Buyer Advisory Services

Crown Capital Advisors represents middle-market companies interested in acquiring product lines and businesses as part of their growth strategy, plant utilization plans, product-line expansion, and other strategic objectives. Crown also represents large public and private corporations who wish to acquire strategic middle-market companies and private investors and private equity groups who have a particular strategic build-up plan.

World class companies of all sizes recognize the need for strategic acquisitions in order that their business strategies can be implemented in a timely, efficient manner. Most acquisitions and mergers are not the "mega-mergers" on the front pages of business periodicals – they are very focused, strategic acquisitions of varying sizes accomplished to fill particular needs, such as:

• Brand development

• Expansion of product offerings

• Expand selling capabilities/methodologies (i.e. direct sales, distribution)

• Manufacturing advantages – cost / process

• Process R & D

• Diversification of customer mix

• Consolidation benefits

Consolidation benefits vary according to the circumstances, but generally fall in the following four categories:

• Manufacturing – the production operations of acquired companies are closed down and integrated into the buyer’s operations.

• Purchasing – raw material purchases are rationalized, saving several percentage points of cost.

• Cross-selling – acquired product lines are merged into the core channels of distribution, expanding sales and creating leverage with customers.

• Overhead absorption – general and administrative expenses are eliminated at the acquired company level.

 

Crown Capital Advisors’ practice is to work as an extension of the buyer’s management, assuming primary responsibility for the execution of program developed. Crown engages in discussions with the buyer to bring objectivity, focus and organization to the acquisition process. Crown discusses the buyer’s goals and objectives and alternative approaches to the transaction in order to gain a clear picture of the acquisition strategy and formulate focused acquisition criteria.

The next phase of our acquisition program is the search. Crown’s practice is to base our efforts upon a variety of information sources. In most cases, the use of a combination of computerized databases and specialized trade sources has proven most effective. One of Crown principal strengths is a detailed and exhaustive knowledge of what sources of data are relevant to our work. Our search operates as a process of elimination moving from the general to the particular through a series of stages in which each successive stage involves increasingly detailed and complete data concerning an increasingly small number of business areas and companies. Crown has found this to be the only cost-effective and efficient method for reducing the initial target prospect universe to a manageable number of specific prospective targets having characteristics suitable to the buyer’s objectives.

The next phase of our acquisition program is the search. Crown’s practice is to base our efforts upon a variety of information sources. In most cases, the use of a combination of computerized databases and specialized trade sources has proven most effective. One of Crown principal strengths is a detailed and exhaustive knowledge of what sources of data are relevant to our work. Also, for the sake of completeness, the search includes a conventional approach to other sources of active prospects, such as investment banks, brokers, etc.

Crown’s search operates as a process of elimination moving from the general to the particular through a series of stages in which each successive stage involves increasingly detailed and complete data concerning an increasingly small number of business areas and companies. Crown has found this to be the only cost-effective and efficient method for reducing the initial target prospect universe to a manageable number of specific prospective targets having characteristics suitable to the buyer’s objectives. From this process, Crown delivers for the buyer’s consideration a selection of qualified prospective targets.

Prospective targets are reviewed with the buyer and an initial target list is determined. Through research and various sources, Crown obtains detailed background information about the target, its owners, its products, its customers and its financial status. A target profile summary is then prepared, reviewed with the buyer, and a target prospect list is agreed upon.

Crown then directly contacts, on a confidential basis, the owners/senior executives of the prospect businesses that have survived our search and elimination process. Since Crown is already quite familiar with the target’s industry and its business and the types of prospective targets which will result in a successful transaction, this effort produces a significant number of active targets suitable to the buyer’s objectives, and who are interested in discussing a transaction similar to that which the buyer has in mind.

The buyer’s management and personnel must work closely with Crown during the process of determining whether a letter of interest should be offered. If a letter of interest is offer and accepted, the buyer’s management and personnel must also work closely with Crown during the due-diligence process and provide technical and other expertise in order to determine that the target fulfills the buyer’s strategic goals.

Crown advises the buyer during the negotiation process by evaluating alternative negotiating strategies. Crown’s assistance also includes structuring an appropriate transaction as well as preparing other analytical work that may be required. In addition, Crown can assist the buyer in raising acquisition financing.