Outsourcing Buyside M&A Research
Whether your acquisition strategy is well established or yet to be developed, you are looking for large or small investment opportunities, UK or abroad; you need data to inform your decision making. Investing in your research (internally or outsourcing) is your way of gathering the data you need to execute your plan and successfully transact. Could outsourcing your buyside M&A Research help you?
When to outsource: The challenges of conducting buyside M&A research in-house
Many acquisitive companies and corporate finance service providers don’t have a dedicated in-house M&A research team. Those that do have in-house capabilities may still choose to bring in outside resources to help them deliver high-quality research. Outsourcing can provide solutions to:
Staying in the market
To build a sustainable M&A pipeline it is important to stay in the market. The whirlwind of day to day business needs; executing a transaction, refinancing a current investment, fund raising or generally running a business; can take executives and principals away from generating new investment opportunities. Outsourcing allows executives to focus on their core responsibilities. It also ensures uninterrupted awareness and access to strategic opportunities.
Access to the whole market
It is important to have access to the whole market to uncover the best opportunities. We know that the number of business owners who would seriously contemplate a sale – given the right approach – far outweighs the number of companies actively looking to sell. M&A research should therefore include the search for both “on” and “off” market opportunities. Equally, the best opportunities may require you looking outside of your current market or geography for example. In these instances, a dedicated outsourced M&A research provider will be invaluable and will provide you with access to their multi-sector data and insights regarding both “on” and “off” market companies.
Keeping your strategy confidential
M&A research is twofold – the identification of suitable targets followed by understanding a target’s motivation to sell. For some acquisitive companies confidentiality in the latter is key. Whilst not impossible, it is often tricky to engage with targets using an in-house team and maintain confidentiality. An outsourced M&A Research provider will be able to reach out on behalf of a “Client” to understand appetite for an exit and where relevant execute a Non-Disclosure Agreement.
Speed & Agility
As your needs change or your strategy shifts you need to respond with speed and agility. Outsourced M&A research providers are engaged and motivated to meet your needs can typically move much quicker than an internal resource
Conclusion
Acquisitive companies that derive the most success from research are focused from the outset on maximising the benefits. Outsourcing your buyside M&A research requirements will provide you with access to a specialist set of skills, a wider market and will be delivered to a timeline that suits you.
Consider what impact outsourcing your Research could have on your acquisitive ambitions and your productivity, profitability and growth?
