Proactive dealmakers
Proactive dealmakers
Proactive dealmakers
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Buyside advisory

The acquisition of a company is never a standard process; it is always custom work. The acquisition may occur in a variety of manners, and with a variety of objectives. Based on your own starting point we work with you to determine the form that the acquisition process should take.

Strategic acquisition
Do you wish to perform a strategic acquisition on behalf of your existing business, by taking over another business

Management Buy-Out
Do you, on your own or with colleagues, wish to take over the business that you are currently working for

Management Buy-In
Is it your ambition to set up in business, do you wish to do this by acquiring an existing business

For the specific characteristics and points to consider with the various forms of acquisitions you can choose from the links displayed on the top right.

Strategic acquisition
Strategic acquisition

If you wish to achieve growth you can do this by expanding your existing business; autonomous growth. However you can also do this by the strategic acquisition of another business. A strategic acquisition frequently occurs in order to increase market share. It may be that you wish to take over a direct competitor in order to increase your market share. You might also wish to consider acquiring a business outside your own branch because, for instance, the range of products would complement your own products.

A takeover is complex and intensive. It is advisable to bring in experts who can guide you. The following aspects, among others, play a role in taking over another business:

  • Is your own business ready for a strategic acquisition?
  • Which market do you wish to achieve growth in, and why?
  • Why do you wish to acquire this particular party; are any alternatives available?
  • Make sure you have a clear picture of the market, with its opportunities and its threats.

The proactive approach of Factor Corporate Finance is aimed at clearly identifying which factors are critical for you and the proposed acquisition, as quickly as possible. There must be a good business fit with the target business if the acquisition is going to be successful in the long term. This means more than just the business activities; such matters as business culture and market profile are also important. In practice this means that you will need to look at a large number of candidates, and that you will reject most of them, so that you will finally come to a deal with the most suitable business.

Management Buy-Out
Management Buy-Out

As an employee you wish to buy out the company you are working for in whole or in part, we refer to this as a management buy-out (MBO). Management buy-outs are occurring increasingly, in situations where the company is not taken over by a third party, but is passed on to its existing management.

Whatever your considerations may be, an MBO has advantages. You know the business, you have a good overview of the customer base and the suppliers, and you know the personnel and the owner, which means that the process can be relatively short. This is likely to be to your advantage if external parties are also showing interest. There are also advantages for the seller in selling the business to its existing management. Nevertheless this is an acquisition process with a number of unusual characteristics:

There is an existing (employer/employee) relationship between you and the seller.
The interests of the parties involved in an MBO process are frequently no longer in line with each other, but actually become opposed.
There is a transition to be undergone, from employee to business owner.
There is a need for finance, which frequently requires a bank, but also frequently involves risk capital, for instance from a venture capital company.
An MBO has the greatest chance of success if the management is a significant factor in the value of the business. In this situation the importance to both parties of making the deal succeed is at its greatest. It is important to note here that the employee must have the business acumen to make the transaction successful in the long term.

Because you are to start out as business owner(s), alongside the purchase process there are a large number of fiscal and legal steps that have to be taken. Furthermore it is almost always necessary to obtain suitable financing. We can help you to establish the most suitable form, and we can help you in your contact with your chosen financiers.

Free advice
Achieving a successful MBO is a major step that you will probably only take once, and the relationship between the seller and buyer is highly sensitive. We will be pleased to exchange ideas with you about the things you will need to consider in a takeover proposal, without commitment and free of charge.

Management Buy-In
Management Buy-In

You have the drive to become an entrepreneur and you are considering a management buy-in (MBI). This means that you take your first step as an independent entrepreneur by purchasing an existing business. The nature of the business and the complexity of the required financing and negotiations determine to a large extent the substance and the duration of the MBI process.

It is often a case of a business whose current owner wishes to retire and is looking for an external purchaser. It may also be the case that the existing management are confronted with problems, and see an MBI as the best solution.

Critical success factors for an MBI

  • Your own resources need to match your search profile.
  • You must have a clear understanding of your own added value in the management process; what value do you add?
  • You need to draw up a good search profile.
  • Potential acquisition candidates which are not actively for sale will be approached proactively.
  • There must be sufficient time for discussions, developing plans and exploring markets.
  • The home front needs to be kept informed of the far-reaching plans, and must be supportive.

The acquisition process
You determine what fits with your ambitions and what is (financially) achievable, in consultation with us. We approach the most interesting businesses, obtain the most optimal financing construction, and guide you through the entire acquisition process, on your path to a successful conclusion. We know this particular process better than anyone else and we regard MBI as one of our core activities, and certainly not as a sideline.

Free advice
Starting an MBI process is a major step that you probably will only take once. We will be pleased to exchange ideas with you about the things you will need to consider in an MBI proposal, without commitment and free of charge.

Consultation with one of our specialists?

A free and informal conversation about your options.

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