Growing by acquiring a competitor is a common tactic for companies looking to quickly grab market share through a consolidation. However, exploring an acquisition opportunity with a rival can be awkward as neither party wants to give the other a competitive advantage by sharing company secrets. Typically, a rival, especially in a not-for-sale situation will …
Tag: third party advisor
4 Reasons Why You Need an M&A Advisor
You can do an acquisition on your own, but there are many advantages to having an experienced third-party advisor. Should you hire an advisor for mergers and acquisitions? Many companies execute acquisitions on their own and are successful. In fact, there are entire corporate development divisions whose primary focus is to pursue mergers and acquisitions …
What Role Does an M&A Advisor Play in Negotiations?
During negotiations, a third-party M&A advisor acts as a buffer between buyer and seller. As you can imagine, negotiations can become quite intense and emotional on both sides and we want to do everything in our power to preserve a harmonious relationship between both parties. Having a good working relationship with the seller is important, …
M&A: Third Party or Do-It-Yourself?
You do not need an M&A advisor to pursue acquisitions. You might think I’m crazy for saying this, after all, we are M&A advisors, but the truth is you can pursue acquisitions on your own. In fact, for those of you who are so inclined to take the do-it-yourself approach, I lay out a step-by-step …
Capstone Guides Acquisition of VDI by Japan’s Lintec USA
Capstone Strategic announced today that Lintec USA Holding, Inc. has acquired VDI, LLC (DBA Vacuum Depositing). The acquisition brings together complementary technology and broad research and development capabilities that will allow for expansion in the industrial films market. Capstone Strategic, Inc. (Capstone) announced today that Lintec USA Holding, Inc. (Lintec USA) has acquired VDI, LLC (VDI). …
Do You Really Understand the Seller?
We recently had a situation where our client, the buyer, was pursuing the acquisition of one of their suppliers. The buyer expected the process to be relatively easy because he and the seller had known each other for years. However, when he tried to speak to the owner about possibly selling his company, he was …
Is Everyone on the Same Page? Gaining Clarity on Your Company’s Vision for Growth
“We have a strong vision and a clear plan for growing the company in the future,” Sarah, the CEO, told me with complete confidence during a recent strategy session. Her CFO disagreed: “We have no vision.” Various members of her executive team shared similar sentiments privately with my team and me. Many expressed anxiety; they …
Keeping Strategy in Sight When Pursuing Acquisitions
Deferring to advisors during the M&A process can be detrimental to a company, as evidenced by the back and forth over Valeant Pharmaceuticals’ unsolicited $53 billion bid to acquire Allergan, the maker of Botox. The maneuvering over the past several months has become heated and off-track. Or as the Deal Professor column puts it: “Some …
5 Approaches to Risks Identified Through Due Diligence
During due diligence, you may uncover deal-changing issues, or what I like to call “red bucket items.” Identifying these risks doesn’t necessarily mean you walk away from a deal, but you will need to negotiate new terms with the seller. Among the ways to protect yourself as the buyer when you find major issues: 1. …
Do You Need a M&A Advisor?
From my perspective of largely successful acquisitions, most acquisitions end in failure because they are missing a third-party advisor. A third-party advisor can play an irreplaceable role on your acquisition team as an ‘‘outside insider’’ who can unearth hidden intelligence, resolve stubborn conflicts, help cooler heads prevail, and maintain a strategic perspective from beginning to …
