When Claude Rains declares “Round up the usual suspects” in Casablanca he really could have been talking about the average approach to lower middle market M&A. That is to say, most firms focus on roughly 100-150 likely buyers when they market a company for sale.
At the core of our beliefs, among many other things, is the fundamental agreement we live by: that we will never know enough about potential buyers to take a narrow approach. How is that for you?
What we’re saying in fact is “we don’t know”
When you break this admission down into its components, this fearless embrace of the unknown in fact gives our clients a great deal of confidence in our approach. Here is why.
Our approach is built on thoroughly exploring each these possibilities with our clients, conducting exhaustive buyer research, and producing buyer target lists that routinely have 5X potential buyers than the average investment bank.
We want more buyers because more buyers give our clients the opportunity to extract the maximum value in a sale transaction. And in the end what we’ve found is that 3/4 of the time our clients had never heard of their ultimate buyer.
That’s why we don’t just cover a couple of hundred ‘likely’ buyers. Our experience is that it’s also absolutely critical to round up the UN-usual suspects.