Acquiring a company
Acquiring a company with BrightOrange
If you want to acquire a company, you’re starting a complex process where external advice is essential. This is why we offer advice and support throughout the entire acquisition process, from finding the perfect company to signing the purchase agreement. A vital part of the acquisition process is a thorough analysis of the opportunities and risks of the company you wish to acquire. This is necessary for a successful deal, but even more importantly, for a successful future.
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Why acquire a company?
Acquiring a company can be financially and fiscally attractive for several reasons. For example, you may want to grow, acquire knowledge and expertise that you’re missing, or achieve economies of scale. Each objective requires a different strategy. In an introductory meeting, we gain insight into your needs and possibilities, so we can determine the right strategy to find a suitable company. Do you already have a company in mind? Then it’s important to check whether your requirements align with those of the seller.
When to buy a company?
The right timing for buying a company depends entirely on your situation and reason for purchase. The most important thing is that you can finance the purchase. Market conditions and developments in the sector are also important. Together, we’ll determine whether it’s wise to buy a company now or to wait a little longer.
Do you want to brainstorm with one of our advisors? Feel free to contact us.
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BrightOrange’s approach
Acquiring a company typically takes six to nine months. Before you pop the champagne at the notary’s office, we’ll go through the following steps together.
Orientation phase
In the orientation phase, we determine the right purchase strategy, which depends entirely on your needs and goals. For example, do you want to acquire one company or is the acquisition part of a series? We also analyse whether you can finance the purchase and, if so, how. Then, we start searching for potential companies. We make use of our extensive network and access to various databases.
Approaching potential companies
If you have one or more companies in mind, we’ll approach them and request an Information Memorandum that provides a good overview of the business. If you’re interested, we’ll analyse the company’s value and start price negotiations.
Valuation and price negotiations
In this phase, we conduct an analysis of the company’s value. Then, we negotiate with the seller and their advisors on the price and financing of the purchase price. Then, the seller requests a non-binding offer. If they agree, we sign a letter of intent and proceed with the purchase process.
Due diligence
We then coordinate the Due Diligence; a comprehensive investigation of the company. The seller provides important information, such as historical figures and the tax situation, which are stored in a secure, digital data room. A team of experts review these documents to ensure there are no “skeletons in the closet.”
Final price determination
During Due Diligence, the experts verify whether the assumptions on which the non-binding offer is based are accurate. Therefore, we meet again after the investigation to negotiate the final price. If we agree, we move on to the second-to-last phase.
Contract negotiation and transaction documentation
A lawyer prepares a draft version of the transaction documentation, such as the purchase agreement. We then negotiate its content, with a focus on risk allocation between you and the seller. We aim to mitigate risks through warranties and indemnities.
Closing
Contract negotiations are complete, the transaction documentation is finalized, and the financing of the purchase price is in place. It’s time for the closing of the deal! We go to the notary with the seller to sign the transaction documentation. Then, we can pop open the champagne and celebrate the deal.
Why BrightOrange?
BrightOrange has years of experience in guiding company acquisitions. What sets us apart is our personal approach. A dedicated partner and consultant(s) are available throughout the process. Clear communication, raising concerns when necessary, and regular consultations: together, we make the acquisition a success.
- Personal approach
- More than 25 years of experience
- Extensive network
- Access to various databases
Frequently Asked Questions about company acquisitions
How do you buy a business?
Various acquisition strategies are possible when you want to buy a business. Do you want to acquire a family business, the business where you work, or a business from someone you don’t know? Each strategy requires a different approach, but you will most likely go through the steps described on this page. BrightOrange is happy to advise you and guide you through the entire process.
What are the costs of acquiring a company?
We always conduct an analysis of the value of the company you want to acquire. The final price is determined during price negotiations. You should also take into account additional costs to complete the transaction, such as external advisors, an accountant for the Due Diligence investigation, and a lawyer to draft the transaction documentation.
How do you finance a company acquisition?
There are various ways to finance a company acquisition, such as a loan, equity, net working capital, or fixed assets. Is it possible to acquire a company without equity? In some cases, yes. BrightOrange is happy to help you map out your financing options.
How do you acquire a company as an employee?
If you want to take over the company you work for, we will initiate a Management Buy Out process. This involves you taking over (part of) the company and assuming leadership. The advantage of this is that you already know the company and have a trusting relationship with the seller. On the other hand, becoming an owner is a big step and the process can be vulnerable, which is why the right guidance is indispensable.
Acquiring or starting a company?
We are often asked what the best option is: starting a company or acquiring one? Both strategies have their pros and cons. If we purely look at the numbers, company acquisitions have more success than startups, but it all depends on your situation. A (financial) analysis is also indispensable to make the right choice. We can provide you with all the information you need.
About us
Want to know more about Bright Orange?
Would you like to know exactly what it is we do, what drives us and which professionals you would be contacting? In other words, would you like to know what Bright Orange stands for? We would be happy to elaborate!
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Contact our employees
Robin Heezen
Consultant
Robin Heezen
Consultant
Robin Heezen
Consultant
“I love working with passionate entrepreneurs to achieve the optimal result. It gives me energy to assist them in this important and emotional process. At BrightOrange, we work with a fine team of professionals, in which we complement each other well. In addition, I get the space to apply my interests and qualities on a daily basis when assisting the transactions.”
Personal fact:
Likes to paddle and plays music at parties.