Growth through Acquisition
An important growth vehicle for distributors may be acquisition of another similar distribution company. Consideration should also be given to acquisitions that create diversification and reduce risk. Also, distributors may consider merger as an opportunity to cooperatively grow the business with reduced overheads.
At a certain point a distributor may consider sale of the company. It may be a point in the history of the business where a change of ownership makes good sense. There are times when this can be done in an orderly fashion and others where there is a stress on the business that may require more immediate action.
Another consideration is a partial sale of the company designed to add capital for expansion or to allow a shareholder to exit the business. This also offers an opportunity for the owners of the company to monetize equity they hold in the business, while still retaining the operating responsibility and the opportunity to continue to benefit from the growth of the company.
The Distributor Board can help the owners of distribution companies in both a consultative / advisory role and, if required, function in a business broker capacity to assist with the finding of an acquisition candidate(s); finding potential buyers of the company; or, identifying potential partners, such as private equity companies.
The Distributor Board can undertake the following Merger & Acquisition Activities:
- Acquisition Candidate Search
- Marketing the Company for Sale
- Negotiating Merger Relationships
- Finding Potential Private Equity Partners
- Assist in the Due Diligence Process
- Leading the Integration Planning and Implementation Process
- Identify Sources for Capital
- Identify Merger & Acquisition Deal Professionals