Expansion through acquisition...
Many companies view acquisition as an important component to growing and expanding through vertical or horizontal integration. CEP advises and guides companies through this process so that management can increase their return on investment and find target companies that provide maximum growth potential.
Through targeted acquisitions, buyers will avoid auction-style transactions and will be able to engage selling companies that may not have previously considered acquisition, yielding a lower negotiated purchase price. CEPís process demonstrates the advantage we give buyers in their expansion through acquisition.
- Strategic Objective: A thorough discussion of the clientís strategic objectives will enable CEP to assess and make recommendations as to which opportunities are most likely to deliver the desired business line, investment and profitability targets. Objectives identified include business description, product/service mix, adjusted historical and projected financial models, management and key employee information and preferred deal structure.
- Transaction Initiation: After developing an acquisition plan, CEP will present the client with a list of seller-candidates who, based on our industry knowledge and relationships, might be welcome to an acquisition overture and meet our clientís strategic objectives. With our clientís consent, we then initiate careful and prudent conversations with one or more of the target companies.
- Non-initiated Transactions: In the case of companies that are being actively marketed by another intermediary, CEP will be retained by the client to exclusively represent and advise them during an acquisition. While not initiating the transaction, CEP still brings an abundance of transaction experience to provide a cordial negotiating environment, increasing the activity of actual client communication.
- Due Diligence: CEP will value and examine all assets, liabilities, contracts, and areas of operations of the target company. We work in concert with our client's internal and external due diligence teams providing value-added, on-site and remote due diligence support and analysis. Following a thorough valuation of the target and examination of all relevant aspects of the sellerís operations, a comprehensive and detailed review of all findings is compiled and presented to our client.
- Negotiations and Closing: CEPís principals have extensive experience negotiating purchase and sale agreements and are proficient at structuring mutually acceptable terms to successfully complete the transaction. The prime objective is to maximize our clientís returns and to create a deal structure that suits their stated corporate objectives.