M&A ADVISORY
An advanced buy-side M&A process for optimizing growth
Businesses may decide to buy another company for a variety of reasons, including to achieve their growth objectives. At TAQEEM, our mission is to thoroughly comprehend your growth objectives, explain how a strategic acquisition plan may be implemented, find prospective targets, and then carry out the strategy to close a deal.
Our team has assisted various customers in developing and executing buy-side M&A strategies to meet growth objectives, penetrate new markets, and acquire highly synergistic assets as a trusted partner.
Our goal is to find highly accretive opportunities and unlock the wealth hidden in “off-market” or “not for sale” businesses. While many purchasers are familiar with major company listing platforms, while working with a client, we take a different approach. Rather of competing for the same firms as other buyers, we employ our tried-and-true process for locating companies that aren’t currently for sale, allowing you to focus on what you do best, the client, to engage with the target without having to compete with numerous other buyers.
Our value-added buy-side M&A services imply that we take a holistic approach to aiding our customers in achieving their transaction objectives, which often requires a comprehensive and technology-driven process that includes:
- Developing a thesis for the transaction and the target criteria;
- Evaluating capital needs to fund the transaction and advising on optimal debt/equity mix;
- Generating a high-level business valuation for internal discussions;
- Creating executive summaries, pitch decks, or marketing materials as needed;
- Developing a comprehensive prospect list for outreach;
- Conducting presentations to position the company’s story to potential targets;
- Managing and reporting all communications with potential targets;
- Establishing a virtual data room and overseeing the due di
Strategic Planning
Establish a joint acquisition plan with the client that is aligned with the company’s strategy. Assess the strategic acquisition plan’s management preparedness and make any necessary adjustments.
Assess Financial Readiness
Assess debt and equity financial readiness to execute on targeted transaction types and quantities. Any loan and equity deficiencies should be filled through a variety of financing sources outside of the client’s primary firm and contacts.
Align M&A Criteria
Create an ideal target profile based on the initial strategy and pre-arranged screening questions. Prepare to make changes as needed in response to market feedback, keeping in mind that flexibility may be required.
Research Target Industry
Implement a detailed research plan for global metrics and individual corporate goals in your chosen industry. Build the perfect target profile based on your results for both on- and off-market possibilities.
Target List Building
Build custom target list based on pre-determined strategic profile and general industry analysis and research.
Target Outreach
Direct outreach to target list via phone, email, letter and direct meetings.
Engage Targets
Engage targets in a private setting to prepare them for future management meetings. Choose your target candidates from a pool of willing company sellers.
Letter of Intent (LOI)
Present the target company with an acquisition offer via a Letter of Intent (LOI). Major transaction points, such as value and structure, should be negotiated.
Due Diligence
Using a shared virtual data room, collaborate on advanced due diligence with counsel, investment bankers, and accountants.
Closing
Negotiate the definitive agreement among buyer and seller counsel, working toward a reasonable close.
Target Integration
In line with the initial acquisition strategy prepare for and execute on an M&A integration pathway, bringing target and parent together.
Delivering Preemptive Off-Market Deals
Strategic acquisitions can be tricky when it comes to inorganic growth. When it comes to successful buy-side acquisitions, strategy is crucial. Our approach uses technology and analytics to access companies that aren’t for sale, resulting in higher strategic value and more accretive agreements. When most of the deal flow in privately held companies isn’t readily accessible, identifying significant prospects worth investing in might be difficult. The number of deals that PE companies complete or are even aware of is limited as a result of this difficulty.
Building Accretive Value
We enable private equity firms to expand their investment prospects beyond what restrictive techniques, such as participating in broad auctions, can provide. We look for new portfolio company possibilities as well as additions to existing portfolio companies. We’ve worked in almost every sector and niche. Our approach to identifying investment possibilities is varied. While traditional prospecting methods (such as phone calls) are still effective, our most valuable resource is our professional network (including accounting firms, attorneys, consultants, brokers, sell-side intermediaries and investment bankers). Our network of professionals has come to regard as a valuable resource for providing high-caliber qualified purchasers in a discreet manner. Our network of industry professionals can assist you from start to finish when it comes to capital investment in current and profitable firms. If you’re looking to buy an existing business, please contact us right away.
Buy-Side M&A Fees
Our fee structure is simple and broken into three groups
A regular monthly engagement charge is included in our active buy-side customer engagements. Multiple M&A advisors and professional investment bankers will be directly involved in the fee. As the deal advances through due diligence toward close, engagement fees may increase as the engagement progresses and the duties grow more sophisticated and time-consuming. All engagement payments, on the other hand, are credited and treated as a “draw” against any future success fees due at the time of close.
