My 1st Acquisition Package

A neatly wrapped package of services designed to assist first time entrepreneurs and search funders in acquiring their platform company, with an integrative 'On the Job Learning' approach

The Fine Art of Acquiring the First Company

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Components of the Package

  • Review of the client’s objectives and advice for various components

  • Develop a financial model for initial platform and add on's

  • Execute & manage the 1st Acquisition including:

    • SIC code stratification

    • Research and Development of target list

    • Outreach execution to targets by Phase

    • Screen respondents as to fit

    • Report to client of outreach results

    • Manage intro call with client

    • Complete pre-LOI due diligence of target/s

    • Draft Letter of Intent

    • Recommend best acquisition terms/structure

    • Provide negotiation of terms with sellers

    • Set up data room for pre and post LOI due diligence

    • Manage entire due diligence & closing process

    • Manage all due diligence communication and data retrievals

 

  • Run complete market valuation of key targets

  • Manage selection and hiring of outside accounting firm for Q of E audit if applicable

  • Provide draft set of purchase documents for closing

  • Assist with selecting of M & A transaction attorney for closing if applicable

  • Provide 30 days post-closing assistance for operational/financial adjustments

  • Provide a list of targets for strategic add on’s to the initial platform                                                                              All done with client on the team as observer

Presentation

You can download a 20 page presentation of this package by clicking the red button below

Call The Enginuity Group Today 1.877.211.9773

How difficult could it be? If you have the money and know something about the industry, it should be easy, right?

If that is what you think about going into your first acquisition, we have a bridge to sell you.

 

Certainly, you can read all you want, scan the listing sites, read the rosy descriptions of the companies the brokers have written for their clients' companies, download the NDA, meet the seller and make an offer. Or you decide to approach a company that is not on the market to show your interest in acquiring it. What possibly could go wrong?       

 

Plenty!

 

If only we knew in 1982 when we bought our first company, what we know now with four decades of buying companies under our belt, we would not have made as many avoidable mistakes that cost us dearly along the way. But we did make the mistakes as we all do when we start out in most endeavors in life that we are not experienced in. It is not a reflection on your intelligence, but it is that most multi facets endeavors require guidance and experience to navigate the traps to be successful. We learn from either trying, failing and trying again or we can call in seasons professionals who have done this for decades and learn from their experience.

Because of this experience, our company is called on by both large private equity firms as well as small solo entrepreneurs to assist them in acquiring their first company. And because we have being doing this so long for so many search funders and other first time company buyers, it became clear that the most effective tool we could provide to this type of buyer is not just a traditional "buy side" service, but to develop a package of services nicely wrapped to provide to that group in a way that the entrepreneur can learn this fine art while observing us and interacting at various stages of the process. Afterwards, he/she should be able to carry forward with the first add on acquisition and a second and so forth on his own or with minimum help from outside professionals.

With this Package, You will Learn

  • How to master plan the long term objectives

  • How to conduct industry and company research

  • How to develop the target universe database

  • The fine art of approaching a CEO of a company that is not "for sale"

  • How to structure an offer that is creative to attract that Not for Sale company to want to sell to you

  • How to conduct summary screening of several targets

  • The key red flags that you should be on the look for

  • To identify a hidden gem waiting to grow

  • How to negotiate with an unrealistic seller

  • How not to overpay for the acquisition

  • How to balance purchase price with deal structure

  • When leverage is too much for the deal

  • How to structure the transaction for a "win win"

  • How to organize and manage a master data room

  • How to structure the processes for speed & efficiency

  • How to quickly determine market value for screening

  • What to do in the first 30 days post closing

Package Price

The fee charged for the entire package is based on the target size of the acquisition which ranges from  about 10% for a very small acquisition to less than 2% for a $50,000,000 target acquisition price due to economies of scale as the acquisition size increases.

         A $5 million purchase is priced at 6.5%

         A $10 million purchase is priced at 4.3%

         A $25 million purchase is priced at 2.9%

Most paid at closing, except for a nominal:

  •         Mobilization/Set Up advance

  •         Monthly retainer advance