Question 1

We have lots of acquisition opportunities crossing our doorstep—why do we need to build a larger funnel of acquisition targets?

Accepted Answer

There is a reason why certain companies are approaching you, and others are not. It's like hiring a good salesperson—if they're already on the market and 'looking', there is probably a good reason why. Sometimes the best acquisitions we have sourced for clients were not on the market (and sometimes even the owners of the acquisitions didn't know they were on the market either until we approached them). One thing for certain, is that you can never have enough of a frame of reference when pulling the trigger on an acquisition—you really get a true sense of how good an opportunity is when it is lined up against a range of alternatives. When that happens, the gems really stand out (as do the dogs). At WDC, we work as your dedicated diamond miners.

Question 2

We have an internal person who can call targets, why do we need to hire someone externally?

Accepted Answer

The first reason is that many companies view calls from competitors as nothing short of corporate espionage—someone just fishing for their private information. Even if they do respond, they typically end up sharing far more sensitive and valuable information with your M&A Advisor than they would with your team. Working with an experienced Buy-Side M&A Advisor also allows you to tap into the Advisor's decades of transaction experience and their knowledge of specific acquisition opportunities in your space (or those of their long-standing relationships with hundreds of other M&A Advisors, lawyers, accountants etc. who provide leads from their own networks). The likelihood that an internal resource gets bogged down is quite high. When engaging WDC, you get an entire team working on your project, all with different tool kits, frames of reference and unique 'tricks of the trade'. Regardless, if you already have an internal team put together, we are always happy to collaborate, creating an even more dangerous team, all rowing in the same direction.

Question 3

What's the timeframe until we are able to buy our first company?

Accepted Answer

There is typically a 'getting to know each other' phase at the front end of our engagements, which is critical to ensuring our efforts are 100% aligned with your goals and growth objectives. We get to know what you like, and what you don't like, and cater our market approach accordingly. During this few week period we analyze your financials and operations, and usually provide some good insights along the way that shape the acquisition strategy. Once we are up and running, we typically uncover fresh targets right out of the chute, but we prefer to do some preliminary qualification and due diligence before arranging any calls or meetings (this keeps your team from getting bogged down on zoom calls).We focus on quality, not quantity. Once a qualified target comes up, we typically see a closing process ranging anywhere from 60-120 days on average.

Question 4

How do we get updated on your progress in the market?

Accepted Answer

We have invested in and implemented in an advanced cloud-based CRM system with which we track all of our outreach to and interactions with targets on your behalf. We generate regular, highly detailed reports on our activities and progress (typically weekly or bi-weekly).

Question 5

Do you source targets outside Canada?

Accepted Answer

We have sourced acquisitions from Canada to China and everywhere in between. If you need to shore up your business in another market, we are primed and ready to hunt for you anywhere. We have partnerships with M&A Advisors on every continent who can augment our search and offer clients for sale in their direct networks.

Question 6

How do we finance these acquisitions?

Accepted Answer

We will analyze and help you optimize your capital structure for the short, medium and long term, and liaise with your bank lenders, equity investors, or other backers as needed to help get the financing in place (if applicable). We have had instances where a client was unable to finance an acquisition with their existing bank, but after WDC did a proper, comprehensive "work-up" and presentation of the acquisition opportunity, the same bank provided full financing (and more).

Question 7

How many buyer targets are you going to reach out to?

Accepted Answer

We prefer the laser to the shotgun. Many M&A Advisors employ the "spray it and pray it" approach, sending out teasers to hundreds or even thousands of targets on email lists. At WDC, we typically focus in on a well curated list of less than 100 targets, employing a "one-to-one" approach, communicating directly to C-level executives, board of directors, or trusted advisors at the purchaser. Buyer targets can tell the difference and respond more positively to this more thoughtful approach.

Question 8

What is this going to cost?

Accepted Answer

We work based on a balanced blend of an ongoing monthly Work Fee combined with Success Fees (a percentage of the value of the target purchased, paid on closing of successful transactions). This keeps us driving to build a deep, well-qualified funnel of acquisitions (which you own), and also ensures we remain highly motivated to get deals closed efficiently. Our clients have remarked that our experience and expertise has kept them out of trouble and helped them avoid costly mistakes (which the WDC team have seen time and time again). In a nutshell, the extra investment in engaging WDC in the short to medium term should save you a TON in the long run.

Question 9

What about integration of new acquisitions?

Accepted Answer

We can nott do everything, but we can certainly work with your HR, Operations, Finance, Sales, and Marketing teams to plan for integration of your acquisitions. We like to use the due diligence process to touch on all of these key functional areas so that when the closing date arrives, your team is not scrambling. We surround you (if needed) with equally minded and efficient lawyers, accountants etc. to make sure your support team matches your company's stage of growth.

Buy-Side M&A Advisory Services

Below we answer some of the most common questions we are asked by companies looking for a "Buy-Side" M&A Advisor, which we hope will provide some valuable information and help you understand how WDC works (and our secret sauce).