Buy-Side Advisory

Western Reserve Partners’ professionals have executed more than 50 buy-side acquisitions over the course of their careers. Furthermore, our experience in selling 200 companies provides us first-hand insight into sellers’ motivations and tactics. Western Reserve has the depth of expertise and resources necessary to negotiate the purchase of a company while simultaneously raising the capital to finance the acquisition. These two aspects are interrelated as the financing has critical implications in negotiating an acquisition. The most critical question is ultimately, “Does the acquisition, as priced, structured and financed, make sense for our client?” We would rather advise our client not to proceed than recommend an acquisition which would later be regretted.

As we work with our client to acquire, and often finance an acquisition, our work generally includes the following steps:

Assess Value
We analyze the target to determine what its market value is likely to be. Then we evaluate what the target is likely to be worth to our client and how the acquisition could be financed. Only if the value to our client is greater than the market value and the transaction can be properly financed do we advise our client to proceed.

Conduct Due Diligence
We work with our client to study the target, especially mindful of items effecting valuation and financing. The challenges presented by post-transaction integration receive our special consideration. Our experience has taught us that the seller is not likely to highlight problem areas or understate positive ones.

Secure Acquisition Financing
We are often engaged to assist our clients in securing financing for the acquisition. We arrange the financing simultaneously with the purchase negotiations as the two are closely interrelated. Our objective is to allow our client to negotiate the acquisition with the full understanding of the amount, cost, terms and conditions of the financing.

Negotiate Acquisition
Our extensive experience makes us experts in negotiating the various aspects of acquisitions. We apply this knowledge on our clients behalf, along with our due diligence, market intelligence and financing expertise, to assist in purchase negotiations. At this stage we continually consider whether the totality of the acquisition price and terms make sense for the client. If the answer is “no,” we do not want to allow the “momentum of the deal” to push our client toward a closing.

Negotiate the Final Purchase Agreement and Close the Transaction
As in sell-side engagements, we work “hand-in-hand” with our client and his or her lawyers and accountants to negotiate the final purchase agreement. We typically work concurrently on closing the financing to fund the transaction.