Mergers Holding has developed an international network of M&A firms around the world, specifically designed for retained M&A buy-side mandates.
Our clients who are usually medium to large companies do usually have internal M&A teams. They only mandate an external M&A advisor, to add more value than their current team, because of their local search capabilities which has more focus on executing internal deals.
The buy side process is generally comprised of the following four phases:
Target identification and engagement
Preliminary due diligence, valuation, and indication of interest
Further due diligence and letter of intent
Final diligence, negotiations, drafting of the definitive purchase agreement, and completion of the transaction
This would entail the qualification of the target’s financial performance as well as the existing management team to determine if it is a good fit.
This typically entails determining a value range based on comparables typical in the specific industry or what the buyer is willing to pay.
This would assess what capital structure works best for the buyer and still satisfies the target’s expectations.
This would entail crafting and presenting the letter of intent on behalf of the buyer. It usually requires a proper explanation of how the enterprise value is calculated and a break down of the capital structure proposed.
A buy side advisor is deeply involved in the due diligence, oftentimes leading it for the buyer. The main responsibility is to verify the various assumptions made during the target assessment and valuation stage.
Work with the other advisors, accountants, lawyers and tax counsel to ensure all aspects of the acquisition are looked after so the transaction closes.