Buying Companies
Acquisition of businesses and assets can create substantial value through creating synergetic platforms and fostering growth, among other rationales. In many instances, the question is not whether companies should acquire, but rather how to gain access to the best targets, execute acquisitions successfully, and create value through acquisitions. For a successful acquisition, M&A expertise, deep sector knowledge, tailored strategies, and a nuanced approach for each situation are paramount to creating value with full potential.
How we help clients win the best targets and build platforms
Leading buy-side M&A processes across the full deal lifecycle
Leadership in acquisitions in the context of buy-and-build, carve-out, and scale-up
Development of compelling platform strategies and market sounding
Direct access to domestic and international companies
Development of synergy assessments and platform strategies
Facilitating platform building with management and shareholders
Planning of merger integrations and value creation programs
Expertise in deal sourcing and buy-and-build
The experts and partners at XQUENT bring extensive experience in company acquisitions and platform buy-and-build, each with over a decade of leadership in investing, buy-side M&A, corporate finance projects, hands-on management, and a proven track record in buying companies. Their unparalleled sector focus spans software, IT services, business services, industrial technology, clean tech, consumer goods, internet, and other innovative sectors, driving exceptional project outcomes. XQUENT is 100% independent, ensuring unbiased perspectives while leveraging a global reach with inherently local market insights. At XQUENT, client projects are operationally led by partners and senior experts, a strategic decision that forms the foundation for delivering superior results.
Approach for deal sourcing and buy-and-build
Successful deal sourcing and building superior platforms require a tailored approach.
Company acquisitions require deal sourcing with market experience and an individual approach to shareholders. With the unique goals of both the buyer and the investor in mind, we identify the most suitable companies for our clients, establish a constructive momentum for discussion and negotiation, provide insight-driven negotiation support, and facilitate deal closing and subsequent platform build.
Phase 1 - M&A and Platform Strategy
In the initial stage of M&A and platform strategy, we assess untapped market opportunities in your segments, collaboratively develop investment strategies with executable acquisition screenings, qualified and tested by seasoned industry experts. Our experience encompasses various buy-side situations, including buy-and-build, corporate buy-outs, and scale-ups.
Phase 2 - Deal Origination
Moving on to the second phase, we provide access to our unique industry network, and company databases specialized to software, technology, and business service companies. We identify suitable target companies and initiate conversations with companies actively pursuing an investor. Our approach centers around cultivating a shared understanding of target markets, strategies, and business and operating models, honing unique cultural and leadership DNAs on both sides of the table to lay a foundation for cooperation.
Phase 3 - Management Meetings and Letter of Intent
In the third phase, the detailed expectations of both parties are discussed, and an initial evaluation of the company and the investment case is carried out. Ensuring the commitment of all key decision-makers to the deal is essential. The next steps of the process are defined, and the key points of the collaboration are ideally formalized in a letter of intent.
Phase 4 - Due Diligence
The fourth phase involves conducting thorough buy-side due diligence, encompassing commercial, technical, HR, financial, tax, and legal aspects, among others. We manage and facilitate a due diligence process to enable a comprehensive assessment of all pertinent aspects of the target company or assets. Our unwavering dedication lies in extracting, quantifying, and mitigating due diligence flags and helping identify actionable growth and value creation opportunities, among others.
Phase 5 - Negotiation and Closing
In the fifth phase, we prepare and moderate negotiations with the respective party, including valuation, transaction structure, and the overall contract. Besides coordinating contract development and final signing, closing requirements are managed and prepared, where required. We help establish a smooth and focused negotiation process, laying the foundation for signing and closing as well as building momentum for subsequent growth and integration.
Phase 6 - Growth and Integration
The sixth and final phase can be a longer period of merger integration, growth transformation, or scale-up. We work closely with the shareholders, management, and employees, providing hands-on support and project leadership. Our support typically includes merger program management as well as strategic and operational projects for building market-leading capabilities in sales, customer success, delivery, technology, operations, and support services, among others. For this purpose, we offer extensive support for merger integration and growth.
Depending on the transaction type and situation, the approach is adjusted to optimize acquisition deal flow, and deal timing, secure favorable deal terms, create a solid investment case, and enable growth and value capture after the transaction is closed.
Milestones of acquiring and building companies
Platform and acquisition strategy
Efficient buy-side process preparation and execution
Longlist and selection of potential target companies
Access to a broad sectoral network with target companies
Extensive outreach to target companies through local and global networks
Financial planning and evaluation of target companies
Buy-side due diligence management
Full potential plan valuation
Synergy assessments
Optimized acquisition and negotiation process
Negotiation with the respective party on transaction structure, company valuation, and contract terms
Coordination of contract signing
Assistance with closing conditions
Preparation of integration and growth strategy for subsequent value creation (optional)
Contact
We are your partners, bringing expert knowledge and comprehensive industry insights, while ensuring a confidential setting to discuss your situation. Let's begin your journey!
Maurice Heinz, Managing Director
Industry expertise in deal sourcing and execution
Great deals require industry expertise.
The most direct access to targets: Our experts help you identify unique opportunities and win attractive target companies, execute deals with favorable terms. With a clear vision of the big picture and a sharp focus on important details.
