Buying a Business

Buying an existing business is an effective and well-tested strategy for any company that wants to quickly add capacity or technology, expand into new markets and grow their customer base. But it could be challenging to know where to begin, how to find businesses that fit your criteria, what is a business’s true value and how to structure a deal that will make sense for both parties. To navigate these challenges and to maximize your return on investment, you need an experienced partner who could leverage their industry knowledge and has strong global network and a fierce commitment to achieving your objectives. That’s exactly the kind of discipline and tenacity ILOC offers to all our clients.

Our integrated team of M&A specialists provide critical insights throughout the acquisition lifecycle, combining sectoral knowledge, analytical tools and methodology along with propriety data to help you make smarter & informed decisions.  ILOC’s database, geographical spread and decades of experience in buy-side transactions allow us to comb the market in search of the ideal businesses and source hundreds of potential targets for any specific acquisition criteria. Whether it be by product, technology, size, geography, or industry, we quickly & efficiently identify the best fit that not only matches the criteria but are also easy to integrate with your existing business and could be operated remotely.

How does ILOC help with Buying a Business?

Our M&A experts will walk you through the entire purchase process and assist you at every step until the successful completion of transaction. Our business acquisition services cover:

• Define the parameters for acquisition targets.
• Research, identify & contact suitable prospective targets.
• Valuation of the target business
• Analysing and quantifying possible synergies with your business
• Assist with Due Diligence process.
• Structuring, pricing and negotiating the purchase transaction.

In addition to identifying the best target, negotiating an acquisition of business could be quite daunting as it has multiple elements such as the price, the legal terms, the guarantees, the non-competition agreement, which shares are to be sold, whether real estate forms a part of the deal, if there is an earn-out, whether the seller will continue to receive a salary, the period of transition during which they continue to work for the business, means of payment, what happens to the employees, etc. Experience in how to manage these variables is important. ILOC as an advisor helps clients address all these critical issues and support them in confidently moving forward and maximizing the investment.

Buy Side Process:

We firmly believe to avoid the risk of a time-intensive, fruitless process or worse, a poor investment one should have a highly disciplined buy-side process and to achieve this we follow these 5 steps:

• Work closely with client to establish a full set of parameters for targets that will define a successful acquisition.
• Identify high potential targets at preferred location and importantly, disqualify the ones which are not a good fit.
• Determine an estimated value of shortlisted targets and analyse the synergies.
• Set up meetings with interested sellers & negotiate the terms of deal that is engineered to achieve the objectives of client.
• Finalize the agreement and close the transaction.