CORPORATE FINANCE Buy side Adv isor y Ser vices ADVISORY If you are a founder, shareholder, or manager of a business or division, and have considered expanding your business through a merger or acquisition, KPMG Corporate Finance can help. T here may be compelling reasons to consider acquisitions—the timing may be right to increase your presence within the industry by entering new geographic regions or by expanding the breadth or depth of your product and ser vice offerings. An acquisition may assist in addressing new or strengthening competitive forces or technological changes. Maybe you have decided to diversify your business or holdings and have identified related industries that will benefit from your existing expertise. Whatever the reason, KPMG Corporate Finance can work alongside you to evaluate your options as you seek to maximize the value of your business. KPMG Corporate Finance’s team of professionals has the experience and qualifications to assist you with the many issues and decisions you may face as you consider and pursue acquisitions. We advise our clients through each stage of the process, from formulating an acquisition strategy and identifying potential target, through negotiations, structuring the transaction, and assisting with the closing process. Reasons to Pursue Acquisiti ons There are a number of compelling reasons why a company may choos e to expand via acquisition: Expand Geographically•. To increase market presence some companies choose to expand operations in emerging regions, areas of reduced competition, or those locations that would allow the company to gain or further competitive advantage. Augment Product/Service Off erings. •Some companies are interested in pursuing acquisitions with a goal of being able to offer their existing customers the additional products or services of the acquired company , thus broadening your customer relationships and improving customer profitability. Expand Customer Base•.By acquiring industry competitors, companies are able to quickly expa nd their customer base, allowing for more opportunities to cross-sell the acquirer’s existing product offerings to these new customers. Recognize Operating Efficien cies. •Often, the acquisition of an industry competitor allows companies to increase the overall size and efficiency of their operations while bringing together a stronger and more diverse management team. Gain Current Tec hnology. •Some companies choose to acquire competitors that possess niche or specialized technol ogy that, once acquired, will help the company to differentiate itself from competitors. Command a Greater Va luation •.As companies become larger and more profitable they gain greater attention from both public and private investors and generally command greater valuations than those of their smaller competitors. Diversify Holdings. •Other companies or investment groups choose to diversify their business risks by expanding into industries in which they currently do not operate but which hav e similar characteristics to their existing operations. In these circumstances, companies typically seek platform inves tments that will allow them entr y into the desired market. The Acquisition Process There are several key phases of the acquisition process. The timing of each phase is situ- ational, but on average the total process ranges from six to nine months. Are you interested in growing your business through acquisitions?
