Finding a Suitable Acquisition Target

Finding a Suitable Acquisition Target

 

Services: Partner Search

Sector: Logistics

Challenge: Our client, a global logistics supplier, wanted to round out its service portfolio in Latin America by purchasing a mid-size regional freight-forwarder. In order to accelerate the process, they hired AMI to find three suitable candidates with whom they could begin a serious discussion about an acquisition.

Approach: AMI began by identifying hard and soft criteria that could be used to assess the suitability of different candidate companies. Hard criteria are those that if unfilled immediate discredit a candidate from further review. Soft criteria are those that can be tolerated at different levels but ultimately decide if a candidate can be seriously considered. Then a process of secondary research was conducted to identify over 25 potential candidates. This list was whittled down by applying first the hard criteria and later the soft criteria as each company was profiled. Once a semi-finalist list of six companies was revealed, each was approached by AMI to gauge their level of potential interest in a discussion with a still undisclosed potential buyer.

Result: Three of the six qualified companies demonstrated a willingness to talk with our client about an acquisition strategy. Our client began discussions with all three, with a fairly exhaustive profiling of each company going into the conversation, including a SWOT analysis.

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