Company acquisitions
We find the right target company for you!
If you are looking for potential acquisition targets, we identify suitable companies and contact them discretely. We support you in selecting the best target, in evaluating the company, conducting due diligence and negotiating key terms.
The acquisition process
-
Kick-off and research
We jointly define the profile of the ideal target company for your acquisition strategy. Specific technological competences, the customer portfolio and a specific regional focus play an important role for most of our clients. Often, a certain turnover category or company size is defined.
On this basis, we start an extensive research to identify possible targets. To do this, we use special databases, conduct expert interviews and leverage our large network.
As a result, you will receive a list of potential targets that we jointly discuss and prioritize. Depending on the specific assignment, the list may already encompass key company information to support your decision-making.
-
Approach
We discreetly address the decision-makers at the target companies and verify the basic willingness to discuss a sale of the company. In this first conversation, we also clarify outstanding questions and gather additional information to ensure the best possible fit with your search profile.
Interesting targets are often being approached by many potential acquirers. On one side we try to find target companies that are still under the radar screen of other interested parties. On the other side, we consider the specifics of the target company and develop appealing arguments to convince the management.
-
Negotiation
Once we have confirmed that there is mutual interest, we organize and coordinate face-to-face meetings and presentations. Furthermore, we support you in determining a fair valuation of the target company and in negotiating the key economic terms of a takeover. Based on our experience, we can suggest a transaction structure that brings buyer and seller in alignment.
-
Due Diligence
Depending on the particular circumstances and on our client’s preferences, we supervise the due diligence process and provide further support as required. In some cases, the due diligence generates new findings that must be evaluated and that may impact the assessment of the target company.
It is important to remember, that a due diligence typically generates siginificant additional workload for the management of the target company, which might lead to misunderstandings or resentment. We promptly address this issues and manage the relationship with the target company. We explain the necessity of certain steps and keep the key persons informed and motivated.
-
Signing & Closing
We feel responsible for the process until the final purchase agreement is signed and the transaction is completed. In the negotiations leading up to a closing of the acquisition, we clear out possible obstacles and act as a bridge between the two future partners.
If you consider to do an acquisition within the German speaking countries, call us for a confidential exchange of ideas. We look forward to discussing our approach, our industry expertise and references for our work.
Dr. Andreas Brinkrolf
Managing Partner
brinkrolf@quantum-partners.de
+49 89 414144 355
FAQ
When acquiring a company, the first step is to define the profile of the ideal target company (“target”). In the next step, potential targets are identified, analyzed and discreetly approached after joint discussion. During the approach, the target company’s willingness to sell and its strategic suitability are determined. If there is mutual interest, further information and documents are exchanged after signing a non-disclosure agreement. After more intensive discussions and negotiations, all key data of the transaction are recorded in a so-called “term sheet”. Subsequently, the due diligence of the target company takes place. If no unforeseen risks are identified, there is nothing more to prevent the closing of the transaction or the signing of the contract.
In the case of corporate acquisitions, a distinction is made between complete takeovers and majority or minority takeovers, and between share deals and asset deals. In the case of a share deal, the buyer takes over (all) shares in the company to be sold. This has the advantage that ongoing contracts are transferred, e.g. with customers and employees. In the case of an asset deal, the buyer does not take over any company shares, but all or selected assets, rights, etc. that are necessary for the operation of the company will be transferred to him. This reduces the risk for the buyer to take over unidentifiable liabilities or legacy issues.
Different purchase price expectations and the form of the purchase agreement are among the most common reasons for the failure of a transaction. Causes can be conflicts of interest and information asymmetries between buyer and seller. To avoid this, Quantum Partners moderates when problems arise and works out the respective interests to enable both parties to negotiate as smoothly as possible.
In an advanced transaction process, usually after the Letter of Intent (LOI) has been concluded, the buyer side requires due diligence. In this risk investigation, the buyer examines the target company thoroughly and is supported by appropriate experts. The scope and length of a due diligence depends in particular 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 (“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.