Have you already received an approach from a potential purchaser?
You may have already been approached by a potential purchaser and even received an attractive offer from them. What do you do now?
Is the buyer credible?
Firstly you should assess whether the potential buyer is a credible purchaser. There is no point spending your time, and possibly lawyers fees, until you are certain the organisation making the approach is a serious buyer and has the resources to complete the acquisition.
Using our powerful databases we can undertake research into the buyer’s financial standing and past acquisition history. This will often give us a clear view of whether they have the funds available to complete the acquisition and whether they have a track record of successfully completing acquisitions. We can usually also identify through press releases and other publically filed information whether they have made any announcements about their strategy and we can deduce whether their approach to you fits in with their strategic plans.
Is their offer reasonable?
We can tell you fairly quickly whether the offer they have made to you is a good one, and whether the terms are reasonable. We can give you a view of whether they are offering anything above the standalone valuation for your company. Based on our findings about their strategic intentions we can also give you a view on whether we think they are including much of a strategic premium in their offer.
What should you do next?
If you have had a good offer from one party, you should seriously consider whether there might be other prospective buyers who might make similarly good, or better, offers. The best offers are usually obtained during a competitive bidding process when bidders know they are in competition with each other.
We are always happy to have an initial, free of charge, no obligation discussion of your circumstances. Please contact us here.