The benefits of buy-side business development with an unlimited use data roomJoel Lessem Mar 31, 2011
A number of our clients are buy-side professionals in corporate development roles with aggressive mandates to grow their business through acquisitions. Over the last few months I’ve talked to a number of them about their acquisition strategy and why they choose Firmex for their virtual data room needs.
In the case of one client, the mandate was to acquire $20 million in EBITDA per year, and they were pursuing residential care facilities with annual revenues in the range of $2-3 million. This client used Firmex over the course of the year to evaluate twenty deals, which allowed them to efficiently choose the ten deals they needed to reach their EBITDA targets.
Their acquisition targets were happy to have the buyer drive the process, and they appreciated the ease and convenience of using a secure data room to upload sensitive documents for evaluation. Our client was happy because their annual data room costs were fixed, and they found additional uses for Firmex after each deal was complete, such as using the data room as a portal for integration planning. At no extra cost, coordinating integration efforts within the data room brought all their stakeholders together. The easy online process helped them achieve greater transparency and governance through the consistent application of due diligence checklists that adhered to their guidelines.
Several Firmex clients are following similar strategies, processing a steady volume of transactions, and expanding their data room use to include post-transaction management. This list includes Fortune 50 conglomerates that have dozens of separate operating divisions with individual corporate development mandates that need to stay connected. We’ve found that they come to us for the cost certainty and flexibility that we provide, and they stay with us for the expertise and the personal touch of our Client Services team – a true turnkey solution, one upfront cost, and unlimited use.