Buy-Side Representation

Step 1: Share & Sign Off On Expectations.

As with any business transition, it is essential for us to be aligned on your objectives, financial parameters, etc., at the outset of our engagement. This kind of transparency is essential for a seamless and successful deal to occur. Once we are aligned, we will enter into a Buy-Side Agreement, which formalizes and outlines our relationship moving forward.

Acuity’s preliminary search process begins with the creation of a target company profile based on your specific buying criteria. We try to make this profile as specific as possible to your objectives in an attempt to reduce the number of unqualified targets. Beyond this target profile, we employ other metrics to vet potential acquisitions in order to ensure they fit within our establishe

Step 2: Targeted Search for Qualified Businesses.

With the “ideal” target that we’ve created in mind, we begin our search using a variety of networking channels. There are a number of variables that dictate how many qualified leads we encounter and when. In a perfect world, we will find several great leads in short order, but that’s not always the scenario that presents itself. With patience and purpose, we will search for the opportunity that fits you best.

While patience is an essential character trait throughout this entire process, we’re not big believers in just waiting around. Many advisors are willing to rely solely on standard networking channels. At Acuity, we add a proactive search component that makes us aggressive players in the market. We identify companies that fit our target profile but have not indicated any intention to sell. We then contact these potential targets to gauge their willingness to entertain an offer. This active marketing approach ensures that our clients are not missing prime opportunities simply because an attractive company is not actively seeking a buyer. This scenario often works to your advantage as a buyer, since you won’t be competing against other bidders if the owner is open to the idea of selling.

Step 3: Negotiate A Deal.

Once a target company indicates a willingness to proceed to the next step, we make sure all necessary confidentiality agreements and other safeguards are in place before revealing any identities or sharing sensitive information. With all appropriate safeguards in place, the advisor introduces the client to the target company and opens up the dialogue between them to begin negotiations.

During this negotiation stage, we typically serve as the point of contact for both sides. Information and documentation are disclosed to us and then passed along to the receiving party. This ensures that we can keep track of the total picture, which is important when drafting the offer to purchase or letter of intent. These documents are typically prepared by us based on your direction and then sent to both sides for their attorneys and accountants to review. Final agreements and other documentation used at closing are usually prepared by the attorney for the seller and reviewed by the attorney for the buyer.

When real estate is included, a deal is typically divided into two transactions. The real estate portion of the transaction is taken to a title company and processed by licensed real estate brokers. Some advisors have their real estate broker license and handle these transactions, whereas other advisors refer the real estate portion of the deal to an appropriate real estate professional. At Acuity, we have a strategic network of expert resources, including real estate professionals, that we can call upon for assistance when the situation arises.

There are a variety of issues that can prevent the successful transition of a business, from price to personalities. At Acuity, we work with both sides to explore compromises or alternative deal structures that will satisfy both parties and keep the deal moving toward completion.

Step 4: Closing

The transfer of funds is an integral part of every closing. When working for a buy-side client, Acuity recommends that the buyer’s attorney serves as an escrow agent, holding any earnest money deposits, as well as receiving funds at closing from the buyer, which are then disbursed to the seller. Attorneys are required to utilize a trust account for escrow funds and to follow high professional standards in its use.