Most companies that seek growth through acquisition have a firm foundation from which to spring. In today’s market however, finding eligible candidates to buy is hard – demand is high, supply is low, eligible candidates are not cheap and competition is fierce. Most businesses are doing great regardless of how tenuous our economy and international forces are from day-to-day.
What is Your Acquisition Strategy?
If you’re unsure, don’t be afraid to do the hard work!
We’ve learned over our 21 years at Tobin & Company, plus 14 more years in investment banking on Wall Street, that most CEO’s and boards are well-intentioned in their acquisition quest. And that those that fail, do so because they choose not to invest the time nor money essential to finding stellar candidates that can help catapult a conglomerate merger to geometric growth.
Why? Because CEOs and boards that are successful with acquisitions must have the courage to view their existing company with the same scrutiny and due diligence that they insist on from eligible candidates. A successful acquisition, after all, should be the melding of two successful entities into a dynamic force.
TOBIN’s focused expertise and vigorous analysis helps CEOs and boards assess prudent advantages and avoid risky blind spots. By implementing a highly structured, disciplined vetting process we reveal weaknesses and strengths of the buyer, as well as separately, of identified candidates. Then we strictly evaluate the combined strengths and weaknesses of each potential emerging entity.
We analyze every possible issue before actively pursuing potential candidates. As our process unfolds, we ask tough but necessary, sometimes even uncomfortable, questions. Our approach requires honestly, a long-term commitment and patience. We do this because too often we’ve seen buyers invest far too much time and money into candidates that would have been quickly dropped had they been subject to our rigorous investigation.
Quality Is Remembered Long After Price is Forgotten
Sifting through coal to find diamonds requires tenacity and fortitude. That starts with sure footing. That’s what our process does. We fill a market niche by servicing companies that need buy-side expertise but are not attractive to large investment banking firms. Tobin & Company helps clients buy complementary companies in the size-range of $3 million and $50 million to reap the benefits of greater scale and market power.