We represent only buy-side clients selected for financial capacity, a track record of timely transactions, and experience as a resource for successfully enhancing business growth and profitability.
The CorDeve Group does not seek or accept sell-side engagements and takes no fees from sellers. We require that clients give us their advance permission to disclose their identities and information to acquisition candidates as appropriate.
In addition to saving the cost of retaining a sell-side broker or investment banker, prospective sellers avoid the negative impacts of a public auction that brokers and investment bankers use to seek buyers. This public disclosure can alert competitors, vendors, customers and employees that the business is for sale.
Furthermore, many qualified buyers refuse to participate in auctions, viewing them as a waste of money, time and effort to complete the due diligence necessary to submit a competitive bid, most times to lose the deal. Additionally, many investors would rather be introduced to qualified sellers on an individual basis, with the opportunity to engage in one-on-one meetings to get to know the owners or managers and the culture of the company for purposes of working together to determine the best ways to increase value.
We respect an acquisition candidate’s need for confidentiality both within and external to the company from the initial contact throughout the acquisition process. We establish and maintain discretion and confidentiality and will not disclose a prospect company’s response, identity or information without permission or a Confidentiality or Non-Disclosure Agreement.
The type of investor that is right for a company seeking to sell depends upon the specific objectives of the owners with respect to company growth, and their own goals for liquidity, succession, involvement, continuing control and financial upside potential.
Corporations that seek add-ons to their existing businesses will target companies or product lines that fit their strategic plans and provide synergistic, value-added growth to their existing offering. The synergies sought may be in any number of areas including products, manufacturing processes, operational efficiencies, capacity improvements, marketing and distribution, supply chain, customers, markets and geographic coverages. In turn, the seller can achieve immediate liquidity and possible management succession.
Investment groups that seek stand-alone or platform companies may not require specific synergies and are more likely to enable business owners to retain independence and secure an opportunity for upside returns. In these cases, owners of the acquired companies typically retain more management control for themselves or their management team and gain a combination of liquidity and the opportunity to share in the upside potential. In addition, their companies retain organizational identity, while obtaining strategic and financial support from the investor.