An expert M&A advisor for a flawless acquisition plan.

"Approximately 70% to 80% of acquisitions fail" according to Larry Selden and Geoffrey Colvin in a Harvard Business Review article (June 2003). Why? First, most companies don't have a well thought out acquisition plan. Second, most companies overlook key issues that surfaced in due diligence. Third, most companies over estimate cost and revenue synergies.

Swingbridge can guide a company through the development of a well thought out customized acquisition plan including a full business valuation that clearly outlines the parameters and objectives to be garnered in an acquisition.

Parameters and Objectives

  • Acquisitions type (Growth in core market vs. diversification opportunities)
  • Acquisition purpose (New customers, company capabilities, new geographies)
  • Determination of minimum equity hurdle rates
  • Expectations in terms of price and structure
  • Development of an internal and external acquisition team
  • Acquisition location

Development Process

Once an acquisition plan is accepted, Swingbridge can leverage management's time by leading a search for companies matching the characteristics included in the plan. Swingbridge has developed an extensive database of operating companies, including cursory financial information. Once Swingbridge has narrowed the list of companies, management can then decide which company or companies to focus the attention on. Swingbridge can then guide a company through the "letter of intent" phase.

The due diligence process and integration are the most important phases of an acquisition. The purpose of the due diligence phase is to validate the premise for making the acquisition. Most companies are blinded by issues raised during this process due to the emotional attachment created with the target. Swingbridge has developed a proven due diligence process for acquisition and plays a key role in the process. Financing can also be arranged by Swingbridge Capital.

During the due diligence process, the transaction's economics will be confirmed or proved incorrect. Swingbridge's acquisition model will validate transaction expense and revenue synergies.

Integration of assets, systems, management, human resources. Customer cross-selling is a vital step to get right "out of the gate." Swingbridge will assist with this process.