The majority of our fees are based on performance. That is mainly compensated at the conclusion of a completed acquisition deal. We may be paid various client buy-side fees throughout the course of a longer-term engagement, but only one engagement fee is paid, which is credited against the success of a closing. Typically, our buy-side fees are cheaper than our sell-side fees.
During the engagement, the customer is liable for any pre-approved out-of-pocket expenses and third party expenses. Pre-approved travel, management meeting expenses, and so forth are examples.
How Our Process Delivers Value
- Delivers pre-emptive “not for sale” deals where little or no price competition exists.
- Delivers “not for sale” profitable vs. asset deals i.e. known “for sale”companies – there is a reason they are for sale.
- Creates positive alternatives for investment by having multiple choices for investment at once vs. one deal at a time.
- Uses technology to scale human resources in attracting and nurturing deal flow. Proprietary database opens up deal flow.
- Uses predictive analytics based on past performance and gives trend of what post-close will look like – capable of crunching more deals.
- Delivers better deals and a faster / compressed time to close.
- Utilizes team approach and scalable resources to attracting, finding, quantifying, analyzing and executing deals.
- End result is accretive deal that adds enterprise value on many levels.
Expert Support
When most of the deal flow in privately held companies isn’t readily accessible, identifying significant prospects worth investing in might be difficult. The number of deals that PE companies complete or are even aware of is limited as a result of this difficulty.
We enable private equity firms to expand their investment prospects beyond what restrictive techniques, such as participating in broad auctions, can provide. We look for new portfolio company possibilities as well as additions to existing portfolio companies.
We’ve worked in almost every sector and niche. Our approach to identifying investment possibilities is varied. While traditional prospecting approaches (such as phone calls) are still effective, our most important resource is our professional network (including accounting firms, attorneys, consultants, brokers, sell-side intermediaries and investment bankers).
Our network of exp
An advanced M&A process for selling your business
Entrepreneurial exits can be viewed as a large “harvest” of one’s life’s labor. While the process can be an emotional roller coaster, it can also be a thrilling time as you finish one chapter and begin to think about the next. When it’s time to sell, having the appropriate counsel on your side is important to getting the most out of a firm that took a lifetime to establish.
We assist privately owned middle-market company owners/founders/CEOs with the selling of their firms. We assist our clients optimize value by establishing a rigorous technology-enhanced procedure across the different sectors and verticals we have transacted in. Whether you’re looking to sell to a family member, a partner/management buyout, a strategic/financial acquirer, or as part of a planned exit strategy, our expert advisors will work closely with you to achieve your objectives.
A business divestment should be a well-thought-out and planned process, which is why we invest time up front to truly understand your organization and motivation to sell. We get involved as early as possible in the process so that we can help you strategize and explore your transaction alternatives, whether it’s in 90 days or two years, we’ll be there to help when the time comes.
Our value-added Sell-Side M&A services imply that we take a holistic approach to supporting our customers in achieving their financial objectives, which comprises a thorough and technology-driven process that often includes:
- Strategizing and advising on maximizing business value and market timing;
- Formulating a high-level business valuation for internal discussions;
- Creating executive summaries, pitch decks, or marketing m
Valuation & Initial Engagement
To close a deal successfully, you must first understand the business value and strategic positioning within the relevant market. We collaborate with business owners and their accountants to develop a business valuation based on relevant comparables and industry multiples that are most appropriate for your industry niche. Following that, we talk about target values depending on the least and most likely M&A situations. Initial engagements may entail mock due diligence and the advisor’s evaluation of the company. The company and its shareholders will also conduct extensive due diligence and reference checks on the transaction’s representing agents to ensure that their business is properly represented from start to finish.
Offering Memo & Deal Positioning
Once the client has engaged us for M&A consulting, we work directly with business sellers to formulate what is often referred to as the “Picthbook,” “the book,” “Confidential Marketing Memorandum (CMM)” or “Confidential Information Memorandum (CIM).” The creation of the book is a crucial component in the deal-making process as it represents the most comprehensive description of all the business has to offer a potential buyer. It should include everything from employees to financials to future opportunities for growth and expansion. Your Confidential Offering Memo is the business plan of your business exit. It is what investors in your company as a “going concern” will want to see before they will even consider investing. It provides all the relevant operational, marketing and financial information about your business. It will include information on assets, including tangible and intangible property, liabilities, cash flows, major customers, key employees, general market analysis and trends and reasons for selling. Drafting an offering memo early is also helpful because in the end, it may just require a few simple tweaks so as to conform to the changes in the business. When it comes time to prepare to sell your business by drafting a marketing memorandum, give us a call.
