Buying a Company Course

Date 6 June / 4 October
Times09:30 - 17:00
Cost£595.00 + VAT (£714.00)

Course Overview:

Creating shareholder value through the pursuit of a successful M + A strategy has been shown to be a far from risk-free activity.   Buyers overpaying or using inappropriate financing methods can lead to destruction of value and in some cases financial distress.

The course covers topics of risk and return, process, investigation and integration as a practical guide to identifying and negotiating acquisitions.

Course Content:

The Drivers of Growth

  • Shareholder value
  • The company life cycle
    • The importance of directors recognising the value curve
  • Risk and return
    • Relating risk to the life cycle phase of the company / target
  • Product market growth and decline
    • Evaluating niches, substitutes, value in innovation

REVIEW:  Comparison and contrast of the lifecycle of three different companies, highlighting how success or failure with acquisitions has determined their fate

  • ICI
  • Debenhams
  • GKN

Growth through Acquisition

  • Assessing the alternatives
  • Investment
  • JV
  • Acquisition

DISCUSION:  Advantages and disadvantages of each approach

  • Determining the acquisition
  • Market objectives
    • Consolidating a fragmented market
    • Building the value proposition
  • Management issues
    • Assessing cultural fit
  • Price parameters
    • Knowledge of comparative deals
  • Opportunity cost
    • Is it a “now or never” deal

REVIEW:  The Ansoff Matrix, a handy way to categorise potential risks in acquisition strategies

  • Pitfalls to avoid
  • Realism of synergies
    • Risks of prediction, cost and achievement
  • Accounting standards
    • Who is the auditor, what principles are followed
  • Judging forecasts
    • Scepticism rules
  • Commercial factors
    • Target’s history
    • Recurring revenue
    • Intellectual property
    • Customer list

CASE STUDY:  Reviewing company information to arrive at a value, taking into account qualitative and strategic factors 

The Acquisition Process

  • Establishing acquisition criteria
    • Target size and affordability
    • Potential synergies
    • Market / competitor impact
    • Regulatory factors
    • Shareholder impact
  • Due Diligence
    • Investigation prior to offer
      • Public sources
      • Private sources
  • Verification
    • Contracts
    • Accounts
    • Pensions
    • Employee disputes
    • Litigation

CASE STUDY:  Reviewing summary information on a company to determine which areas need investigation and who should have responsibility for the task

  • Structuring the deal
    • Earn-out / deferred consideration
    • Non-compete undertakings
    • Warranties and indemnities
    • Disclosure letters

Acquisition Integration

  • Success / failure factors
  • The importance of the integration team
  • Earn outs and accounting issues
  • Incentivising key managers
  • Establishing clear reporting lines

What Redcliffe’s clients are saying about the course and our trainer

 “Plenty of anecdotal examples and case studies to make the points alive”

“Trainer provided fantastic real world examples that allowed us to understand topics in question to a greater evel

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at enquiries@redcliffetraining.co.uk.

Book and confirm your place

Course Cost

£595.00 + VAT

Looking to book more than one course? Please click here.

If you book and confirm multiple participants for this course in one order, we can offer you the following discounts:

  • 1-2 participants - full price
  • 3-4 participants - 15% discount
  • 5-6 participants - 20% discount
  • 7-8 participants - 25% discount
  • Over 9 participants - 30% discount