UHY Hacker Young | Chartered Accountants

How to find the next big deal

15 November 2019

So you want to expand your business through acquisition?

You don’t want to use business brokers and wonder what other options there may be. You will certainly have some idea of what you are looking for, and may already have approached a few companies operating in the sector and geographical location that you want to target, so far without success.

So, what can you do next?

Finding a business to acquire is a lot like looking for your next big customer. You need to do some research and identify a number of likely prospects and find out what you can about them from visiting or looking at available information. If the targets are in the same or a related sector then you will almost certainly have a good knowledge of the business and probably met the key management or owners from time to time at conferences or shows.

It is here that persistence pays off. If you are looking to land a new customer you would not give up after one or two calls. It can take time to build a relationship and get that first order and looking for acquisition targets is no different. You need to advertise the fact that you are always willing to talk to competitors about buying them out or perhaps setting up a joint venture. Everybody will want an exit at some time!

So how can we help?

We can assist with the research, to identify potential targets across a wider geographical area than you may be able to, we have access to specialist databases, including information on previous transactions.

We can prepare preliminary information on potential targets and help you decide which are the most interesting, and then we can make approaches to the owners to set up a conversation for you.

Throughout all this, we will advise you of the tax and accounting issues, and we can also introduce you to sources of finance, both debt and equity funds.

So if you are serious about growing your business come and talk to us.

Alternatively, visit our Corporate Finance page to find out more.