The first phase of the Compass Merger and Acquisition (M&A) Service emphasizes value enhancement and the strategic positioning of a company as part of the process of going to market.

We analyze your business with one goal in mind - to make sure your unique drivers of strategic value are properly documented and protected before we go to market or the Dealmaking phase. We know that an acquirer will place a higher value on target companies which can demonstrate drivers of strategic value which ensure that the revenues and earnings are sustainable and transferable after the close of the transaction.

Adventum develops a unique plan for your business to maximize its value in the marketplace. We will analyze your business for the following drivers of strategic value?

1. Industry Expertise: Strategic acquirers highly value those firms which concentrate on a select number of industry verticals due to their greater depth of relevant knowledge and broad base of subject matter expertise. Organizations with a demonstrated understanding of the specific nuances of one or two primary industry verticals provide for greater post-transaction competitive differentiation and a more strategic contribution to a potential acquirer.



2. Geographic Markets: Strategic acquirers value those firms which concentrate on select geographic markets. These firms possess key knowledge about the market drivers and local dynamics. Organizations with a demonstrated understanding of the specific geographic markets offer greater post-transaction cross-selling and competitive contributions to a potential acquirer.



3. Employment Retention Model: Corporate expertise relies on the collective individual expertise. The greatest asset of any organization is its employees. Strategic acquirers look for an organization to ensure that key employees (those with the intellectual knowledge, business model skills, management skills, and client relationships) remain with the organization. The existing management team knows the market space, the competitive environment, and the existing personnel. From an integration risk perspective, management continuation provides a stabilizing effect felt throughout the acquired organization.



4. Satisfied Customers: From an M&A perspective, an existing (and preferably, marquee) client base creates significant value when relationships exist at the executive level. This value is further enhanced as a service provider demonstrates a historic ability to grow with its customer, illustrating that the company's relationships develop as the needs of its customer increase.



5. Selling Methodology: As a young organization grows the founders generally lead the sales efforts. As the visionaries, the greatest stakeholders, and often times the savviest individuals within a developing organization, management is best positioned to present the compelling reasons required to earn business. However, as an organization continues to grow, and as management's time is filled with additional responsibilities, a cross roads is reached. How a company develops its selling methodology needs to be understood and documented. In the end strategic acquirers are interested in sales models and organization that are scalable.



6. Cross-Selling Opportunities: Successful cross-selling accelerates revenue growth by leveraging the existing strengths and expertise of a strategic acquirer into the existing client base of the acquired company or visa-versa.



7. Confirming Financial Metrics: Organizations that possess a clear value proposition and maintain strong customer relationships should realize revenue growth, above average gross margins and experience above average earnings. Transparent accounting standards are a key component of an attractive acquisition target. These standards demonstrate a desire to accurately report financial performance. Strategic acquirers expect that as a target company matures the organization's financial controls will mature as well. Adventum Group will analyze and recast the last three years of financial statements in order to show the true earnings potential of your business

As your M&A advisor, Adventum Group will analyze your business objectively to identify the natural strengths of the company. We will develop an Exit Plan to build on its strengths and help eliminate issues that would otherwise result in a reduction in value of the business in the marketplace. Our goal is for you to avoid the unnecessary distraction, time and lost opportunities encountered by premature and unfruitful forays into a possible sales effort. We help sellers understand how businesses are valued.

Our goal during the Exit Planning phase of the Compass M&A Service is to provide our clients with the opportunity to make positive adjustments to drive the strategic value and attractiveness of their company.

When the business is properly readied, the drivers of strategic value of the business are clearly understood and documented, and the owner is ready, Adventum Group moves into the second phase of the Compass M&A Service — Dealmaking. Please read further about our unique, innovative Compass M&A Service and how we build on the Exit Planning phase by identifying and enticing the right buyers constructing, negotiating, and closing the transactions.