Our Search Process

Acquisition Strategy Planning

• Define the parameters within which the ideal target company will sit.

• Understand our client’s reasons for making the acquisition, and how the target will fit into their existing company or portfolio.

• Assess acquirer readiness in terms of funding, documentation, profile etc.

• Assist with acquirer profile development if required.

• Agree on the approach to use in this search, considering issues such as acquirer confidentiality, the competitiveness of the market, focus and timing.

Search

• Some clients have specific targets in mind already, and our own research is used to complement this list. Other clients ask us to commence the search from scratch. In both cases, our initial longlist of targets will include some that push out into adjacencies to test assumptions and help further refine the search.

• Ongoing discussion allows us to adjust our filtering as cull targets from the list, leaving only those who most closely match our clients’ requirements

Approach

• Our approach to the owners of each target business is tailored to each case, using introductions where possible and a range of cold outreach methods. Ideally we will meet with the owner in person, and this is always our first preference.

• Introducing the idea of the acquisition is always tactful and considered. These businesses are generally not “for sale” and the language used is important. Our clients are represented in the most professional manner, maintaining confidentiality when required.

• At this point sometimes additional characteristics are identified that will exclude the target from proceeding further in the process. Red flags may be identified that need further investigation in due diligence but do not prevent the target from being progressed further.

Introduction

• Our client is introduced to the key stakeholders at the target company for confidential discussion.

• Initial due diligence based on non-confidential information released by the target is performed at this point. Hahnbeck provides insight and assistance but responsibility for due diligence is the client’s own.

• Discussions around the key terms of the proposed acquisition take place. If the initial negotiations are encouraging our client will choose to proceed to Exclusivity and conduct thorough due diligence.

Exclusivity

• When a target is considered a serious prospect for acquisition, the target will agree to enter into a period of exclusivity that ensures other potential buyers are excluded from the process while our client conducts thorough due diligence.

• A skeleton agreement that outlines the acquirer’s intentions and the main elements of the proposed acquisition is drafted as either a Heads of Terms (HoT) or Letter of Intent (LoI). Besides these draft terms the document will usually contain confidentiality and non-solicitation clauses to protect both parties.

Negotiation And Closing

• If the client would like to proceed following due diligence, the final terms of the agreement are negotiated between the legal counsel on both sides.

• Once a reasonable agreement is reached, the deal closes.

Integration

• The acquisition is integrated into the parent company in line with the acquisition strategy.