How can a buy-side rep support a search fund entrepreneur?
- CrossKeyPartners
- Jul 25, 2023
- 3 min read
As a searcher, you are likely always on the lookout for potential acquisition targets. However, finding the right target and successfully negotiating a deal can be a challenging process. This is where a buy-side M&A representative can be of tremendous value. In this blog post, we will discuss how a search fund entrepreneur can use Cross Key Partners to help find and acquire the right target company.
First, it's important to understand what a buy-side M&A representative does. A buy-side representative is an experienced M&A professional who works on behalf of the buyer to identify and negotiate the acquisition of a target company. They use their network and industry expertise to identify potential acquisition targets, and then work to evaluate the target's financials, operations, and culture to determine if it's a good fit for the buyer. It is often said that an auction process or a seller who is represented by a banker will command a higher purchase price. This is because they have a sophisticated advisor on their side. With Cross Key Partners, you have a sophisticated advisor on your side to support you in negotiating the best price and structure for you.
As a former searcher, our founder perfected the art of approaching and forming relationships with business owners. You may wonder, 'why would I utilize a buy-side rep if I am searching full time?" There are several reasons: 1) Utilize a buy-side rep early in your search to form relationships with sellers who are almost ready to sell. These relationships can be stoked over the course of your journey and eventually pay off. 2) Parallel path the last 6-12 months of your search to accelerate deal flow as your funds become limited.
We have spoken with many searchers who want to self-fund their search, and are saving relentlessly to support their 2-year journey. This is admirable and the autonomy brought to a search through the self-funded route is immeasurable! With Cross Key Partners, we can support your search while you continue to work in your full-time job. All qualifications of leads will be handled and you will only spend time working with qualified sellers who fit your investment criteria.
One of the primary benefits of working with us is our network of contacts. Our team has extensive industry knowledge and connections that can help identify potential acquisition targets that you may not have been able to find on your own. We have a proven and efficient proprietary process to approach off-market prospective sellers, to explore whether they would be interested in selling.
Additionally, our team can help streamline the due diligence process. We have experience evaluating target companies and can help you assess the financials, operations, and culture of the company to determine if it's a good fit for your search fund. This can save you a lot of time and resources, and ensure that you are making an informed decision.
Another benefit of working with Cross Keys is our negotiation skills. We have experience negotiating deals and can help you navigate the often-complex negotiation process. We can also help you structure the deal in a way that works for both parties, ensuring a successful transaction.
In summary, a buy-side M&A representative can provide a searcher with many benefits, including access to their network, streamlined due diligence, and skilled negotiation. As you pursue your search fund strategy, it's important to consider whether working with a buy-side representative would be beneficial for your particular situation. Reach out to us for a no-cost exploratory call!