Buying a company is a process that should not be underestimated in any way since you can only buy right or wrong, and in the latter case, it can cost more than “only” the full purchase price. Like everything, acquisitions have processes and procedures that can be used to minimise the risks associated with the acquisition.

As a first step, you should thoroughly research the company you are looking to buy and get to know it not only from a numbers perspective but also from a process, equipment, management capability, customer-supplier relationships, etc. Also, don’t trust “only” the outputs that the seller prepares for you, reconcile the statements from clean accounting data to make sure the information is correct, create a financial model, and “stress” test the company to see where its limits or synergies are for the company you already own. This will allow you to prepare a financial offer that matches the realistic assumptions of what you can achieve with the company and in what time frame.

There are certainly many more steps to follow as each transaction and each company is specific and unique, but never forget to set up the appropriate structure and legal framework for the entire sale, both in terms of guarantees and warranties that should you ask the seller to protect you in case of a bad surprise, as well as for tax and other reasons.

A company acquisition deserves an entirely professional approach, have no worries though, Invisory will work with you to build a team that represents you with any counterparty and has the best competencies and experience you may need to make any transaction and decision successful.

Complete financial analysis of the target company

• We will prepare a financial model to use not only to value the target company but also to determine its sensitivity to market change and show you what your results will look like once synergies are brought in.
• Structure the transaction – setting up a comprehensive business structure at the level of acquisition price, payment terms, secure settlement, and timing of the entire transaction. If interested, we can arrange a professional tender for both bank and junior financing for the entire transaction.
• We will prepare business and financial materials for communication with banks, including a basic business plan.
• Complete financial due diligence.
• Assistance in the preparation of contractual documentation and terms of the purchase or loan agreements.