- The Bicknell Group initiates each acquisition assignment by working closely with the client to review or establish his goals, acquisition criteria, available financial resources, and preferred acquisition strategy.
An important part of the process is getting to know the client firm's strengths and weaknesses so candidates can be introduced which best contribute to the firm's growth.
These steps lay the foundation for a successful and efficient acquisition effort.
Acquisition Candidate Search
- In the search phase, The Bicknell Group undertakes a comprehensive survey to identify those businesses which operate in the target market. The thoroughness of this survey is critical to finding the best value.
Acquisition targets are ultimately selected by the client from a list that has been screened against the pre-established criteria and has survived extensive review and evaluation.
- The most advantageous approach to target companies is determined in consultation with the client.
The person making the contact, the atmosphere of the initial meeting and the topics to be covered are carefully considered in order to maximize the chances of a favorable reception.
The approach is made only after careful assessment of the motivations of the key players.
- As the first step in developing a proposal, The Bicknell Group prepares a valuation estimate of the target company and, with the client, establishes a walkaway price for subsequent negotiations.
Based on the valuation estimate, a transaction is structured which is responsive to the seller's motivations and provides a starting point for negotiations.
- Our role in negotiations varies based on the client's preference but is generally to advise and assist.
If the initial proposal is not rejected outright, modification is usually required based on information gained during presentation of the proposal. Successful negotiations lead to an agreement in principle which may be documented with a letter of intent or an accepted term sheet signed by both parties.
- The closing phase entails negotiating, drafting and signing the acquisition agreement, which includes representations and warranties by both parties.
In our role as an intermediary, we facilitate progress by fielding questions, making inquiries on the client's behalf, and working closely with the client's legal and accounting advisors.
- Clients are provided frequent reports concerning the status of the acquisition program.