Acquisitions can deliver revenue growth opportunities, diversify market and sector specific risk and provide cost synergies that go straight to the bottom line. However, identifying suitable targets and executing acquisitions is rarely straightforward. Anyone who has bought businesses through “normal channels” knows how inherently difficult and time consuming it can be.
Firstly, it’s like looking for a needle in a haystack. Secondly, it can take a long time to identify “the right targets” where there is a strategic fit with your Business – far longer than most expect.
If you’re using traditional channels by looking at what brokers or corporate advisors are selling – it’s challenging and difficult to find what you’re looking for. And if you do find a good business, you’re typically at the table competing with a handful of other buyers.
Approaching businesses direct is another option many try. But then managing price expectations becomes difficult. As soon as you knock on the door, the Vendor’s price immediately goes up – their attitude becomes, “you approached me, if you want to buy my business you need to pay my price.” Furthermore gaining access to essential operating and financial information in a timely manner is almost impossible. Everyone very quickly becomes cagey, and uncertainty creeps in.
There is a better way…
Johnsons Corporate Acquisition Program provides you with a disciplined approach to targeting strategic acquisitions and offers you end-to-end transaction management.
Over many years Johnsons has developed techniques and transactional skills specific to the acquisition of mid-sized private businesses. This puts us in a unique position to assist you with your growth objectives.
We place control back in your hands. Within 6-8 weeks, Johnsons Corporate can deliver you a portfolio of real “off-market” acquisition opportunities – all pre-screened against your requirements.
We manage the tricky parts: buyer confidentiality, vendor price expectations, access to sensitive financial and operational information, and maintenance of relationship integrity between the parties. And best of all we’ll secure you a better deal, in a shorter timeframe and at a lower price.
6 Benefits of Johnsons Acquisitions Program
1. Tailored to Your Objectives
We’ll assist you to specify your requirements and refine your broad needs down to a commercially
achievable outcome where there is a genuine strategic fit.
2. Multiple Targets to Choose From
We’ll provide you with choice by presenting multiple targets to choose from. We’ll profile each
company so that you have the information you require to make the right decisions.
3. All ‘Off-Market’ Deals
When we undertake custom research and run a Direct Marketing campaign across your chosen
industry sector(s) it agitates the market. The outcome is multiple parties who have been
considering a sale but are yet to take action. This means you’ll be presented with a pool of
acquisition targets that are all “off-market” opportunities. So you won’t be competing with
a crowd of other buyers at the table, which gives you more leverage in the negotiations.
4. Market and Company-Specific Intelligence
As part of the process we run, you’ll receive unique and current sector specific intelligence on the
performance of a range of different businesses from across the sector. Interestingly, many sellers
are prepared to provide us with a much deeper level of information than they would otherwise
provide direct to a prospective purchaser sitting across the table.
5. Reduced Purchase Price
A key role we play is in reducing Vendor price expectations. We’re able to do this because we are
talking and dealing with a number of prospective targets from across the same sector. Each target
is made acutely aware of this. If they are serious about selling then their price expectations need
to meet the market.
6. Less Time and Reduced Risk
Working with Johnsons means the time taken to identify live target opportunities is reduced to just
6-8 weeks. Given the additional intel and stakeholder management, your execution risk is reduced
and so is your financial investment.
Because we specialise in dealing with the owners of mid-sized private businesses day-in and day-out, we thoroughly understand their culture, aspirations and challenges. As a result we speak their language and are in an invaluable position to open doors and close deals that others cannot.
Contact us today for information on how we can assist you to grow your Business.