Fairgrove works with corporate clients, private equity firms and other institutional investors to expedite mergers, acquisitions and divestments via a range of commercial transaction services. Our analytical framework includes assessments of market size, growth, and segmentation, competitor benchmarking, customer satisfaction, and drivers of profitability. In addition to assessing the attractiveness of a deal, our experience as strategy consultants allows us to make value-enhancing recommendations to buyers and sellers.

 

Commercial due diligence

We work with corporate clients and private equity firms to assess the commercial attractiveness of acquisition targets. Invariably this means reviewing the target company’s competitive position within its market(s), and analysing the assumptions behind the revenue, gross profit and EBITDA projections in order to comment on their achievability. We also assess the target company’s strategy, making recommendations where appropriate. Our action list for management and investors can be an integral part of the company’s 100-day plan.

Vendor commercial due diligence

Sell-side due diligence can significantly improve valuations and transaction completion times. While working for the seller, we assess the business as would-be buyers, subjecting the Information Memorandum and its financial projections to the highest levels of scrutiny. While evidence-based quantification of upside opportunities can result in superior valuations, our sell-side work often results in downward revisions of company forecasts and, in rare cases, a complete deferral of the transaction or a revision of the company strategy. Fairgrove’s presentations are renowned for being incisive, coherent and impartial – critical attributes in expediting the sale of a business.

Refinancing support

Our approach to commercial due diligence can also be used to help businesses raise additional funds (in the form of equity, mezzanine or senior debt) to accelerate growth. We assist clients in quantifying the returns available to potential investors and lenders by analysing the key drivers of profitability and cash flow.

Acquisition Target Search & Screen

We are often asked to help clients find bolt-on acquisitions for their existing businesses. Our approach involves identifying and weighting quantitative and qualitative purchasing criteria to produce a shortlist of potential targets. We will then investigate each target’s likely availability and, where appropriate, facilitate introductions.

Readiness For Exit

Presenting a business for sale too early can have damaging long-term consequences. We work with sellers to ensure that their companies are ready for sale when market conditions are at their most favourable. This involves reviewing and revising the business plan and the assumptions behind the financial projections until they are sufficiently comprehensive and robust to stand up to rigorous due diligence. Where appropriate, our report can subsequently form part of the sellers’ information to prospective buyers.

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