Strategic Buy-Side M&A Advisory Backed by Insight to Accelerate Growth
It’s a numbers game
Our Approach to Buy-Side M&A
Danescor’s end-to-end M&A support is geared towards helping clients identify and acquire best-fit companies
Project Lime – target sourcing
Problem
Our client, a leading master distributor of industrial products, wanted to acquire businesses operating within their existing product portfolio as well as in key adjacencies. Master distributor targets would deliver optimal fit for the buyer, resulting in a specialized focus.
Objective
Identify and connect with targets based on tight acquisition criteria in a niche. Implement, manage and optimize a comprehensive M&A funnel for off market transactions.
Solution
As a portfolio company of a midmarket PE firm with national coverage, the client recognized the value of a comprehensive M&A program. With our in-house software and data analytics, we compiled a full information suite for a comprehensive target list. Our deep sector M&A experience then refined list for best fit targets and facilitated valuable target introductions. Our M&A specific deal management platform enabled us initiate, management and develop target relationships to optimize transaction likelihood.
5 months
Project timeframe
300 targets identified
Filtered for selective criteria
c45 responses
Mid teens response rate
c15 calls
Calls with validated targets
Atech
Problem
Atech, a UK-based managed services provider, sought to accelerate growth by expanding their service capabilities and customer base through acquisition. While the leadership team had clarity on their acquisition criteria, they lacked access to a curated, high-quality pool of potential targets that fit both their technical profile and cultural alignment. The challenge lay in identifying businesses that could seamlessly integrate into Atech’s operations while delivering strategic synergies in managed IT, cloud solutions, and cybersecurity.
Objective
Identify and engage suitable acquisition targets that met Atech’s specific criteria: · Sector: Managed Services Providers (MSPs) with complementary cloud and IT infrastructure capabilities. · Technology focus: Strong Microsoft partnership and Azure expertise preferred. · Scale: Annual revenues in the range of £3m–£10m. · Location: UK-based, with potential regional client base expansion. · Client base: Mid-market organisations with recurring managed service contracts. · Strategic fit: Cultural alignment, high client retention, and potential for cross-selling services
Service
· Acquisition Criteria Development – Worked closely with Atech to refine acquisition parameters, focusing on size, sector expertise, technology stack, and geographic coverage.
· Industry Mapping & Target Universe – Leveraged the Danescor platform to map the UK MSP market, identifying and qualifying a target universe of potential acquisition candidates.
· Target Outreach & Engagement – Initiated discreet approaches to shortlisted businesses, presenting Atech’s acquisition proposition to decision-makers.
· Deal Management – Facilitated introductions, coordinated due diligence, and supported negotiations to ensure deal momentum and alignment with strategic objectives
Through a combination of sustained organic growth and targeted acquisitions, Atech rapidly scaled its capabilities, client base, and market reach. The strategic buy-and-build approach not only strengthened its service portfolio but also enhanced valuation, ultimately leading to a £57m exit to Iomart.
Strategic networks
Danescor’s networks enhance deal origination, accelerate due diligence, and expand execution capabilities, empowering clients to move with speed, confidence, and strategic advantage across the transaction lifecycle.
- Market leading intelligence for fast, efficient target identification
- Access proprietary real-time market information leveraging key data points across thousands of companies and transactions.
- Seamless project data integration incorporating dynamic market updates together with extensive access to Danescor’s Knowledge & Resource Centre.
Acquisition Ecosystem
The deal ecosystem requires multi disciplinary skills and knowledge and participating functions. Our M&A advisory team provide ‘must-have’ financial, deal and end-to-end project management expertise to support you across the entire acquisition process or support your M&A team with investment banking resource.
We combine technology, data and business strategy which align with your M&A criteria. Our team bring a combination of corporate finance and deal-specific capabilities. We provide our clients with bespoke services dependant on their criteria, whether valuations, deal- structuring, financial modelling or drafting board papers, we provide services aligned to your specific requirements.
Frequently asked questions
How do I decide if I should acquire?
Clearly identify how you can create value from acquiring with a solid rationale to support 2+2=5 or more. Having established the strategic logic that supports an acquisition you need to confirm that the assets exist in a meaningful number and be confident you have the financial resources necessary to execute the transaction. Are you likely to be in a competitive situation with other buyers? If so how do you differentiate yourself apart from being the highest bidder offering a higher price? Ask yourself, how can you best appeal to the vendor? Clearly identify how you will can create value from acquiring with a solid rationale to support synergy realization.
What are common mistakes made by companies looking to acquire?
- Lack of buyer appeal: Having decided to acquire they think any company considering a sale should be happy to engage and sell to them: Selling a company is a sensitive process and most sellers want the company to go to a good home. The seller needs be convinced that there is clear business logic for the transaction, the acquiror has the funds to complete the transaction and if possible has a track record of successfully completing acquisitions.
- Contacting Sell-side Advisors: Reaching out to M&A advisers they know to inform them they are open to acquisitions and asking them to include them on their buyer lists for any suitable sale processes they are running: It is hard to appreciate but this is likely to be very ineffectual, and it is questionable whether the adviser even makes a note of your interest! The market for sell-side advisors is incredibly fragmented which means even the very best advisors have an insignificant market share — making this approach highly inefficient. Even if you do get shown opportunities you are likely to be one of 80+ buyers looking at the opportunity, translating to an extremely low conversion rate and more wasted resources. Given more than 95% of M&A advisors only do sell-side transactions and they typically have an insignificant market share, their actual knowledge of the buyer community is severely limited. This means they are ultimately a “transaction house” that just runs processes to get deals done. They want to get the business sold and don’t care too much if it is the best buyer or not. It’s better for them to get the business sold in six months or less rather than spend an additional three months trying to find a buyer who will pay 10% more.
- I am already talking to a couple of prospects and think I will get one of those over the line: A classic example of “you don’t know what you don’t know”. In order to drive the most return from an acquisition you need to acquire a 9/10 prospect so your business can achieve an ROI of >80% rather than settling for 20%-30% or less from acquiring a 6/10 or 7/10. Acquiring each “best fit” company requires you to look at circa 100-140 companies, and you need a process that is fit for purpose to achieve this.
We have decided that acquisitions are a core component of our growth plans so what’s wrong with hiring an in-house M&A professional?
More than 95% of M&A advisors solely focus on sale processes and because the market is so fragmented and competitive they have a minute market share which means they just run transactional sale processes. Further only 25% of all M&A transactions are the result of a formal banker-led sale process, which means 75% are the result of off-market processes. As a consequence, there is a skill-set mismatch with what you are trying to achieve, so while it is understandable, you also need to recognize and acknowledge the shortcomings of this approach.
If I have hired an in-house M&A professional why is that not enough?
You want to ensure that you leverage this investment to the full, which requires focusing his time on the most value-add activities and partnering internally and externally to cover the other