We have developed an acquisition model for identifying candidates, evaluating potential acquisition targets and for integrating acquired companies:
Identification
NCAB strives at an early stage to engage in discussions with interesting acquisition candidates. These opportunities are mainly generated through our own proactive search efforts and by referral from business partners and external advisors. Many owners are already acquainted with NCAB prior to a potential sale. In some cases, NCAB has had long term relationships with the entrepreneurs and family business owners and they contact us directly when the time is right for them to sell their life’s work.
Evaluation
NCAB evaluates potential acquisitions based on a number of metrics aimed at creating a deep understanding of the company’s business model. These measures include but are not limited to: market position, customers, suppliers, sustainability aspects, financial history, future prospects from a growth perspective and the future involvement of key personnel. It is important that key personnel are in favour of the transaction to ensure the retention of important customers, employees and suppliers.
After we have agreed on a valuation and have prepared a letter of intent for the seller, the due diligence work begins. NCAB begins by performing a commercial, legal and financial screening of the target company. This is followed by negotiations and then by the signing of the agreement. Due diligence work is performed both internally and also with the support of external advisors.
In conjunction with the due diligence process, we prepare a future business plan specifying details on how to add value to the target company and how to ensure a solid integration process.
Integration
After the acquisition has been completed and communicated externally through a press release, we further develop the business plan together with the company’s management. We collaborate on how the business can be best assimilated into the Group and on how to capitalise on the benefits of being part of NCAB Group.
NCAB’s integration process delivers synergies:
