Mergers & Acquisitions

Organizations like EPIC do a fantastic job of providing forums where companies can meet and collaborate on projects and objectives. These opportunities are very valuable and can open the door to conversations which can lead to discussions of partnership and even acquisition. While these discussions are to be encouraged, much more work can be done to ensure that shareholder value is maximized, technology fit is optimal and expectations are aligned. The team at Sustainable Photonics has an extensive track record on both the buy and sell side of multiple M&A transactions ranging from <$10M to >$400M USD.

Our team has extensive experience working with sell side companies to prepare for the M&A Process, including:

• Setting realistic expectations around valuations, process & timelines.
• Preparation of the narrative; why is this company such an attractive prospect?
• Analysis of market segments and growth potential, detailed realistic forecasting.
• Expert consultative negotiation.
• Introduction to a network of pre-qualified potential partners.

Sometimes expectations are not matched with market realities and companies may have to work on their narrative. This is not a marketing exercise, but an actual market development exercise. 

By analysing the serviceable available market and targeting high potential customers, Sustainable Photonics have been able to move client companies for a place of relative stagnation, to a point where the future outlook is significantly different. This is much more than suggesting new customers, but rather focuses on market penetration in areas that are likely to change the future roadmap of the company in an honest and predictable way. By doing so, the potential acquirer may have additional motivation as the return on investment may now be improved or acces to certain markets may now be assured. Of course, these projects are longer term, typically 12-18 months in duration. 

Often high growth companies struggle to identify targets that are aligned to their goals as the market place for photonics M&A is active and very competitive. With decades of experince in North America, EMEA and Asia, Sustainable Photonics are ideally positioned to identify companies that may be attractive for acquisition.

Our deep industry knowledge and market awareness means that we are often able to identify companies that have an adjacent or vertical fit. From there, we are able to stress test the market place in a way that is not normally possible for the acquirer. While professional services firms offer excellent comprehensive due diligence in areas such as financial, legal, corporate governance and compliance, there is still the matter of due diligence on the manufacturing approach, quality systems and most importantly, market potential. 

At Sustainable Photonics, we compliment the professional services firms who support M&A by focusing on the Revenue and Gross Margins of the target companies and provide a risk reducing support service that evaluates the actual business.

Getting the deal done is only the first step on the pathway to successful acquisition. Many companies struggle with the post-closing optimization and integration of their newly acquired businesses. Sustainable Photonics offers support in post-close integration of sales and marketing teams without any historical bias that can often influence judgement. We also offer support on synergistic applications and customers that can be reached in light of the expanded capabilities.