Access to Acquirers and Investors
Reaching the right potential acquirers or investors is the most important factor in creating competitive tension in any transaction process thereby driving the valuation and likelihood to close. The most successful transactions are those that surface the one acquirer or investor who sees more value in a business than anyone else, the Outlier. Failing to access the right bidders has a profound impact on the ultimate success of the process.
Accessing this most motivated bidder – the Outlier – requires both identification and engagement.
Identifying the Outlier
Strategic insight is necessary to scope out and identify those bidders who are likely to value a business the most. For strategic acquirers (operating companies), this requires a keen sense of how a potential bidder will perceive potential synergies with a business. For those that are listed on a stock exchange, it requires a sense of how investor sentiment will impact their stock price if they announce the acquisition of that particular business. For financial acquirers, it requires an understanding of a particular fund’s domain expertise, their fund vintage, their fundraising status, the investor’s return expectations and the general state of the credit markets.
Engaging the Outlier
The ability to convey a compelling value proposition to the right decision makers is needed to convince a potential acquirer that they should expend the time, effort and expenses required to enter a bidding process with a client’s business. We can better convey our clients' value and risks having been principal acquirers ourselves.
Our team has been identifying and engaging these Outliers on behalf of our clients for over twenty years.
Global Access: The Best Partner is often Beyond Our Borders
Globalization is an irreversible economic force. Nowhere is this truer than in the capital markets. As ever greater pools of capital are seeking returns in the private markets, the capital available to private businesses is increasingly abundant and inexpensive. However, the best acquirer or capital source is rarely in the neighbourhood. Valitas’ team represents 10 nationalities and speaks 8 languages. We have spent our entire careers facilitating cross-border transactions.
The Valitas team has the requisite international expertise, networks and cultural understanding to conduct complex cross-border transactions. Our search for Outliers is not constrained by geography. We maintain regular contact with hundreds of professionals at greater than 400 private equity funds and family offices in the US, Europe, Asia, the Middle East and Canada, all targeting Canadian private businesses. We also maintain active dialogue with many multinational consolidators across a broad range of industries. Our ability to access and negotiate with international partners stems from our institutional training, knowledge of international business policies, languages and cultural understanding.