Like divestitures, acquisitions are the main stay of Pacific M&A and Business Brokers Ltd.’s business.
There is no magic formula to make acquisitions successful. Each deal must have its own strategic logic, and must be treated and handled as such. No two are alike, even if in the same industry and same size. Buyer clarity in their goals and criteria however, is essential in the success of acquiring a business. In our experience, the most successful buyers are those that have specific, well-articulated criteria.
Business acquisitions can (as in the Divestiture side) take the form of acquiring “going concern” businesses or businesses “not as a going concern” and can also be segmented into what we call “Main Street” and “M&A” deals. In Main Street deals, the acquiring party is often an individual, partners, or family members, and the acquisition is usually non-strategic, non-synergistic, non-industry or non-financial in nature. M&A tends to be more focussed in the lower middle market where the acquiring party is a strategic, synergistic, financial or industry buyer and where the acquisition often will result in it being a “Subsidiary”, or an “Add-On”, or a “Platform” company.
In our experience, the successful strategic acquisitions are those that typically conform to one or more of the following objectives: Acquiring skills or technologies (including people) more quickly and/or at lower cost than they could be built in-house and improving the performance of the target company; exploiting the business’ or industry specific scalability; removing excess capacity from an industry; taking out competition; or creating market access; and more.
If you are an individual looking to become an entrepreneur and get into business for yourself or if you are a specific industry buyer looking for growth through acquisitions or a private equity group looking for an add-on or a platform company, the professionals at Pacific can help you achieve your objective through one of a multiple buyer programs they have including their “Passive” and “Pro-Active” programs.