How do I find suitable acquisition targets?

Start with clear strategic and financial criteria. Market mapping can then identify businesses that fit those criteria, including potential targets that have not begun a formal sale process.

How do I know what to pay?

Comparable transactions and financial performance provide evidence, but price also depends on the target’s prospects, risks, strategic fit and the structure of the deal. The key is to test the assumptions behind the investment case.

Should I approach a business that is not for sale?

It may be possible, provided there is a credible reason for the approach and it is handled with discretion. The proposition needs to reflect what could matter to the owners, as well as what the acquisition would achieve for you.

What should I consider beyond completion?

Consider how the business will be led, funded and integrated, which relationships need protecting and what must happen for the expected value to be realised.

Buying a business

Acquire with a clear purpose and a fuller view.

An acquisition can accelerate growth, extend your capabilities or open a new market. It can also create considerable risk if the opportunity is judged on price or apparent fit alone.

Heligan’s Corporate Finance team helps business leaders develop an acquisition strategy, identify and approach suitable businesses, assess their value and negotiate a transaction. Our advice combines deal experience with sector research and market intelligence, so you can make decisions with a clearer understanding of the opportunity.

Discuss your acquisition plans

What does the acquisition need to achieve?

The right target depends on the future you are trying to build. You may be looking for a new capability, access to customers, geographic reach, greater scale or a stronger position in your market.

Before searching for businesses, we work with you to define the strategic case and the criteria a target must meet. We also consider the practical questions: what you can fund, what you can integrate and which risks you are prepared to take. This creates a more disciplined basis for assessing opportunities as they emerge.

From growth ambition to a successful acquisition

Define the opportunity

We clarify your objectives, acquisition criteria and priorities. That includes the capabilities or market position you want to gain and the conditions under which a deal would create value.

Map the
market

Using sector research, intelligence and relationships, we identify potential targets, including businesses that may not be actively for sale. We assess which opportunities warrant closer attention before an approach is made.

Assess
the fit

A target needs to make sense commercially, financially and operationally. We help you evaluate its performance, prospects, valuation and strategic fit, while examining the assumptions on which the acquisition case depends.

Engage
and transact

We plan a considered approach, manage discussions and support valuation, offers, negotiation and due diligence. Throughout the process, we help you weigh price against risk, deal structure and the likelihood of achieving your intended outcome.

Plan for
what follows

The value of an acquisition is realised after completion. We encourage early consideration of leadership, customers, culture, operations and the investment needed to bring the businesses together. The acquisition case should remain credible once the transaction has closed.

Look beyond the asking price

Before committing to an acquisition, you need to understand both what makes the business valuable and what could prevent it from delivering the expected return.

Questions may include:

How dependable are its earnings, contracts and customer relationships?
Which capabilities or market positions would be difficult to build independently?
How much of its performance depends on particular people?
What investment will be needed after completion?
Which assumptions about growth or synergies need testing?
Are there sector, regulatory or operational issues that could affect the deal?

Heligan Intelligence supports this work through research, analysis, sector knowledge and specialist perspectives. It helps us test the acquisition case and identify the questions that need answering before you commit.

Transaction advice with relevant sector insight

An acquisition has to be understood within its market. Our Corporate Finance team works across specialist sectors including Security Technology, Healthcare, Independent Financial Advisers, Infrastructure, Real Estate and Industrial Products & Services. Relevant sector knowledge helps us assess target quality, market dynamics and potential strategic value.

Financing is also part of the decision. Where appropriate, we can advise on debt options and work alongside your other advisers to consider how the proposed transaction would be funded.

Discuss your acquisition plans

Questions to ask before acquiring a business

How do I find suitable acquisition targets?

Start with clear strategic and financial criteria. Market mapping can then identify businesses that fit those criteria, including potential targets that have not begun a formal sale process.
How do I know what to pay?

Comparable transactions and financial performance provide evidence, but price also depends on the target’s prospects, risks, strategic fit and the structure of the deal. The key is to test the assumptions behind the investment case.
Should I approach a business that is not for sale?

It may be possible, provided there is a credible reason for the approach and it is handled with discretion. The proposition needs to reflect what could matter to the owners, as well as what the acquisition would achieve for you.
What should I consider beyond completion?

Consider how the business will be led, funded and integrated, which relationships need protecting and what must happen for the expected value to be realised.

This firm is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.