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As a Buyer

Why Benchmark International?

Not every company is built to be sold, and not every business is built to sell. While some companies and owners may be ready to go when you knock on the door, in the lower to middle markets, this is a rare find. Benchmark International was created with this reality in mind.

We continually adapt our processes to bring liquidity and efficiency to these segments of the M&A markets. For acquirers, this results in a higher probability of closing, quicker closes, lower transaction costs, more certain due diligence results, quicker post-acquisition integration, and better post-closing relationships with sellers and management teams. Some of the key areas in which Benchmark International creates these beneficial results include:

 

Pacing.

Time kills deals, and momentum is required to get across the finish line. Most sellers lack the experience to either be aware of these truisms or to know the timing norms of the various stages of an M&A deal. Even prior to engagement, Benchmark International begins the repetitive process of driving the importance of timing and the risks associated with unwarranted delays into each of our clients.

Fatigue.

Unrepresented sellers typically lack an understanding of the marathon-like nature of the process. Prior to going to market, Benchmark International engages our clients in detailed conversations concerning the process, the parts that will be most labour intensive for the seller, and just how much there is left to do after the letter of intent is signed.

Data.

We understand that buyers need data. We also understand that most sellers lack both significant swathes of data that buyers would like to have and the ability to actually pull and organise the data they do have for acquirers. We provide and manage online data rooms for our clients. The build-out is started well before going to market. To ensure ease of use and security, we use market-leading third party data providers. We assist in organising our clients' due diligence responses and coordinating those responses through the data room, and use comprehensive tracking checklists to ensure that nothing falls through the cracks and responses come to acquirers in the fastest and most complete form possible.

Expectations.

Our clients are always going to want maximum value for their business and we are committed to achieving that for them. However, sellers that are new to M&A markets often have expectations that acquirers are not accustomed to meeting. Some common, simple examples include the detail of the due diligence requests, the length of the purchase agreement, the breadth of acceptable add backs, and the net working capital mechanism and adjustment. While we are always looking out for the interests of our seller clients, one of their interests is obviously to understand which of their priorities and requests are realistic and which are not.

Emotions.

Our clients have typically owned their businesses for decades and spent as much time, if not more, with the business than with their family. It is safe to assume that it is their single largest financial asset by a long shot. As a result, what acquirers often see as a mechanical process is as much an emotional one for sellers. This leads to what buyers see as sporadic irrationality, bad faith, or worse. We not only work to help our clients keep the emotional aspects in check but also to help smooth over the difficulties that arise when the emotional aspects of the transaction take precedence over the technical points. We do not see the emotional features of the process as illegitimate concerns but rather as one of the valid aspects of the transaction that must be dealt with.

As a result of these focuses, our business model is
tremendously appealing to sellers and buyers alike.
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