Acquisitions / Buying A Business

Growth businesses could find acquisitions a valuable route to create value by increasing scale, technological leapfrog, and key manager recruitment. These present opportunities to create value for the acquirer, with the resulting enlarged business better positioned to ensure sustained competitive advantage. Buying a business can also be expensive if it doesn't work out - so it pays to minimise the risks.

vfdnet provides risk reducing services as follows:

Acquisition search - help finding your ideal target business
Commercial due diligence - identify the key characteristics which will drive profit in your hands
Detailed financial projections - for existing, target business and new enlarged business
Strategy presentations to potential funders - Bank, VCs or other equity investment
Identify risk factors, determine specialist due diligence required
Project manage specialist due diligence
Project manage commercial negotiations from 'heads of terms' to final contract
Post acquisition integration of new subsidiary

The benefits are considerable:

Avoid poor deals
Understand the target profit drivers to help you manage
Projections which can help gain funder backing
Use due diligence specialists rather than your usual accountants
vfdnet project management allows you to keep focussed on the core business when you need it to perform
Use due diligence for best commercial negotiation
Additional project resource to enable proper integration of newly acquired business

vfdnet Finance Directors have strong experience of buying businesses as shown by our transactions. Contact us to discuss your needs.

Case Study

The client, a business-to-business service company, had established a geographical acquisition policy and was prepared to issue equity to raise the necessary funds for the acquisitions. We began by reviewing the business, advising on how to turn around the existing business, drawing up a detailed financial business plan and presenting the strategy and financial plan to potential venture capital backers. Presentations were given to ten venture capital funds that were subsequently short listed to two prior to final selection. Following detailed investor due diligence, and subsequent successful negotiation, the company completed the three acquisitions and the £6m fund-raising all on the allotted day.

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