M&A Services — Strategic Acquisition Process™

  • Strategic Acquisition Process™
  • Step 1: Define Acquisition Criteria  

    With the assistance of your financial advisor, you or your management team designates, will define or redefine your acquisition criteria. The acquisition criteria will primarily focus on industry types, size of the target companies, sales revenue and profitability requirements of the target company, geographic requirements and other vertical and horizontal target synergies. Your financial advisor will also assist you, and or your team designates, with estimating and allocating the necessary acquisition funds and with obtaining preliminary financial commitments. This step is subject to your review and approval.

  • Step 2: Develop Acquisition Targets  

    Based upon your acquisition criteria, we will develop potential acquisition candidates from opportunities currently available through CEG, through our Investment Banking and M & A affiliates, and by using our research staff to identify companies that may be available through our comprehensive database. This step is subject to your review and approval.

  • Step 3: Contact Acquisition Targets

    After you have approved of the acquisition targets and executed non— disclosure/confidentiality agreements, your financial advisor will obtain and provide you with summary information on each company that is available through CEG and our affiliates. Your financial advisor will further confidentially contact additional companies that are not currently available to ascertain their interest in discussing a sale, merger, or divestiture of their company to you.

  • Step 4: Seller Company Meetings

    We will work closely with you to prepare you, and or your management team designates, with a thoughtful and compelling presentation to the selling company ownership. The primary purpose of these initial meetings is to ascertain if there is a reasonable match of your acquisition criteria to the characteristics of the selling company. The secondary purpose is for each party to learn more about the other party and their companies along with learning about their respective needs from a proposed transaction.

  • Step 5: Company Assessment

    Your financial advisor will assist you with reviewing the company’s strengths and weaknesses regarding its sales and marketing, operational management, and human resource positions. We will also prepare a market valuation. Your accounting firm will review the financial performance of the company and your legal counsel will review the company’s contracts, leases, intangible assets, and other essential items for legal consideration.

  • Step 6: Letters of Intent

    Your financial advisor will prepare, present, and negotiate letters of intent from you or your company for the purchase of the most desirable acquisition candidate. A letter of intent is generally a non-binding exclusive agreement identifying the economic terms and conditions that you are willing to pay for a company.

  • Step 7: Due Diligence

    We will schedule and manage all due diligence meetings and requests for documentation. Due diligence is the process of you and your company’s legal and accounting counsel reviewing the financial, legal, and other operating aspects of the company prior to completion of the Definitive Agreements (purchase agreements).

  • Step 8: Definitive Agreements

    Your legal counsel generally prepares the Definitive Agreements, which are based upon the economic terms and conditions of the Letter of Intent. They are most often contingent upon completion of your Due Diligence review. Definitive Agreements are binding agreements subject to review and approval by you, the seller, and each of your respective legal and accounting counsel.

  • Step 9: Final Adjustments and Closing

    Your financial advisor will represent you during any closing adjustments to the Definitive Agreements. Thereafter, the Definitive Agreements will be signed, the assets and or stock of the company along with the purchase funds will be transferred to the respective parties, and the transaction will be completed.

  • Client Review & Approval  

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Mergers & Acquisitions

“I am writing you a letter to personally thank for the outstanding service that you provided me regarding the marketing and selling of my company.
After interviewing several merger and acquisition specialists and business intermediaries, it became clear that you and your company stood out from your competitors.
After engaging your services, you appraised my business, prepared a thorough representation package including all the key elements of my business, and provided pre-qualified, potential buyers with an elaborate marketing package regarding my company.
More importantly, you marketed the sale of my business confidentially, brought me several offers from qualified buyers and companies and ultimately brought me a full price offer from an individual buyer who was a perfect match for Darcom Computers. Also, not one of my employees, suppliers, or customers was aware of the pending sale until it was completed.
Thank you again for your professional assistance in selling my company to an exceptionally qualified buyer. I would certainly refer anyone interested in buying or selling a business to you.”

Michael M. Stoye , President, Darcom Computers