our process
We understand that the process of acquiring a business can be a strenuous one. Therefore, our team is committed to reducing your workload, by supporting your management teams through the process, identifying only the most fitting targets in line with your aims, and moving forward with absolute efficiency.
The 4CAP Equity approach to buying a business follows these 6 steps:
Step 1
We will meet with you to discuss your goals for the acquisition, your budget, and the resources you will require pre and post transaction. We will use the findings from this meeting to develop your initial specification and agree your requirements in a written project brief.
Step 2
Our research team will identify a long list of potential targets that match your requirements. This will be made available for you to review at your convenience, so you are always kept informed of the latest developments. We gather the vital information on each target, including financial performance, office locations, shareholding structure and services offered.
Step 3
A confidential approach is made to the key shareholders of each acquisition target. Each target’s appetite to sell is determined and our initial list is updated accordingly, ensuring that no time is wasted pursuing unwilling sellers and that all targets match your acquisition criteria.
Step 4
Together, we will review the long list, removing targets who do not match your specification, or whose appetite to sell is weak. Having agreed on a shortlist, we will contact the targets to explore their businesses in greater depth, collating information such as management structure, client concentration and financial performance, with a view to providing an initial analysis of their suitability.
Step 5
With your approval, we will organise an introduction between yourselves and the shortlisted targets that fulfil your requirements. We will arrange, manage and lead initial meetings during which both parties will have the opportunity to share their business journeys, and the reasons behind their interest in the transaction.
Where both parties have a mutual interest in proceeding, a second meeting will typically discuss the financials of the target, identifying synergies/economies of scale and formulating both parties’ views on post-acquisition integration.
Step 6
Should you wish to present an offer, we can prepare a valuation and a structure for the purchase to present to the target’s shareholders or appointed advisors. We will then actively negotiate with the target or its advisors where required to achieve a mutually acceptable agreement, formulating a final Head of Terms.
Once the Head of Terms are signed, we will work with all parties, including legal representatives from both sides, to determine a Purchase Agreement, typically an SPA. We will act as a mediator during this negotiation process to ensure any hurdles are overcome efficiently and amicably.
BUYING A BUSINESS
As an M&A firm with substantial specific expertise in the freight and logistics industry, 4CAP Equity works in partnership with the management teams and their shareholders of companies with an existing Private Equity commitment to realise the value of their investments and introduce them to opportunities throughout our extensive global network.
Our Private Equity services are effective whether you are looking for an entry point into the sector, or to consolidate your position. Get in touch today to benefit from our proactive approach and exceptional knowledge of this sector.