Buyer Selection & Outreach
Rather than plastering a “company for sale” sign all over the place, we take two critical actions at this point in the process. First, we create a short list of potential strategic acquirers–those who are willing to pay the most in a merger and acquisition situation. We mix the strategic short list with a larger group of financial investors. The seller will receive this list after it has been authorized by all shareholders. Once this list has been cleared and “the book” has been prepared, the company will be “blind” sold to potential strategic and financial buyers. As a result, the seller’s confidentiality is preserved, and the business’s existing and future operations are not interrupted as a result of the attempted sale. The majority of business purchasers can be divided into two categories: financial buyers and strategic buyers. Financial purchasers are just interested in the figures. They’re only concerned with profits (ROE, ROA, etc.). All they want is for the money they infuse to be used to bring back additional money. They aren’t as concerned about strategic issues as we are. A strategic buyer, on the other hand, is more motivated to purchase the company. Most strategic purchasers are willing to pay more, especially if the seller and the acquirer have crucial synergies. After that, expert negotiations take place after direct confidential outreach.
Negotiation & Value Enhancement
Expert negotiations are the key sticking point between advisors that get a deal done and those that exceed expectations in M&A. Our process includes bringing multiple buyers to the table in a value-enhancing auction scenario where the buyer who matches the sellers criteria for fit and price ultimately wins the deal. This can be a delicate process and requires the support of experienced negotiators with the ability to enhance value when it’s needed most: in the final sale of the company.
Due Diligence & Closing
We work fast to ensure due diligence and deal closure are completed immediately after we select the winner of the strategic auction for the company–ideally between 30 and 90 days after all parties to the deal have signed a Letter of Intent for acquisition.
Delivering Enhanced Value
Selling a business is frequently a strategic decision. Working with numerous stakeholders to verify the business is genuinely ready to be sold is a must. The selling of a firm is, and should be, a well-planned process in most situations. It should include the aid of insurance reps, attorneys, and tax and estate planners in addition to M&A advisors, broker dealers, and real estate brokers. In essence, the sale of your company is a project management process. Start early in the process, speaking with all essential parties, including your investment banker, to ensure your success. By starting the process early, you can ensure that you are prepared in the event that a buyer arrives early, but you can also ensure that you have the correct moment when the market factors conspire to create a perfect storm. Most essential, there are a few key aspects of closing a business that must be ironed out before you begin.
Sell-Side M&A Fees
We provide clients with a simple fee-structure for selling their business
A regular monthly engagement charge is included in our active buy-side customer engagements. Multiple M&A advisors and professional investment bankers will be directly involved in the fee. As the deal advances through due diligence toward close, engagement fees may increase as the engagement progresses and the duties grow more sophisticated and time-consuming. All engagement payments, on the other hand, are credited and treated as a “draw” against any future success fees due at the time of close.
The majority of our fees are based on performance. That is mainly compensated at the conclusion of a completed acquisition deal. We may be paid various client buy-side fees throughout the course of a longer-term engagement, but only one engagement fee is paid, which is credited against the success of a closing. Typically, our buy-side fees are cheaper than our sell-side fees.
During the engagement, the customer is liable for any pre-approved out-of-pocket expenses and third party expenses. Pre-approved travel, management meeting expenses, and so forth are examples.
How Our Process Delivers Value
- When it's time to sell your company's assets, allowing you to focus on other things, there are a slew of details to consider that necessitate the assistance of a skilled specialist. Starting the procedure can be time-consuming and tedious, especially if you want to get the best potential return. Many privately held businesses have a special affinity with their owners and founders. Those who have assisted them in becoming what they are today are sometimes unaware of the emotional components of closing the sale. While passing the business on to the next generation can be a difficult and emotional process, it is necessary, we work with you to ensure you are able to make the transition as smooth as possible.
- In addition, there are often aspects to selling your business which could make the deal a bit more complicated. For instance, sometimes the deal could involve real estate or another type of account.
- We are a middle-market financial advisory boutique that specializes in providing strategic advice and transaction services to business owners. We locate the perfect buyer for healthy, rapidly growing companies wanting a partner to offer size, whether you're looking for great results in a succession planning exit or finding strategic buyers for healthy, quickly developing companies seeking a partner to provide scale.
- We provide presentation materials that accurately reflect the value of the item you've developed. For the strategic buyers we target, we find and convey the value creation possibilities. Then we return to the fundamentals. We're looking for a lot of strategic and financial buyers. As the process progresses, we have numerous bidders competing for our business. This buyer rivalry results in the highest and greatest value available on the market.
Expert M&A Support
