Proprietary Acquisitions

Acquiring a company that makes strategic sense at a reasonable value can create significant shareholder value. The combination of controlling the pace of the process, having unfettered access to due diligence and having the flexibility to structure the consideration paid to the vendor, significantly mitigates the inherent risks in acquiring that company. Over the last several years, we have seen a marked evolution in the marketplace toward:

  1. a growing universe of financial buyers that have been able to effectively compete with strategic buyers on valuation, and
  2. a proliferation of intermediaries that are extending their reach into a broader buyer universe.

As a result, more businesses are being sold through broad, competitive auctions and proprietary acquisitions are becoming increasingly challenging. However, some of the best opportunities are those companies that are not actively auctioned. Most business owners are not actively looking to sell, but many would entertain a reasonable proposal from a credible buyer. These passive sellers are harder to identify, but typically represent greater value creation opportunities. Valitas has the process expertise, purpose-built resources and vendor management skills to surface these passive sellers. By remaining active and engaged with business owners, we are well connected to the Canadian private market.

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