Silver Bullets for a Successful Acquisition
By The MBO Group | January 16, 2014
Silver bullets acted as a calling card for The Lone Ranger in his adventures. The masked man decided to use bullets forged from the precious metal as a symbol of justice, law and order, and to remind himself and others that life, like silver, has value and is not to be wasted or thrown away.
At The MBO Group, our silver bullets to our acquisition hungry clients are the two most important things they value – their time and their money (we save them both!!)
And this is how we do it:
Giving You More Options: You’ve decided to kick start your growth through acquisitions and you probably have a few possible candidates in mind. But to find your “perfect deal” you'll need to see what’s really out there: the trick here is that most of these companies are not officially for sale or on the market. That doesn’t mean that they aren’t prepared to sell – but you won’t know unless you ask. Hire a professional advisory team. You can’t afford to take your eye off running your business or your foot off the pedal. Acquisitions take a lot of time and energy so you have to ask yourself if you have the time during your busy day to devote to an acquisition.
Our silver bullet is getting you an exclusive list of “live” prospects, most of whom are not yet on the market.
Avoiding the Crazy Price Dance: The biggest waste of time on an acquisition is trying to get the potential seller to move from a crazy high asking price. They worked their whole lives creating their successful little company and want top dollar for their life’s work. But many deals fall apart quickly because the buyer and the seller spend too much time focusing on how much cash the seller gets at closing and not enough time in exploring how a “win – win” deal could be created. And often these “win-win” deals result in the seller getting more than they had asked for.
Our silver bullet is bringing to the table years of experience in crafting “win-win” deals with private company entrepreneurs in a wide variety of industries. This is an art and not a science and one that we excel in.
Avoiding Double Duty: Newbies to the acquisition business think they can run an existing business plus spend the hundreds of hours needed to identify, engage and consummate the acquisition of another business. Deal savvy professionals know that this process can often take a year or longer. And often it should because no matter how anxious you are to get the deal done, the time spent in finding your “perfect deal” is invaluable when you consider the headaches and heartaches of a bad acquisition.
Our silver bullet is to provide clients with a dedicated team to do the “heavy lifting” so our clients can focus on the big picture of the acquisition and not get caught up in the 1,001 details and neglect their existing business.
Saving You Financial Headaches: It could take more than one financial institution to put the right financial package together which has to tie into the financial offer you make to the seller. The terms have to make sense both in getting the deal done and for running your business going forward, or you could find yourself in financial difficulty very quickly. Often this requires speaking with other banks or possibly other sources of financing such as providers of subordinated debt or private equity.
Our silver bullet is to ensure that you get the right financial partners financing the “right” structured deal both to get the deal done, and as importantly, to help grow your business to the next level.
Avoiding Hiccups: More than 50% of acquisitions result in unexpected hiccups, including the loss of key customers and/or failure to achieve expected synergies. That doesn’t mean you bought a bad company – stuff happens. And while you don’t have a crystal ball to tell your future, you can ensure that you’ve got the right financing in place so you’ll survive those inevitable bumps in the road.
Our silver bullet is making sure that your financial structure gives you the cushion you need to accommodate these annoying hiccups once the deal closes.
When looking at an acquisition, you need all the silver bullets you can muster or you may land up being a lone ranger without a calling card!
Let The MBO Group guide you through a successful acquisition
With offices in Toronto, Canada & Sydney, Australia
In Their Words
The MBO Group seems to have a unique ability to uncover interesting and worthwhile opportunities in the Canadian private company market. I have had the benefit of working with them in a variety of situations. They have always been able to capture the essence of what makes a project assignment or deal work in a very strategic way that others can embrace. With a rare ability to communicate clarity they are able to efficiently bring individuals as well as groups to understand what it takes to achieve success.
FCA, Former CEO & President, Marsulex Inc.