{"id":6033,"date":"2023-10-30T19:24:09","date_gmt":"2023-10-30T19:24:09","guid":{"rendered":"https:\/\/fusacq.ca\/?p=6033"},"modified":"2023-12-05T21:05:27","modified_gmt":"2023-12-05T21:05:27","slug":"a-buy-side-mandate-why","status":"publish","type":"post","link":"https:\/\/fusacq.ca\/en\/a-buy-side-mandate-why\/","title":{"rendered":"A Buy-Side Mandate&#8230; Why?"},"content":{"rendered":"<p>Many successful entrepreneurs are looking for accelerated growth in sales and profits. One of the most attractive options is growth through acquisition. Among the advantages of acquisition are the following:<\/p>\n<ul>\n<li>Buyers often look for companies of a certain size; if YOUR company is a sizeable one, it will be more attractive to potential buyers.<\/li>\n<li>In a given market, a larger company will command higher multiples.<\/li>\n<li>A company with a larger market share is able to negotiate better terms with suppliers.<\/li>\n<li>A larger company can afford better marketing and R&amp;D budgets.<\/li>\n<li>In a context of labor scarcity, larger companies are often more attractive to employees&#8230; they can offer better employment conditions.<\/li>\n<\/ul>\n<p>Entrepreneurs are often experts in their field; they know their products, their markets&#8230; that&#8217;s why they&#8217;re successful; but when the time comes to buy a new business&#8230; they often need help.<\/p>\n<ul>\n<li>What is the acquisition strategy?<\/li>\n<li>How much to pay?<\/li>\n<li>How do you integrate the new company?<\/li>\n<\/ul>\n<p>An M&amp;A advisor with a proper mandate can be invaluable in ensuring a successful transaction.<\/p>\n<p><b>For the process<\/b><\/p>\n<p>The advisor is &#8220;immersed&#8221; in the day-to-day business of buying and selling companies. They work according to an established process and call on the right people (accountants, financiers, lawyers) at the right time.<\/p>\n<p><b>For research<\/b><\/p>\n<p>A very large number of transactions involve companies that are not on the &#8220;for sale&#8221; market. Finding the right target that matches your growth objectives requires time for research and contacts&#8230; time that the entrepreneur and his team don&#8217;t have.<\/p>\n<p><b>To negotiate<\/b><\/p>\n<p>The advisor has seen many transactions. He&#8217;s in a position to consider many factors, including price, of course, but also other terms and conditions that may favor a transaction.<\/p>\n<p><b>Confidentiality<\/b><\/p>\n<p>Initial approaches are made anonymously, under the seal of confidentiality. The targets approached don&#8217;t know who the broker represents, which makes for a fairer process for both parties.<\/p>\n<p><b>For pre-qualification<\/b><\/p>\n<p>The broker verifies that the target meets the buyer&#8217;s criteria. Neither the seller nor the buyer has time to waste on a transaction that will never take place. Prequalification is the basis for further relevant discussions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many successful entrepreneurs are looking for accelerated growth in sales and profits. One of the most attractive options is growth through acquisition. Among the advantages of acquisition are the following: Buyers often look for companies of a certain size; if YOUR company is a sizeable one, it will be more attractive to potential buyers. In [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[79,80],"tags":[],"class_list":["post-6033","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-an-enterprise"],"acf":[],"_links":{"self":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/comments?post=6033"}],"version-history":[{"count":1,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6033\/revisions"}],"predecessor-version":[{"id":6034,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6033\/revisions\/6034"}],"wp:attachment":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/media?parent=6033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/categories?post=6033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/tags?post=6033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}