The Confidential Business Review is a comprehensive report containing the following information in Acquisition Process as follows:
• Executive Summary
• Business Description
• Products and Services
• Markets and Customers
• Assets and Equipment
The Hess Business Consulting, Acquisition Process is an eight-step process that identifies, introduces, negotiates, and closes acquisitions. Here are the eight steps:
1. Develop Acquisition Criteria
First, we meet with the Buyer to understand exactly what the company is looking to accomplish with an acquisition. We discuss the strategic fit of an acquisition in terms of size, industry, functionality, location, and management bench strength.
2. Identify Target Companies
Next, we research the market, trade associations, and subscription, proprietary, and internet databases and resources to identify a preliminary list of acquisition targets.
3. Create and Clarify Value Proposition
Together, HBC Advisors and the Buyer create a compelling value proposition for the acquisition targets. The value proposition is presented to interested companies in the form of a marketing book that features:
• The strengths and advantages of the acquirer;
• The value the acquisition will bring to the combined companies;
• The strategic fit;
• Examples of Pro-formal financials; and
• The financial strength and financing ability of the acquirer.
4. Marketing Campaign
The HBB prepares and implements a marketing campaign that includes an effective direct mail campaign; follow-up phone calls to business owners that Spell out the value proposition; and a follow-up letter from the firm. Marketing campaigns also include select Internet channels and communication with a broad database of industry and referral sources.
5. Meet with and Screen Target Companies
The HBB meets with target companies that have been pre-qualified and educates the potential seller as to the process. We further qualify the company, obtain necessary financial and operational information and documents, and set expectations as to price and terms.
6. Present Acquisition Options to Buyer
The HBB sets up a set schedule of meetings with our client every two to four weeks for the period of our engagement. As Touchstone identifies qualified acquisition targets, we set up meetings between the decision-makers to see if there is a cultural and personality fit between the companies.
7. Negotiate Price and Terms, Prepare Term Sheets and Letters of Intent
The HBC works with the Buyer to negotiate and prepare term sheets and letters of intent. We can actually negotiate with several companies at once.
8. Due to Diligence and Closing
The HBCB will assist with due diligence and coordinate the due diligence and closing process.