M&A Transaction Support
As companies evaluate their options for growth across key government-driven and influenced segments, mergers and acquisitions remain a critical component of any strategy for extending capabilities, reaching new customers and markets, and maintaining leadership in core market segments. Moreover, strong recent growth in sectors such as energy, defense, homeland security, technical services and logistics has created a surplus of capital resources for potential strategic deployment.
Similarly, unparalleled levels of fundraising by private equity firms and a low cost of capital have sustained a surge in activity by financial sponsors. The free flow of capital, strong economic performance and a healthy pipeline of deals have helped to create an historic volume of transactions in the last three years.
However, the environment is changing. Tightening credit markets, shrinking availability of attractive candidates, and increasingly stringent terms have created a much higher degree of deal scrutiny and much greater competition for all attractive offerings. As a result, the need for a deeper understanding of the potential upside opportunities and downside risks are essential for both strategic and financial buyers in a dynamic market.
Avascent’s Merger and Acquisition Experience
The Avascent Group supports strategic and financial investors in developing and executing inorganic growth strategies across the transaction lifecycle. Working closely with senior level corporate development officials and financial deal teams, Avascent provides independent, in-depth, and fact-based analysis of the market, competitive, valuation and strategic environment to aid firms in mitigating deal risk, maximizing investment returns, and improving competitive bid positioning.
Avascent services include
M&A Strategy Development – While motivations for acquisition vary widely, a clearly defined and articulated M&A strategy is a common thread for all successful inorganic growth initiatives. Avascent works closely with internal strategy teams and senior leadership to define clear M&A objectives, develop focal points and criteria for success, and finally, evaluate alignment with overarching corporate missions.
Candidate Identification and Screening – Building upon a clearly defined M&A strategy and sound criteria for relative measurement, Avascent guides clients through a thoroughly tested, pragmatic target identification and screening process. Steps include:
- Initial Criteria Development
- Candidate Generation and Screening
- Candidate Assessment
- Detailed Target Evaluation
Upon completion, Avascent provides a systematic, rigorously screen set of potential targets and the strategic rationale underlying their potential acquisition. Throughout the entire process, Avascent provides clients with the clarity, information and tools necessary to expedite a direct target approach or to better position for initial relationship development.
Strategic Due Diligence – Identification of an attractive target or deal of interest is an essential first step in M&A strategy; however, tactical deal diligence is the point in the process where clients can really focus on risk mitigation and reward maximization. Avascent works closely with strategic clients and financial investors to understand the targets business and operational fundamentals. Taking an “outside-in” perspective, Avascent helps potential buyers understand the target’s core market dynamics, their relative positioning with customers and competitors, the health of their current and future revenue streams, and the potential risks associated with their acquisition. Integrating soft analysis such as “who diligence” on management philosophies and cultures with hard evaluations of revenue forecasts and cost models, Avascent brings a holistic approach to company valuation and diligence.
Post Merger Integration - Post-merger integration is a difficult process, with potential long-term implications for the acquiring company. Avascent has developed a customized post-merger integration (PMI) methodology suited for companies active in the defense, intelligence, and homeland security markets. Based on the GE Capital PMI methodology, the resulting framework can serve as a guidepost for defense buyers before, during and after a transaction.