Directed Search

Adams & Chebalo M&A Acquisition Directed Search service is a structured process with a clearly defined Compass And Pencil On A Mapmethodology that produces results. We use a team approach and aim to develop a sound working relationship with your firm and to be regarded as your own “internal” M&A team.

Adams & Chebalo develops an acquisition strategy for each company based on the firm’s individual business strategy, budget and expansion plans. The Directed Search process starts by executing a Situational Analysis to formulate a specific business and financial profile sought by the client. As opposed to our Sweep Search, A&CM&A uses a more dynamic and active search techniques to identify companies meeting your criteria. This includes:

  • identifying the spectrum of potential acquisition targets matching your strategic growth objectives
  • negotiating all aspects of the deal with prospective sellers, and
  • oversight of the due diligence and transaction closing process

Adams & Chebalo’s team of experienced intermediaries understand the complexities and risks involved in acquiring a company. We work with clients to manage the process and control potential risks by providing sound guidance and judgment based on comprehensive research and experiential execution.

If you have not already identified an acquisition target, Adams & Chebalo M&A will develop a comprehensive list of national or international prospects comprised of companies that are actively available, as well as those signaled “not for sale”, typically acquired through strategic approaches by proactive buyers. On the other hand, if you have already identified an acquisition target or targets, we will approach the acquisition target and negotiate on your behalf. Additionally, we will provide valuation guidance based on the asset base, adjusted EBITDA, earnings and assessed cash flow. In addition, we will structure the proposed transaction based on mutual agreed upon metrics. Finally, we ensure that the due diligence process is efficiently and effectively managed.

Directed Search is typically funded through a moderate retainer to cover ongoing expenses and a success fee payable upon satisfactory completion of the M&A transaction, which allows credit for the retainer.

How We Search

For business owners in the middle and lower middle market, this program can be especially rewarding. Many times, business owners prepare their companies for sale in the future by improving their operations or product offerings through acquisitions. We will help identify those areas in which your company could be improved by acquisitions, design an acquisition plan, and help you grow your company to improve your future valuation.

To accomplish a directed search on your behalf, we would proceed with the following steps:

  1. We will appoint one of our Directors to be your point of contact.
  2. Your contact will coordinate with you to fully understand your target criteria–to include size, geography, niche of industry, and strategic purpose.
  3. The Director will then exhaust our databases and alert our current industry contacts to the desires of a new buyer. Any leads generated from this activity will be used as the beginning of a target list.
  4. At the same time, the Director–with the help of an analyst–will generate additional businesses matching your criteria. To secure owner contact information, we will use our proven and refined methods–cold calling, direct marketing, email marketing, on-site business meetings, trade shows, and recruitment of industry experts for warm introductions.
  5. Once we have a workable list of potential targets, we will contact the owners directly. We will use agreed upon language to describe the opportunity to the owner, request a conference call introduction, and start to gather relevant operational and financial information on the company.
  6. For each target that agrees to consider an acquisition, we will assist you in the areas desired, to include:
    • Writing a report on the target (“Confidential Business Review”)
    • Gathering due diligence documents
    • Earning the owners trust to assure closing and assist in the deal negotiation
    • Creating and maintaining a data room
    • General coordination efforts

Throughout this process, we will coordinate with you using weekly scheduled phone conversations and metrics to clearly explain how our cooperation is progressing.