Acquisitions as a strategy typically follow two paths: financial (acquiring customers, markets and revenue) and strategic (acquiring expertise, intellectual capital, new capabilities).
We bring highly experienced executives with deep experience in all areas of acquisitions, mergers as well as successful exits.
Our experienced partners can drive results ranging from creating an acquisition candidate targeting program, due diligence process leadership, financial and valuation analysis, deal negotiations, integration planning and execution, as well as all areas of planning and executing a successful exit of an entire business or component of a business.
In addition to strategic considerations, TechCXO has assisted in more than $5B of acquisitions, capital raises and successful exits. We perform a variety of transaction support services. These include
- Financial due diligence – A key step in avoiding any last minute surprises that could derail a transaction.
- Transaction readiness – Prepare to present the full value of your company by solving GAAP, Working Capital and Quality of Earnings issues preemptively.
- Mergers, Acquisitions & Exits – Before deciding on any M&A transaction, it would be best to understand all the dynamics and whatever issues that may arise throughout the process. These include negotiating price, capital requirements, and customer profitability questions.
While there are not pre-prescribed stages involved in M&A transactions, stages can typically occur in the following sequence.
Stage 1: Pre-acquisition review
Stage 2: Selecting targets
Stage 3: Assessment of the value of the target
Stage 4: Conduct proper negotiations with the target
Stage 5: Integration
Consolidations, or the combining of two entities to form one new entity, represent a strategic management perspective. Reasons for consolidations include scaling an organization, increasing its scope of services and customers and/or realizing economies of scale or straight cost and efficiency savings by eliminating redundancies.
Consolidation can happen in entire industries as well, where megadeals and widespread consolidation plays dominate an industry, such as telecommunications, computer hardware, aerospace/defense and others that may be facing a contracting or rapidly shifting market.
Exits take many forms including the unfriendly (liquidations, hostile takeover) and successful/friendly (IPOs, management buyout or friendly strategic buyer).
We work within executive teams, boards of directors, as well as with financial sponsors, to assist in driving successful acquisitions and exits.
Our approach allows great flexibility where our expert executives can be the front-line point person on any transaction, a key member of the team, or a behind-the-scenes coach to the companies’ executive team.
We also blend in with other outside parties such as law firms, accounting firms, banks, etc. to provide a holistic approach to any situation.