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 prospect identification, 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 as a professional trustworthy firm and someone who entrepreneurs 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 serious and worth talking to. And from these discussions, comes your perfect deal.
Here's how we can help:
Developing your Search Strategy: Finding the Right Deal
There are an increasing number of individuals looking to acquire a “platform” company – one that they can acquire and use as an industry consolidator to acquire other companies in their sector. But the search process can be a daunting task. The MBO Group will help you create a “search” strategy that will significantly enhance the likelihood of your finding your ideal platform.
Private companies rely on The MBO Group to help in identifying, approaching and negotiating with potential acquisition targets. Most target companies that we identify as potential acquisitions are not for officially for sale, but could be. Having The MBO Group as your representative in the market enhances both your credibility with potential targets and the openness of these companies to enter into discussions with a recognized professional advisory firm whose sole focus is providing advice on how to acquire companies.
Often you need to approach several hundred companies before you can find the right fit, most of who are not actively looking to be sold. But this is The MBO Groups' strength - all we do is help buy companies, so we're experts at doing this successfully.
Putting the Deal Together: Ensuring the right deal gets done
Once we've identified “live” potential targets, The MBO Group is by your side:
- Evaluating the target company, including
- Analysing its financial performance and future prospects
- Identifying the opportunities and potential risks of this acquisition
- Gaining a deeper understanding of the target's motivation for selling and building a trusting relationship with the target which will help in those critical subsequent negotiations;
- Guiding you on valuation and deal structuring issues, and being that “sober” second opinion to ensure that the end deal does not jeopardize your future strategy, 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 return while at the same time making sure that you have the appropriate financing to grow your company to the next level while minimizing your risks.
Often acquisitions require more capital than banks want to lend; we also have knowledge of, and connections with, all the various types of alternative financing that support talented executives who want to acquire platform companies and grow them 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