GROWING VALUE THROUGH BUSINESS ACQUISITIONS

WE’RE MORE THAN JUST YOUR BROKER – WE’RE YOUR PARTNER

A well-structured and well-timed business acquisition can offer multiple benefits to the business and its owners, including:

Scale: greater scale not only brings potential cost savings and higher profits, it can also lead to greater market power, increasing your ability to capture organic growth, negotiate effectively with suppliers and win larger deals.

Diversification: more diversified revenue sources help reduce risk and create a more sustainable business.

Competitive Edges: a strategic acquisition can help you access new intellectual property, technology and people, giving you an edge over competitors.

Recruitment and Retention: a larger business with a greater variety of roles and development opportunities can help you recruit and retain talented staff.

As a result, the right strategy can multiply overall enterprise value. For business owners, having a larger business with greater market power will generally be reflected in higher valuation multiples on exit, increasing the value of the business when they’re ready to sell.

OUR SERVICE TO YOU

We will

Brainstorm and identify potential synergies that are valuable to you based on your circumstances

Unearth vertical or horizontal integration opportunities through our off-market database

Strategize and establish detailed acquisition plans and roadmaps

Gain access to closely-guarded vendor operating & financial information.

Provide crucial statutory trust account services that guarantee counter-party performance and the safety of your funds

Make sure the transaction proceeds professionally, legally and smoothly to achieve your strategic operational and/or investment goals

1. Initial Investigation (1-2 weeks)

  • Review high-level Information
  • Conduct macro-economic research
  • Conduct basic industry research
  • Determine overall suitability

4. Legal Documentation (2-3 weeks)

  • Appoint a solicitor to review the sales and purchase contract based on the terms agreed in the Letter of Offer
  • Conduct final due diligence as and if required by your solicitor, accountant and/or other advisors regarding detailed operational, financial and other information relevant to the business
  • Deposit the “Contract Deposit” into Everest’s statutory trust account

2. Initial Enquiries (4-6 weeks)

  • Execute a Non-Disclosure-Agreement
  • Review detailed financial information
  • Arrive at valuation of the business, subject to further due diligence

5. Settlement Procedures (2-3 weeks)

  • Conduct adjustment amount calculations (tax, employment liabilities, utilities, lease, royalties, stock, debtors and creditors etc)
  • Complete pre-settlement stock-takes, adjustments, title transfers, sign-offs
  • Pay the settlement amount on settlement date
  • The entire business acquisition transaction completes

3. Making Offers (1-2 weeks)

  • Execute a formal, written, “Letter of Offer” setting out high-level terms and conditions of the offer including price and all other terms
  • Negotiate with the vendor for any amendments
  • Deposit the “Initial Deposit” into Everest’s statutory trust account

TIPS FOR BUYERS

FEASIBILITY STUDIES

What’s the macro-economic environment like in the next 3-5 years?

What’s the business’ position in the market and how likely will the competitive environment change?

What potential synergies can be extracted from the acquisition?

What extra growth can be achieved if I add more resources to the business?

 LEGAL STRUCTURES

What’s the most optimal structure to acquire the business in terms of legal and beneficial ownership, tax implications, etc?

How would the business fit into the overall scheme of things and how will it interact with other assets in the existing portfolio?

How would the acquisition structure affect future exit options? Should I seek further legal advice?

FINANCING OPTIONS

What is the best equity-debt mix to fund the acquisition?

What funding options are available, at what cost?

What are the likely terms attached to the funding?

What is the risk and return relationship for the funding option?

What is the likely re-financing option in 3-5 years’ time?

What are the likely liquidity requirements during the acquisition?

DUE DILIGENCE

Technical details of business assets?

Accounting methods used and likely future methodology?

Financial projections for the next 3-5 years?

Serviceability of any business loans?

Tax planning in the next 3-5 years?

Integration of employees, products and internal management?

Mon-Fri 8 a.m.-6 p.m. EST,
Sat 9 a.m.- 5 p.m. EST, Sunday Closed
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