In Acquisition Strategies, Blog

Competition is high, and sourcing deals through traditional channels have become significantly more expensive.

Buyers competing in the M&A auction environment are paying higher multiples under less-than-ideal structures. 

helping-you-buy-a-business-investment-bankerWhen you are looking to grow through acquisition, you can choose one of the three main options. 

  • You can build an internal team that specializes in M&A. 
  • You can go it alone and figure it out along the way. 
  • You can hire a specialist and use as needed. 

There are pros and cons to each choice, which is why successful mergers and acquisitions start by defining an acquisition strategy and conducting a target search. 

Cornerstone experts help you buy a business by focusing on potential M&A candidates while allowing clients to continue their day-to-day business. 

There are two main rules to follow when you’re looking to buy a business. 

You want to leverage what you’re good at and acquire a similar business which is not doing well, and use your business acumen for growth. 

The second rule is to look at your own business’s weaknesses and find a company which is profitable in those areas. You acquire the stronger company to bolster your weaknesses allowing you to grow. 

Do you have questions about business financing? We’ve helped other buyers navigate financing the purchase of their new business. With over 20 years of M&A experience, we can help you think of a variety of options for financing. investment-banker-buy-side-cornerstone

Researching “off-market” businesses one of the ways Cornerstone provides value to a client when they’re considering buying a business. By relying on the two rules of acquisition: leveraging strengths and improving weaknesses, we can help you buy a business to make your company even stronger.

Not all purchases are outright, nor should they be. If the business you’re buying is not second nature to you, consider keeping the seller on as a consultant. It could make the difference between hitting the ground running or crawling. 

At Cornerstone Business Services, we pride ourselves on Honest Conversations and Superior Results.

Purchases don’t happen overnight. Instead of stepping away from your business to navigate the buying process, consider working with a buy-side advisor. You’ll be able to keep your operation running smoothly and acquire a business that fits your criteria. 

Why hire an investment banker to help you buy a business? 

Our Mission is to create positive life-changing events for all the lives we touch. The mission is foundational in our sales approach. help-you-buy-a-business-buy-side

Establish Acquisition Plan- By working with a buy-side advisor, you can create a strategy that fits your “ideal scenario and how to find it,” instead of “find the best thing out there right now and make the most of it.” We work with you to determine your acquisition criteria for your ideal scenario. This saves you time and frustration. 

Conduct Industry Assessment-Through our assessment process we can determine which “not on the market” deals to pursue. This allows us to help you purchase where there is little to no price competition. The assessment also allows you to consider more than one deal at the time. Our team leaves “no stone unturned.”

Develop Screening Criteria-When buyers come to the table; we do an extensive job of vetting sellers before bringing them to our client. Not every seller is a great fit for our buyer’s goals. We help them weed through deals that don’t meet their criteria so they can focus on serious sellers who fit their needs. 

Evaluate, and Select-The evaluation process uses analytics for historical performance and current market trends to evaluate the profitability of the business. This provides you with the most comprehensive information to consider to make the best selection.

Present Purchase Offer-Our team knows the common mistakes to avoid when presenting an offer to the seller. By providing the target with the benefits of the sale, we can move closer to closing the deal. 

Negotiate, and Due Diligence-Buy-side acquisitions take finesse. Through open communication, we find alignment between the target’s goals and your strategic growth plans.  We explain how selling benefits everyone.

 

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