to have those candid and often difficult discussions that can help take the emotion out of the negotiations and facilitate the mutual trust and understanding that result in the “right” deal being done.
Helping you raise the right financing with the right financial partners
It’s not getting a deal done that’s important. It’s getting the right deal done, with the right structure and with the right financing.
The MBO Group works with you to ensure that you have the right blend of financing - banks, subordinated debt, private equity, vendor payments – that will maximize your personal returns while at the same time making sure that you have the appropriate financing in place to grow your company to the next level while minimizing your risks.
As you probably already have a good banking relationship in place, we’ll sit down with you and your banker and review financing options together. Often acquisitions require more capital than your bank wants to lend; we also have knowledge of, and connections with, all the various types of alternative financing sources that support companies growing through acquisitions.
In Their Words
The MBO Group provided our members with excellent insights into opportunities for C-level executives to buy into smaller businesses as part of a transaction where management buys out the owner of a private business or buys a division of a larger company; takes the business to the next level; and then exits generating a handsome return to the shareholders. [read full testimonial]
Phoenix Executive Network Member