One of the ways to grow your business is to ensure its dynamic acceleration through acquisitions. Behind any decision to buy a company, there is usually a need to achieve either a synergy effect or a pre-defined financial result (specific return on investment). What we offer is comprehensive support in the process of acquiring a company or an organised part of an enterprise aimed at maximising the transaction value and reducing any potential risks.
- when it is a good idea to think about acquisition,
- how the acquisition process works,
- how you can benefit from working with RSM Poland.
The decision to acquire another business may result from different reasons:
- planned dynamic development, resulting from the adopted strategy,
- the opportunity to conclude a transaction, resulting e.g. from the market or industry situation,
- initiation of the process by the seller or its advisor.
No matter the reason you are planning to acquire a company, knowing the rules of the acquisition process and what its participants do will ensure smooth progress over the course of your transaction and be decisive for the ultimate success of the acquisition.
Our experience covers consultancy at all stages of the buy-side process. We effectively support companies that want the process to be handled end-to-end, as well as those buyers who have already defined their purchase criteria, selected acquisition targets or held preliminary negotiations with the seller. Regardless of the moment we step in (to do the entire or just part of the work on a transaction), we are able to do what it takes in a given situation, thus effectively supporting the buyers.
Stages of acquisition
End-to-end handling of the acquisition process involves business, legal and tax advisory, and is usually divided into the following stages:
The acquisition of another company is a complicated process, and the key to its success is to come up with the right strategy, define parameters that the acquisition target should meet, plan a proper transaction structure and take the overall market situation (time to market) into account.
Find potential targets
An in-depth market analysis of entities the buyer might be interested in helps identify potential acquisition targets quickly and effectively. To do that, we select appropriate entities and prepare a list of targets on the basis of parameters agreed upon with the buyer. We rely on our own contacts, databases and our large international network of RSM offices.
Contact potential targets
We check if pre-selected entities are interested and willing to conduct a transaction. The activities on our part are in compliance with all prior arrangements made with the buyer, including confidentiality.
Estimate target value
The transaction price is one of the most important elements of the entire process that is going to decide on the final investment result. We prepare company valuations based on many years of practice and in line with the applied and accepted standards of business valuation.
Pre-negotiations and Letter of Intent
We hold preliminary talks with potential targets, take part in preparing a Letter of Intent and complete a number of other required elements:
Due diligence: we conduct a study resulting in a report with the information about the business, financial and tax situation of the target company. The main goal of due diligence is to identify potential risks and how they may affect the target’s financial performance. Conclusions from the due diligence may have a material impact on the suggested acquisition price or transaction progress.
Negotiations of acquisition terms and conditions: the future acquisition agreement will include a number of provisions and obligations, including those related to the conditions precedent and potential indemnities; therefore, it is important for this agreement to secure the buyer’s position properly. We ensure that the parties involved understand the transaction terms and conditions, choose the best transaction structure along with a payment model, and define any conditions precedent.
Final financing strategy: we help arrange the best conditions for transaction financing and offer support in negotiations with external financing institutions.
We support the buyers in their final negotiations, coordinate and attend the meeting where the final transfer of the ownership of the business takes place.
The acquisition process does not end once you have signed the contract transferring the ownership of the target business. We also support the buyers in the process of integrating the newly acquired business.
- We structure the acquisition process, coming up with the right strategy and selecting potential acquisition targets.
- We ensure security of sensitive data and confidentiality of the entire transaction.
- We relieve the buyers, allowing them to focus on the operations during the acquisition process.
- We offer active support in the negotiation process, ensuring that potential risks are minimised.
- We empower you to reach targets from all over the world, owing to the global reach of the RSM network.