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One of the greatest concerns for the buyer in any acquisition is whether, and under what circumstances, revenues and profits generated by customers in the past will continue into the future. And if they continue, at what rate will they continue?

Market conditions and the basis for competition shift over time. Because of this, historical information may or may not be a reliable indicator of a company’s upside (or downside) potential. Several key questions must be answered in the evaluation process:

  • Quality of market position: Does the company sell to the top or bottom of the market and what is the trend? Are they at the top or trough of a cycle?

  • Understanding the customer base: What are the trends among key customers that provide the best margins? Are they losing or gaining?

  • Understanding competition: Does the company lead or lag the market? Why? What is the basis for competition? Is the company positioned for the future? Will its core strategies stand up?

  • Market potential: Does the acquisition enhance your company’s revenue and profit opportunities?

Approach

We evaluate markets, customers, product mix and pricing strategies to arrive at a balanced assessment of the revenue and market potential of both the candidate company and the combined entity. Areas of examination and related outcomes might include:

  • Examine markets and customers, purchasing trends and competitive pressures to assess the probabilities that the revenue streams will continue

  • Evaluate internal sales and sales management capabilities to delineate customer development, retention and expansion opportunities

  • Review distribution systems and strategies to develop a qualitative view of expansion opportunities and competitive strength

  • Assess product and service mix to define distribution channels and the future expansion opportunities

  • Evaluate pricing to delineate strategic positioning

Our People

While much of the process is quantitative and analytical, the key differential with Merger & Acquisition Services, L.L.C. is that only Senior Level personnel will be assigned to your assessment. Our principals average over 25 years of experience in developing, assessing and managing strategy in a wide variety of industries and sizes of organizations. We helped many of our clients in reinventing industries and regenerating strategies.