We support you in all matters relating to company acquisitions and buy-and-build strategies

We will find the best target company for you!

Whether as part of a targeted buy-and-build strategy, to expand existing business areas or to exploit synergies and economies of scale – the acquisition of a company can offer a variety of strategic advantages. We conduct extensive research to identify suitable target companies for you and approach them confidentially. We support you in the selection of the best targets, in the valuation and during the review and negotiation process.

The phases of acquiring a company

Kick-off and research

We work with you to define the profile of the ideal target. The most important parameters must be defined in sufficient detail in order to conduct an effective search and identify suitable candidates. On the other hand, narrowing it down too much will (perhaps unnecessarily) reduce the field of suitable candidates. With this in mind, we begin a comprehensive search to identify potential targets. We use specialized databases, conduct expert interviews and make use of our large network. As a result, you receive a list of potential targets (longlist), which we discuss and prioritize together (shortlist). Depending on the search assignment, we will have already gathered important information about the companies in question to help you make your decision.

Approach

We discreetly approach the decision-makers in the target company and clarify their willingness in principle to sell the company. In this first meeting, we also sound out the status of the target (initial financial information, customer relationships, strategy) to ensure the best possible fit with your search profile.
Interesting companies are often courted from many sides. On the one hand, we try to identify target companies that are still just below the radar screen of other interested parties. On the other hand, we work with you to consider which arguments play a role for the target company and how management can best be persuaded to sell to you. If there is mutual interest, we coordinate personal meetings and presentations.

Negotiation

We support you in determining a valuation of the target company and in negotiating the most important economic cornerstones of a takeover. As corporate finance experts, we have gained experience in many processes, which we incorporate into the structuring and negotiation. This enables us to make proposals for structuring the transaction in such a way that the objectives of the buyer and seller overlap as much as possible.

Due Diligence

Depending on the circumstances of our clients and their expectations, we oversee the due diligence process and provide further support as required. In some cases, the due diligence process leads to new findings that need to be evaluated and incorporated into a modified assessment of the target company.
On the other hand, due diligence leads to a high workload for the target company and can result in a lack of understanding or disgruntlement. We counteract this promptly and manage the relationship with the target company. We explain the necessity of certain steps and keep the contact persons informed and motivated.

Contract

We feel responsible for the process until agreement is reached on the final purchase agreement and the transaction is completed. In the negotiations leading to a successful takeover, we remove any obstacles and act as a link between the two future partners.

FAQ

How does a company acquisition work?

When acquiring a company, the first step is to define the profile of the ideal target company. In the next step, potential targets are identified, analyzed and discreetly approached following a joint discussion. During the approach, the target company’s willingness to sell and its strategic suitability are established. If there is mutual interest, further information and documents are exchanged following the signing of a non-disclosure agreement. After more intensive discussions and negotiations, the cornerstones of the transaction is summarized in a term sheet. The risk assessment (due diligence) of the target company then takes place. If no unforeseen risks are identified, the final contract is negotiated.

What types of company acquisitions are there?

In the case of company acquisitions, a distinction is essentially made between complete takeovers and majority or minority takeovers, as well as between share deals and asset deals. When taking over an ongoing and healthy business, buyer and seller will typically seek to implement a share deal. In this case, the buyer takes over all shares in the company to be sold. This has the advantage that current contracts, e.g. with customers and employees, do not have to be changed. In an asset deal, the buyer will not acquire any shares in the company, but all or selected assets, rights and contracts are transferred to him. This reduces the risk for the buyer of taking on unidentifiable liabilities or legacy burdens. However, contracts with third parties must be adapted accordingly.

What problems can arise when buying a company?

Differences in the assessment of the status and potential of a business and the resulting differences in purchase price expectations are among the most common reasons for the failure of a transaction. The causes can be different perspectives and information asymmetries between buyer and seller. As Quantum Partners, we moderate the discussion on such issues and will identify possible solutions and compromises that take into account the respective interests of the parties.

How does due diligence work when acquiring a company?

At an advanced stage of the transaction process, usually after the letter of intent (LOI) has been signed, the buyer will conduct a due diligence. In this risk analysis, the buyer examines the target company in detail and is supported by appropriate experts. The scope and length of the due diligence typically depends on the size and complexity of the target company. The main areas of investigation include: Commercial, Financial, Legal, Tax and Tech Due Diligence. If risks (so-called red flags) are identified at the target company during the due diligence process, this can have an impact on the company valuation and the further course of negotiations. In such cases, an M&A advisor should point out possible solutions for the changed situation.

Contact us!

Call us for a confidential exchange of ideas.
We would be happy to discuss our approach, our industry expertise and references with you.
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