Strategic Buyers approach M&A differently due to varying risk tolerance, timing expectations, and due diligence processes compared to Private Capital Investors. It’s essential to acknowledge and adapt to these differences, as there is no one-size-fits-all approach. One80 is here to partner with retail brokers in identifying these distinctions, especially when dealing with existing clients.
Strategic Buyers adopt a distinct approach for several reasons:
- They often possess an in-depth understanding of the target company’s operations and management team.
- Major sections of the due diligence may be performed with internal resources.
- The reliance on formal reports is reduced.
- In cases where the target’s business aligns with the buyer’s, there’s a profound grasp of the target’s operations and financial metrics.
- Expectations and timelines will differ from the normal PE process.
One80 possesses the expertise to discern the nuances that facilitate tailoring the underwriting process for the benefit of Strategic Buyers. Some of the advantages include:
- Enhancing clarity in the quoting process to ensure all parties understand the deliverables.
- Providing an upfront data room checklist.
- Utilizing Representation & Warranty underwriting material to identify and quote other required lines of business.
- Allow written responses for some questions rather than requiring everything to be addressed on due diligence call.
Our approach is designed to align with the buyer’s process, synchronizing with the deal timeline and averting last-minute coverage or diligence complications. We also proactively identify issues early in the process to allow for additional diligence or purchase agreement negotiations.