Understand the key motives driving your acquisition and how they fit into your global strategy and cross-border innovation goals. Then conduct detailed market research, case referencing. and ecosystem mapping.
Source viable targets, diligently qualify them, and provide a shortlist of the most promising prospects.
Develop a comprehensive strategy (with clear actionable steps and resource allocation recommendations) that can be presented to and greenlit by your headquarters.
Conduct meetings with key decision-makers (with or on your behalf), qualify the opportunity, and identify the three strongest prospects.
Review the shortlisted companies against the acquisition criteria, calculate a preliminary valuation range, and deliver a letter of intent (LOI) to each prospect.
Conduct in-depth due diligence to mitigate any potential risks, re-assess the valuation, and where possible find opportunities to negotiate a better price and terms.
Finalize the structure and deal terms of the purchase agreement, then coordinate with your and your prospect’s legal counsel to ensure the deal is closed out with minimal delays or setbacks.
POST-DEAL INTEGRATION (OPTIONAL)
Internal operational and communication framework, tailored training courses, and monitoring & intervention protocols to enable effective integration between you and your newly purchased company.
Combining a monthly retainer with a scaled percentage success fee (based on the estimated transaction value) our fee structure is designed to tightly align both our interests towards maximizing the value and success rate of the transaction.
POST-DEAL INTEGRATION SOLUTION FEES (OPTIONAL)
All prices are in USD and exclusive of sales tax.
Serica DOES NOT, under any circumstances, work on a sweat equity or commission only basis.
Our engagement process is designed to be highly collaborative to ensure that we find the best solution for your company as efficiently and effectively as possible.
1. What is the average length of a Buy-Side Acquisition project?
Between 6 to 15 months, depending on the scope and scale of the project.
2. Can we pursue multiple acquisitions across different industry verticals?
Yes, we have the capabilities to source and negotiate multiple transactions simultaneously. In most cases, we would advise waiting until the Research & Strategy phase is completed before you commit to such an approach.
3. Can you close transactions with prospective companies we have already identified as viable?
Yes, however, we would insist on conducting basic due diligence before engaging with any of them directly. Additionally, best practice dictates that we source additional prospects after the Research & Strategy phase is complete to maximize the value and success rate of any transaction we facilitate for you.
4. Do you cap your total fees?
Yes, our total fees are capped at 10% of the final transaction value (FTV). Retainers accumulated will be deducted from the success fee of all projects with a final transaction value (FTV) of over $10m.
5. How does the scaled percentage model work?
Before signing the contract, we will have preliminary discussions to agree on an estimated transaction value (ETV), on which our success fees will be based. For example, an ETV of $5M would have a success fee of 5%, and if the buying price matches the ETV, the total commission would be $250k. But if we negotiate the final price down to $4.5M (10% decrease on ETV), then an additional 5% commission on the negotiated $500k would be applied to bring the total success fee to $275k.
6. Do you have any break fees?
Yes, we typically include break fees of between 1-2% for the rejection of any Bonafide Offer you receive.
7. Are expenses covered?
No, any expenses (such as travel and accommodation) will be borne by you. Our contracts typically state that all expenses must be pre-approved and itemized receipts must be provided before any reimbursements of expenses can be made.
8. Are there any third-party fees we will incur?
Maybe, it depends on the project scope. Common third-party fees include software, legal, and administrative fees that you will incur. Where such third-party fees occur, Serica will endeavor through its network of strategic partners, to keep these costs to a minimum.
9. What are your billing cycles?
Our project fees and retainers are billed quarterly, with the first payment due within ten (10) business days of the contract being entered into. Our success fees are due within ten (10) business days of the acquisition agreement being entered into.
10. What currencies do you accept?
USD, GBP, EUR, and RMB.
11. We are concerned that government authorities may block our transaction. Can you mitigate the risk of this happening?
Yes, we proactively coordinate with different government departments such as the Chinese Ministry of Commerce, the US International Trade Administration, and the UK Department for International Trade in advance of any transaction.
12. What jurisdictions apply to Serica contracts?
Our default jurisdiction is Singapore due to its advanced legal system and efficient (and cost-effective) dispute resolution. We can also accept other well-regarded Common Law jurisdictions such as England and the United States as alternative jurisdictions.
13. Why do you exclusively use digital contracts, proposals, and invoices?
The ability to receive, sign, and pay electronically provides both of us with enhanced security and greater convenience. Learn more.
14. How do you track and report project progress?
We provide you with direct access to our communication hub (Microsoft Teams) and project management software (Monday.com) that enables you to track and review our progress in real-time.
15. What else do you need from us?
Serica takes a highly collaborative approach to every project we undertake. Throughout the project, we expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.