Corporate Development Origination Case Study

June 24, 2018

Case Study: A Captarget Corp Dev Client

A private equity backed manufacturer of LED lighting components. Already growing fast from internal efforts, the firm was now looking to grow through acquisition.

The client was not a professional buyer (like a private equity fund), they were hesitant to pay bankers, or sign any success fee-based “finder” firms.  They viewed the cost as simply too high.  Additionally, with a fairly small management team and no dedicated internal corp dev executive. Each key executive wore many hats, leaving the acquisition search sporadic.

The Catalyst

Due to the niche focus of the company’s operations, anything less than a very thoughtful, diligent approach to sourcing acquisition targets simply did not create results.  Deals presented by bankers commanded high price premiums are were often part of competitive, highly visible auction processes which the client preferred to not participate in.

Considered Solutions

Adopted Solution?

The client engaged CAPTARGET on a 6-month commitment basis to source acquisition opportunities directly from sellers.  This allowed the client to avoid costly auction processes, eliminated the requirement to pay success or finders fees, and ensured an expert party was accountable for their success.

Net Impact

By month 4 the company has issued 3 LOIs, and have had conversations with more than 30 qualified targets.