Our clients, most of whom we’ve worked steadily with for 5-10 years, are highly qualified, well-capitalized investment groups and corporations who retain us to conduct acquisition searches to identify and contact companies or divisions that meet their specific criteria. We take no fees from sellers.
We research and identify prospective sellers that meet a client’s criteria through personal business relationships, a continually updated, proprietary data base, purchased services, and individual and industry prospects provided to us by our clients.
We then individually and personally contact prospective sellers to determine whether the owners might be receptive to a transaction. Once we’ve determined that an owner is receptive, we engage them in further conversations to learn their goals with respect to selling and their company’s situation with respect to our client’s investment goals, and to communicate our client’s history, strengths and objectives. Our client engagement agreement allows us to disclose a client’s identity up front. Our goal in this stage is to identify a motivated seller who is a good fit for our client’s investment goals, which increases the likelihood of a transaction.
We handle communications with acquisition candidates in a quiet, confidential manner. We will not disclose a candidate’s response, identity or other information without their permission or a Confidentiality or Non-Disclosure Agreement. We respect the company’s need to maintain undisturbed employee, customer, vendor, lender and other community and industry relationships.
To further hone the feasibility of a transaction, we will seek documentation such as summary financial statements, market position, competitive advantage, customer concentration, growth potential, management team strength and the details of owner selling objectives.
Upon qualification, we will arrange an exclusive telephone introduction of the candidate to our client. Should both parties then agree to proceed, we will arrange subsequent communications and ultimately a face-to-face meeting between appropriate representatives from each party.
After a successful initial meeting, we remain available to support communications and the execution of a transaction throughout the acquisitions process.
The CorDeve Group represents investment groups and corporations whose investment objectives encompass full acquisition to investment as value-added partners with existing owners. Some clients seek candidates to become stand-alone companies and others are looking for synergistic add-ons to existing businesses.
We engage a limited number of clients whose acquisition criteria fit our focus, whose goals have minimal overlap with each other, and who are willing to retain us and work closely with us over time. Our clients specialize in varying industries, industry sub-sectors, geographic ranges, growth parameters, and transaction sizes.
We devote the time and effort to get to know each client’s history, goals, interests, investment criteria, portfolio, strengths and acquisition procedures.
Our deep knowledge of our clients and our ability to effectively assess the goals of receptive sellers give us the means to determine whether a seller prospect is a feasible match for a particular client.
We represent a qualified, motivated buyer
We represent only buy-side clients selected for financial capacity, a track record of timely transactions, and experience as a resource for successfully enhancing business growth and profitability.
We take no fees from sellers
The CorDeve Group does not seek or accept sell-side engagements and takes no fees from sellers. We require that clients give us their advance permission to disclose their identities and information to acquisition candidates as appropriate.
We are a confidential, no-cost alternative to public auction
In addition to saving the cost of retaining a sell-side broker or investment banker, prospective sellers avoid the negative impacts of a public auction that brokers and investment bankers use to seek buyers. This public disclosure can alert competitors, vendors, customers and employees that the business is for sale.
Furthermore, many qualified buyers refuse to participate in auctions, viewing them as a waste of money, time and effort to complete the due diligence necessary to submit a competitive bid, most times to lose the deal. Additionally, many investors would rather be introduced to qualified sellers on an individual basis, with the opportunity to engage in one-on-one meetings to get to know the owners or managers and the culture of the company for purposes of working together to determine the best ways to increase value.
We maintain strict confidentiality throughout the process
We respect an acquisition candidate’s need to confidentiality both within and external to the company from the initial contact throughout the acquisition process. We establish and maintain discretion and confidentiality and will not disclose a prospect company’s response, identity or information without permission or a Confidentiality or Non-Disclosure Agreement.
The right buyer for a particular seller depends upon the seller’s goals
The type of investor that is right for a company seeking to sell depends upon the specific objectives of the owners with respect to company growth, and their own goals for liquidity, succession, involvement, continuing control and financial upside potential.
Strategic and financial buyer trade-offs
Corporations that seek add-ons to their existing businesses will target companies or product lines that fit their strategic plans and provide synergistic, value-added growth to their existing offering. The synergies sought may be in any number of areas including products, manufacturing processes, operational efficiencies, capacity improvements, marketing and distribution, supply chain, customers, markets and geographic coverages. In turn, the seller can achieve immediate liquidity and possible management succession.
Investment groups that seek stand-alone or platform companies may not require specific synergies and are more likely to enable business owners to retain independence and secure an opportunity for upside returns. In these cases, owners of the acquired companies typically retain more management control for themselves or their management team and gain a combination of liquidity and the opportunity to share in the upside potential. In addition, their companies retain organizational identity, while obtaining strategic and financial support from the investor.