Phase I – Company Review and M&A Strategy
2020 works closely with our client to review their business lines, services, markets, geographies and clients. We take the time to understand your strategic plan for not only how you plan on expanding into new services, markets and geographies, but more importantly, why.
When then use this information to develop an M&A focus and strategy that identifies specific types of companies for acquisition, including suite of services, markets, geographic location, as well as company size, (revenue and number of employees) as well as our client’s potential purchase price criteria.
Phase II – Identification, Research and Screening of Target Companies
Using our proprietary database of more than 700 companies, and our personal knowledge and network with these companies, 2020 researches and identifies and presents a list of targets and company profiles that we believe would be a good potential match for our client’s strategy and criteria.
We then review this list with our client to prioritize our efforts before we proceed with outreach.
Phase III – Outreach and Solicitation of Interest Offers
2020 will then conduct outreach to the targeted firms, present our client’s value proposition and make inquiries as to whether or not they are interested in proceeding further with an introductory conversation.
Acting as the intermediary between our client and the seller, our team manages each aspect of the process including requesting financial and operational information from the seller, scheduling meetings, as well as an independent review and assessment of the company, along with an initial M&A market valuation and possible purchase price for our client’s consideration.
Finally, we work with our client to negotiate and craft a Letter of Intent (LOI) that meets both side’s expectations and goals.
Phase IV – Post-LOI Due Diligence, Purchase Agreement and Close
Once an LOI is signed by both sides, 2020 supports our client with the due diligence process, as needed, including collection of requested materials from the seller, and support to our client’s due diligence accounting and M&A legal team, leading to a successful close.