Buying a company: the acquisition process
Acquiring a company is generally a once-in-a-lifetime event, so it's crucial to get it right. The acquisition process is complex, and engaging a skilled advisor is highly recommended. With over 25 years of experience in mergers and acquisitions, we are the specialists who ensure a smooth and successful company acquisition for you.
Step 1: Introduction and preparation
At Marktlink, we believe it's essential to establish a good rapport before embarking on the acquisition process together. Therefore, we start with a comprehensive introduction, discussing various aspects in preparation. Throughout the entire process, we take on the roles of initiator, guide, and guardian — from initial exploration to the transfer of the shares. In our first meeting, we discuss your motivations for the purchase, determine the strategy, and create a target profile.
First impressions matter. We clarify what we can do for you and how we navigate this journey together.
Why do you want to acquire a company? This crucial question needs consideration before proceeding with the purchase.
We decide on the method of acquisition, such as a management buy-in or a strategic acquisition.
Drawing up a target profile reveals your preferences and the criteria a potential target company should meet. This forms the foundation for further progress.
Step 2: Searching and approaching candidates
After creating the profile, it's time to search for potential acquisition targets to approach, utilising our extensive database and reviewing businesses that are currently for sale.
Together, we search for companies that align with your goals, generating a longlist with diverse options for you to explore.
You select the companies that interest you most, transforming the longlist into a shortlist.
Once the shortlist is ready, it's our task to approach these companies. We craft a compelling presentation, highlighting why you, as the buyer, are a good fit and outlining your future plans for the company.
Determining the acquisition strategy is an important step in acquiring a business. Which strategy is right for you?
We conduct a thorough analysis of the companies on the shortlist to determine the best fit. Based on this analysis, we guide you in selecting the most suitable partner and provide advice on:
This includes the financial situation, competitive positioning, and workforce.
Understanding the industry in which the company operates, especially if it's unfamiliar to you.
Assessing the company's value to ensure a fair purchase price.
Considering technological developments, market trends, and growth potential.
Examining the company's size, workforce, and structure.
Estimating the required investment and exploring financing options, including personal funds, loans, or collaboration with an investor.
The negotiation phase is critical as it involves reaching agreements between you and the selling party. Documenting everything is crucial.
We facilitate meetings between you and the selling party to begin negotiations, covering topics like the purchase price, workforce, the future of the company, and transaction structure.
All agreements are documented in a letter of intent,. It outlines commitments regarding confidentiality, non-competition, and the seller's potential role post-acquisition.
We initiate an extensive due diligence to ensure the company has its legal and financial affairs in order.
"The deal team at Marktlink mapped out the market for us, after which we engaged in conversations with potential companies."- Jesse Mostert, PLNTS
Step 5: Securing financing
Whether you plan to use personal funds, secure a bank loan, or involve an investor, we provide advice and assistance in the subsequent steps.
Step 6: closing and transfer
If the due diligence results are positive, we draft the final purchase agreement and conclude the acquisition.
The official purchase agreement is signed, marking the official completion of the transaction.
Shares are transferred, and key stakeholders are informed about the acquisition. Finally, it's time to toast to a bright future for the company and for you.
Navigate the Acquisition Process with a Specialist
The numerous steps involved make acquiring a company a highly complex process. We take care of outlining the process and guide you through it. Our role will be factual (drafting the company analysis and financing application, conducting negotiations, drafting the letter of intent), mediating (bringing the buyer and seller together), protecting your interests (due diligence) and supporting you (during the final transfer). This way, we ensure a smooth acquisition process with a successful outcome. We aim to take as much work of your hands as possible while keeping you involved every step of the way.
Contact us now for more information.