Building Long-Term Value
Many corporate acquisitions are abysmal failures, according to a variety of studies performed by business school professors and consulting firms. A majority of the time, purchases of businesses don’t pay back the buying company’s cost of capital.
However, it is possible to build long-term value through careful acquisitions, and Carbide Partners can help business owners and investors succeed in this specialized process. Through our own hard-earned experience, we’ve learned lessons on how to build real value. We undertake a structured process to help our clients achieve their goals for growth:
- Identify your strengths, and understand what acquisitions really fit strategically with your business.
- Search thoroughly until you find the right opportunity.
- Avoid “betting the ranch” on large transactions, and reduce risk by focusing on manageable deals.
- Determine the right price for the target, and don’t overpay.
- When appropriate, use knowledgeable accounting, tax and legal experts to your advantage.
Carbide Partners can assist business owners and investors throughout the process of a successful acquisition. We help clients develop a clear rationale for an acquisition search program, and then work with them to find and conclude transactions that make financial and strategic sense. Most importantly, if the deal doesn’t work, our business approach allows us to tell our clients candidly that they should pull back.