Private Equity 4

Private Equity 4

Posted on 05/03/2015 in Uncategorized - 186

CHALLENGE: Selecting a Large Target Acquisition

Seeking an add-on acquisition to dramatically impact earnings growth, a capital company sought help to support the investigation, ranking, pursuit, and due diligence of three potential acquisition targets. The firm was searching for an industry resource with deep knowledge of the desired market space and connections at the senior management and board level with firms prominent in this space. Continuum Advisory Group was selected to meet this challenge.

SOLUTION: Target Investment Criteria ►Target Rating & Ranking ►Target Pursuit

To address this challenge, Continuum Advisory Group worked with the senior management team of the capital company to develop a set of investment criteria for the three potential acquisition targets. Continuum Advisory Group completed the preliminary due diligence then rated and ranked the three firms against the target investment criteria. Investigations included an assessment of the target firms’ management team and board members describing how they may react to an unsolicited offer of acquisition. A summary of all the analysis and perspectives, the details of how each firm rated and ranked against the investment criteria, along with recommendations on pursuit were provided to senior management of the capital company.

RESULTS: Targeted Approach Strategy

After selecting two of the three firms for pursuit, Continuum Advisory Group reached out anonymously to these candidates at the senior management and board level to discuss the potential for merger or acquisition, exploring potential deal structure and sweeteners. Continuum Advisory Group took the feedback to the capital company’s senior management and proposed a series of strategies to approach the highest priority acquisition target.