Success fee – 1% of Value of the Acquiring price
Duration – 3 to 6 months
Commitment Advance – Rs 200000 or 2000 USD
Mandate – Stamp paper agreement confirming the success fee
Here, the acquiring company buys the shares or the assets of the target company, which gives the acquiring company the power to make decisions concerning the acquired assets.
Who gets benefited?
- A company that wants to increase its market share and market coverage.
- The small size company is in direct need of capital.
- The company is trying to enter a new market segment with reduced entry barriers.
How to book this and what is the process?
Book your appointment to discuss your requirements with us. We will gather your needs and your entire plan. The action approach will be discussed and shared with you. Target companies/Investors will be reached using various methods. Our fee is towards getting the right target and for background research. We will sign the NDA and Mandate after agreeing with the terms.
Benefits of Acquisitions
- Adding value to the combined entity by eliminating redundancies and increasing overall revenues.
- Taking advantage of additional distribution channels that you can leverage more effectively with your products and services.
- Acquiring existing technologies and business processes, which would otherwise be extremely expensive to develop on your own.
- Accessing talented managers and employees without the need to engage in an extensive search and hiring process.
What do we do?
At SHS Advisory firm, we practice different strategies to reach the potential target based on your vision and mission. We have a huge client base and we consider it to be important to research deeply and use the upstream and downstream analysis approach to find the target. The list of actions that we follow are mentioned below:
- Create one-page marketing information to be sent to the target.
2. Conduct a meeting with our team to brainstorm ideas in order to fix the target companies sector, selection criteria, size, territory, methods of approaching and reaching out to them, etc
(a) Method 1- Identity platforms to get investor networking like BIZIT, bankerburry, SMERGER, etc. Then by paying a certain amount, we list our client requirements on these platforms and we continue with the process. This process is a time-consuming process with a lesser success rate. Each wrong connection leads to not just loss of money but most importantly, our credibility with the investors
(b) Method 2- The target company’s contact details can be collected by conducting intensive and detailed research and networking. We then pay and use various platforms like rocket reach, etc to get contact details
3. After the selection, we give our first pitch through call or email
4. If a potential is noticed in the first pitch, our investment banking associate will have a detailed discussion with the investor and will arrange a next round call with our management to explain the structure, our reasons to invest, methods, deal size, etc
5. Further calls or meetings are arranged with the client along with you either virtually or face to face based on the possibilities and interests.
6. Depending upon the interest to take it any further, our associate explains the investment details to the target then we do some valuation and evaluation.
7. We further discuss the terms, negotiate if need be, and come to final closure and start with the implementation.