Candlewood Partners’ professionals are adept at advising clients in their acquisitions. Our experience comes from having closed acquisition assignments for clients, from making our own acquisitions, and from having an affiliate company, South Franklin Street Partners, that provides mezzanine financing for acquisition and growth purposes for middle market companies.

Candlewood professionals have owned companies in a variety of industries including food distribution, health care services, manufacturing, printing and chemicals. The experience gained in acquiring, operating, and selling those businesses enable us to relate to clients seeking acquisitions unique to investment banking. Marry that with our acquisition advisory experience along with the ability to help fund a transaction through South Franklin Street Partners and Candlewood Partners stands alone in its ability to provide end-to-end services in acquisition pursuits alongside clients.

We have advised clients through management buyouts (“MBO”), platform acquisitions, and a variety of strategic “add-on” acquisitions. No matter the project type, the acquisition steps are generally the same. They include:

• Identify the target – except for the case of the MBO, where the target company is already identified, the very first step is to identify the target company(ies). A variety of factors are considered when determining the best target(s), including industry, size, geography, markets served, and others. The most important step in the acquisition process is to define the parameters by which the target company will be identified. The Candlewood acquisition process is centered on this activity and will likely be the most intense part of the transaction for the client.
• Assess Value – through an exchange of information with the target company, we will build financial models to determine pre- and post-acquisition value to the buyer. One other unique set of experiences among the Candlewood professionals is that of post-merger integration. This experience enables Candlewood to understand the true value of the company to its buyer, from operations to brand, market and customer expansion.
• Coordinate Due Diligence – we will work with the appropriate professionals, such as accountants and legal counsel, to ensure the appropriate due diligence is conducted completely. We pay attention to the results and details of due diligence to ensure the proposed value is sustainable and to ensure whether or not the transaction should continue given findings during this stage. Certainly, not every transaction gets closed and we are careful to ensure that “deal momentum” does not dictate moving forward with a transaction that may not, in the end, be in the best interest of the client.
• Obtain Acquisition Financing – we work closely with clients to identify the best sources of funding, including senior debt, subordinated debt (if necessary), and additional equity when needed. We will engage a variety of bank and non-bank lenders to identify the best lending partner for the client.
• Negotiate and Close the Transaction – the senior level professionals, working every step of the project, are well armed with the information necessary, and years of experience, to negotiate successfully on behalf of our clients.