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VICTORY PARTNERS' ROLE AS YOUR BUY-SIDE ADVISOR
Victory can help your company develop and implement an acquisition campaign or an industry consolidation strategy, identify the entire universe of potential target acquisitions, identify the ideal acquisition, initiate non-auction deal flow, negotiate terms with interested sellers, and, if necessary, arrange leveraged-buyout financing.
Our principals have extensive experience advising acquisitive companies design and implement their strategic acquisition objectives. Our strength comes from our aggressive approach to finding companies not yet at market. This proactive method of sourcing deal flow creates numerous opportunities for the buyer allowing them to purchase leading companies within targeted industries under favorable, non-auction conditions.
Under certain circumstances, Victory can help the buyer arrange for financing to complete the acquisition. We maintain vast relationships with major banks, venture firms, and other lending sources, providing greater flexibility and more options to the acquiring entity.
SOME FAQs
- We can conduct our acquisition search ourselves. Why should we hire an investment banker, like Victory?
Today's M&A marketplace is cluttered with thousands of investors, both corporate and private, looking to acquire quality companies. Without a clearly defined acquisition strategy and the resources to source significant deal flow, many buyers will find themselves evaluating a company that has been "picked over" by dozens of potential acquirers. Or worse, they may find themselves in an auction situation, where several other acquirers will compete to drive up acquisition costs, and drive down returns.
You may find yourself at a serious disadvantage should you undertake an acquisition search on your own. Only an experienced investment bank will have the time, resources, and relationships to completely search the entire universe of potential acquisition targets and find the ideal company for you.
- We know our industry better than anyone else and know the industry participants that best fit our acquisition criteria. Therefore, are we not the most qualified to conduct the acquisition search?
As a leading industry participant, you have a significant base of knowledge about your industry and the competitive environment. As such, you may know some, if not most, of your closest competitors that would make attractive acquisition candidates. However, the very focus that has enabled you to succeed in your industry may limit the scope of your search, causing you to miss exciting opportunities to acquire companies that operate outside, or partially outside, your industry. For example, the perfect acquisition candidate may not be your nearest competitor, but rather a company that has partial business lines within your industry. It's main business could be different from yours with an entirely untapped market represented by its customer base. Acquiring that company could allow you to leverage its presence in its markets and provide cross-selling opportunities with your business.
- With so many sources available, both online and in other media, that list or advertise companies for sale, why would I need to hire an investment bank to do the work these sources are already doing for me?
While it is true that there are a large number of sources available, the plain truth is that there is too much available capital out there seeking to acquire too few quality companies. While some believe that scouring this vast pool of sources will provide the necessary pool of potential acquisition targets, we believe that this random, opportunistic approach is inefficient and reactive, and is at a decided disadvantage to a proactive, strategy-driven approach with an emphasis on non-auction deal generation.
- What about the fees that investment bankers charge?
Because Victory adds value to your transaction, the fees are always more than made up for by the significantly better pricing terms that we as professionals will be able to generate, both from our experienced negotiation of transaction price as well as the favorable acquisition price resulting from the non-auction nature of the deal. Because our firm is results driven, our fees are lower than industry norms. In many cases, we will reduce our fees even further and take an equity position with our clients in the new company. As such, we are fully committed to the long-term growth and financial success of the acquisition. This ensures that we will advise only on acquisitions that make absolutely sound financial investments.
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