Walden M&A’s robust strategy for buy-side M&A transactions is a direct response to the growing demand from strategic buyers seeking professional assistance in identifying and acquiring businesses.
This initiative reflects Walden M&A’s commitment to offering comprehensive investment banking-level services, extending the firm’s expertise beyond sell-side representation to actively guide companies through the intricate process of acquisition.
Behind Walden’s Buy-Side M&A Transactions Program
“Larger companies aren’t marketed through open marketing programs. They’re typically closed,” said Walden M&A President John Phillips. For middle-market companies without in-house corporate development teams, this direct approach can hinder effective transactions. This informed the Walden team’s decision to establish a structured buy-side M&A program.
Walden M&A steps in and closes this critical gap by providing a professional, structured, and methodical search process, similar to what a Fortune 500 company’s internal team would execute.
A Retained Search Approach
Walden M&A’s buy-side process is a meticulously structured “retained search.” The process begins with a deep understanding of the buyer’s specific objectives and criteria.
This approach involves more than just identifying the right type of company. It also includes the desired geography and the strategic reasons for the acquisition. Motivating factors can include expanding the geographical footprint, diversifying revenue streams, or entering adjacent industries.
“We are providing a very structured, methodical search with a deadline approach,” Phillips said. “This includes weekly deliverables as well as success milestones.”
Walden M&A identifies a comprehensive list of target companies that meet the buyer’s qualifications but are not actively seeking a sale after establishing the criteria. The Walden team then strategically engages with these potential sellers.
This proactive engagement, even with companies not on the market, can lead to superior outcomes by marketing the buyer’s legitimate interest and outlining the benefits of a potential merger.
“I’m marketing to potential sellers all through this process,” Phillips explained. “I am selling to them why they should talk with my buyer, then why it’s in their best interest to sell to my buyer, and then they all have to agree to merge.”
Advantages of Buy-Side & Sell-Side Synergy
Having strong buy-side and sell-side programs uniquely positions Walden M&A in the business-level transactions market. The firm’s extensive network of relationships with private equity groups, family offices, and corporate investors, cultivated through sell-side activities, directly benefits buy-side clients.
“Along the way I’m going to find sellers who want to sell, but the buyer doesn’t want to buy,” Phillips said. In those cases, Walden M&A can take those sellers to market for other potential buyers, creating a synergistic effect.
This dual capability provides a deeper understanding of market dynamics, seller expectations, and buyer goals. All of these factors contribute to a more effective acquisition search.
Walden M&A leverages existing relationships with attorneys, accountants, financial planners, and industry associations. This helps with increasing transaction value through comprehensive insights, particularly in specific verticals like manufacturing, technology, business services, transportation, distribution, and logistics.
When to Engage a Buy-Side M&A Advisor
For businesses or investment groups contemplating an acquisition, Walden M&A encourages early engagement. “If you’re contemplating a buy-side transaction, the time to reach out and start talking is now,” Phillips said. Walden M&A serves as a valuable resource, offering expertise in market understanding, economic factors, transaction processes, and industry insights.
The Walden M&A team can assist in developing a comprehensive acquisition plan. Walden principals provide education on industry trends, transaction volumes, and valuation multiples, all before requiring any formal engagement. This allows potential buyers to craft a well-informed strategy, ensuring a successful and efficient acquisition process in a competitive market.
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