Projects

Acquisitions

Acquisitions: Fuelling Growth

Most companies that are large enough to acquire others have already learned that even though it may appear expensive, it can often be easier to acquire than to develop internally. The decision to acquire begins with an analysis of your current IRR. If you find that you can earn 15% on monies invested internally and you can acquire companies for an ROI of 20%, you should be in growth through acquisition mode

If you find yourself in that position, the next question is direction. Do you want to simply buy competitors and increase revenues, or are there synergistic products and markets that could maximize your current marketing operation? Should you be adding new geography or adding new markets in your current area? Develop a strategy in conjunction with Infinite Capital before you start the process of looking for acquisitions.

There are many considerations to be noted in an acquisition analysis, which differ for a corporate acquirer and a financial buyer. The corporate buyer should consider amongst other factors: synergy, management, products, markets, savings, capacity, and price. Other considerations would be red flags that could signal dangers below the surface such as inconsistent financials, environmental issues, lawsuits, low margins, competition, and poor documentation to list a few of the more obvious.

Approach:

Our acquisition advisory approach is as follows:

1. Creation of Buying Strategy

Developing alternatives and recommending appropriate courses of action for owners to take as part of a:

  • Growth Strategy
  • Industry Consolidation Strategy
  • Business Diversification Strategy
  • Advising clients in the development and formulation of acquisition strategies
  • Recommending appropriate courses of action  

2. Acquisition Search

  • Identifying potential acquisition targets (including companies not on the market)
  • Identifying, screening and initiating discussions with potential sellers  

3. Valuations

  • Establishing valuation expectations and acquisition price multiples

4. Acquisition Implementation

  • Executing management/employee buyouts
  • Executing consolidations & roll-ups
  • Executing strategic acquisition
  • Executing financed acquisition transaction
  • Closing the Acquisition
  • Structuring transactions
  • Coordinating legal, tax, accounting and other closing-related buying activities 

5. Capital Resources

  • Arranging acquisition financing for buyers, consisting of all types of debt and equity

 

 To explore your companies current Acquisition Opportunities click here.

Infinite Capital
PO Box 7089
Glen Iris VIC 3146
Australia
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