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What to Expect in a Buy-Side Engagement

Acquiring an existing business can be a powerful strategy for rapidly increasing capacity, entering new markets, and expanding your customer base. However, it’s crucial that you choose the right experts to guide you through this process.

At ACT Capital Advisors, we’ve guided business owners through successful buy-side engagements since 1986. Our buy-side engagement process ensures alignment with our client’s unique objectives. We focus on key goals, including defining ideal acquisition targets, conducting thorough evaluations, and negotiating favorable deal terms.

With nearly four decades of experience, we’re equipped to help clients navigate the complexities of the acquisition process efficiently and effectively.

ACT Capital Advisors’ Buy-Side Process:

  1. Acquisition Candidates
    • Target Criteria: We start by understanding your needs and considering factors like geography, industry, market niche, and profitability.
    • Target Sourcing: Our team identifies potential candidates that match your criteria, even if they’re not currently on the market, and contacts those who fit your ideal acquisition profile.
  2. Preliminary Analysis
    • Valuation and Competitive Assessment: We conduct a preliminary valuation to ascertain the target business’s fair market value while considering the industry’s outlook and competitive landscape.
  3. Financial Due Diligence
    • In-Depth Financial Review: Our rigorous analysis verifies the accuracy of the target’s financial information, ensuring a clear picture of its financial health before negotiations commence.
  4. Financial Modeling
    • Projected Financial Performance: We create financial models to determine the likely incremental value created in an acquisition.
  5. Capital Needs
    • Funding Strategy: We assess the capital necessary to fund the acquisition, advising on debt versus equity while exploring seller financing possibilities. We may be able to source any shortfalls from various capital sources.
  6. Expert Negotiation and Deal Closure
    • From initial conversations to closing the deal, we leverage our extensive experience to maintain your strong negotiating position to help you receive optimal deal terms.

Our Approach:

  • Customized Engagements: Whether working with private equity firms, investors, or corporate entities, our tailored engagements align strategies with client objectives.
  • In-depth Market Knowledge: Our deep understanding of market dynamics, competitive positioning, and acquisition strategies enable you to achieve your objectives.
  • Optimal Integration: We negotiate transaction structures for a seamless transition that prioritizes value and tax efficiency while designing the optimal capital structure to integrate newly acquired entities.

Our team’s expertise can help you identify potential risks, employ effective negotiation strategies, and ensure cultural and operational alignment between parties. A buy-side engagement offers an opportunity to expand and strengthen your business.

ACT Capital Advisors’ dedicated team will work diligently to ensure you reach and exceed your acquisition goals. If you’re considering acquiring a business, contact us today to get started.

About ACT Capital Advisors
ACT Capital Advisors is a premier mergers & acquisitions firm representing lower-middle-market companies across all industries. ACT has a 40-year history of deal-making, closing 250+ transactions, and unlocking over $2.5 billion in wealth for its clients. For more information, visit https://actcapitaladvisors.com.

What Our Clients Say
Case Study: System Three Resins, Inc.
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Contact us now if you’re looking to buy or sell a business
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