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Buyside Deal Sourcing M&A Corporate Development Support Services

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Buyside M&A CorpDev

The Big Idea. Rather than relying on organic growth, acquire multiple companies to strengthen your business and complement your vision. 

The Approach. There are hundreds of service businesses that have reached their proverbial ceiling, without the capability to grow on their own. 

To maximize the value of your business, and to support your growth expansion strategy, acquisition to strengthen your capabilities and profitability is a great tool known as buyside corporate development.  

Buyside M&A acquisition benefits include:

  • Whether M&A is used to enter a new geographic location, strengthen your product/service offerings, or build scale; acquisition strategies are an option to expand when your organic growth is limited to single digits. Plus, M&A boosts internal capabilities and competencies beyond geographic and market expansion. M&A is best used to create market leaders.

When should you consider corporate development?

  • Organic growth is limited to single digits
  • Cost of customer acquisition is greater than the competition
  • Cost of customer acquisition is greater than $1 to $1
  • Gap in team
  • Gap in portfolio
  • Opportunity for expansion, but limited team and resources

About the Approach Methodology.  Our process was developed and refined over the past decade to provide technology enabled service businesses the specific expertise and methodology exclusively focused on growth through alliance, acquisition, and portfolio and distribution expansion. Our methodology combines a precise and highly focused approach, delivered with deep industry expertise, resulting in the achievement of the corporate development objectives of our client company.  Our approach ensures acquisitions are accretive to valuations and realize the necessary timelines and results.  Our primary differentiation is that we are exclusively focused on the midmarket within a few select industries and we take a proactive approach to the acquisition of multiple companies in order to create a market leader. 

The Results. We GUARANTEE a 3X return. 

    • While cost of customer acquisition varies by industry, ERGO's buyside sourcing approach to M&A acquisitions acquires revenues that payback a 3X return. 

    • While your team remains focused on running the business, complement your business with value-added strategic acquisitions. Rather than being distracted by the daily grind of evaluating an acquisition, your team becomes involved only when discussions have matured and the deal has reached the due diligence and integration stage.  We ensure you make the right acquisitions to create value.

    • ERGO creates opportunities instead of waiting for opportunities to appear. The ERGO origination approach allows us to proactively co-create companies and opportunities.

Creating a Seller Methodology

The days of being able to build a family business or IPO over a lifetime are largely gone, as the pace of change, speed of technology, and changing business landscape requires companies to shift and evolve their models at a faster pace than ever before.

The need to stay ahead of both customers and the competition is a real challenge to creating a business that is beyond merely profitable and creates real wealth for its founders and shareholders. 

  • Did you know that less than 1% of companies make it past $10m in annual revenues in their first 10 years? 

 

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Few companies have all the time and internal resources to research and review all of the available market opportunities.

Contact ERGO. We are industry experts. We provide comprehensive support throughout from deal origination beyond the due diligence process to ensure integration returns the expected results. We assist in documenting the strategic business plan and corporate development strategy, conduct strategic reviews, and provide our partners with comprehensive analysis and actionable support.

Sources of Information

Deal Sources.

Buyside deal sourcing origination deal sources for M&A corporate development transactions, deal intelligence, M&A deal price multiples, deal sourcing, deal research, and deal support services. 

ERGO_buyside_deal_sourcing_origination_sources

  • ACG, the Association for Corporate Growth:  Mergers&Acquisitions' DealmakerPortal.com  / The online directory, and deal network for the middle market

  • AM&AA Middle Market Alliance Advisors / The Association for M&A professionals 

  • BizComps and BVRDataworld DealStats (private) / Business valuation resources 

  • CapitalIQ (subsidiary S&P Global Inc) / Market intelligence

  • CapTarget LLC  / Deal origination and M&A research 

  • CBInsights / Machine intelligence platform

  • CrunchBase / Discover innovative companies and the people behind them

  • DealStats from BVR / Business valuation resources 

  • Mergr / Global  database of M&A firms
     
  • PEHub /A community for PE professionals

  • Pitchbook Data (Subsidiary Morningstar Inc)  / Capital & M&A Database

  • Tagnifi (private) / A modern financial data platform

  • Thomson Reuters DMI M&A  / M&A deal coverage and financials  

  • SBIA – Small Business Investor Alliance /  Directory & advocacy for American Small business 

  • Tracxn (multiple investors, $13.5m) / Startup deal discovery platform


Company Data Intelligence Sources. 

ERGO_CompanyB2BdatabasedealsourcesMACorpDevdealsourcing

  • Apollo.io ($9m) | Data first sales platform
  • Datafox ($11.8m) | AI based company data acquired by Oracle 
  • Dataynze ($2m) | Sales Intelligence platform acquired by ZoomInfo
  • DiscoverOrg (private, acquired Rainking and merged with ZoomInfo (Great Hill Partners) | B2B database for Marketing and sales intelligence
  • Glassdoor (Recruit Holdings) | Job search: Find the job that fits your life
  • HG Data Company ($18.3m) | Competitive intelligence for the tech industry
  • InfoGroup (CCMP Capital Advisors) aka ReferenceUSA | Business and consumer databases for multichannel marketing solutions
  • InsideView ($76m) | Sales intelligence software solutions
  • LinkedIn (Microsoft) | Professional networking
  • Mattermark (Full Contact acquired Mattermark, $54m) | Identity & Data Solutions
  • Privco (private) | The best private company database
  • Owler ($19.3m) | Community based competitive insights
  • Udu (venture) | AI powered deal sourcing for private equity 

Additional list of B2B contact data sources available from SalesHacker.

 

Benchmarking Sources.

ERGO_industrydealstatsratios

  • ProfitCents by SageWorks / Industry Benchmarking data product "ProfitCents" 

  • BizMiner / Industry financial analysis benchmarks for over 5,000 lines of business and industry market trends
  • BizStats /  Statistics and financial ratios for broad industry categories

  • Business Expenses / Periodic national estimates from the US Census on operating expenses for merchant wholesale, retail trade, and selected service industries

  • Valuation Resources.com / A comprehensive resource guide for business appraisers for valuation 

  • The RMA – Risk Management Association  / Comparative industry benchmark data that comes directly from the financial statements of small and medium-size business clients of RMA’s member institutions

  • Capital IQ / Standard & Poor's Industry Surveys contain a section titled Key Industry Ratios and Statistics

  • Cost of Capital/ published annually by Duff & Phelps, provides detailed ratios and statistics for more than 300 industries (an international edition)

  • Almanac of Business and Industrial Financial Ratios and Annual Statement Studies / Financial ratios

  • Bloomberg  / an extensive list of ratios using the Relative Value (RV) function

  • ProBenchmark (ISG) / Benchmarking and market price intelligence

  • Service Leadership Inc. (acquired by ConnectWise) / Total Profit Solutions for IT Companies

  • Baremetrics / Metrics, forecasting, and engagement tools

  • KPISense / Modern SaaS financial KPIs and services 

  • Profitwell / SaaS Metrics for Smarter Growth

Additional list of industry sources available upon request.  

  • Compliance & Corporate Services
  • FinTech, Backoffice Administration, & Accounting
  • Human Capital Management and HRTech
  • Micro Business B2B
  • Sales BPO, Marketing Agencies, and MarTech

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