Navigating the world of M&A requires accurate strategies and technical skills, especially when it comes to prospecting and managing international clients.
Text by Santiago Nicolás Boher, M&A Associate Latam and Europe at Pipeline Capital.
Prospecting is not as simple as it seems. It combines market analysis, the use of technological tools, and communication skills. Identifying potential clients and relevant projects, and supporting them with the right software, is key to initiating a successful M&A process.
Creating an initial list of potential clients is just the beginning. It is essential to evaluate the viability of each prospect through well-defined criteria, such as the company’s size, financial statements, and strategic compatibility.
Strategies and challenges in international M&A prospecting
International prospecting brings several challenges, from cultural differences to regulatory and linguistic barriers in each country and/or region. Adapting to different ways of doing business and complying with local regulations is crucial.
Leveraging local partnerships and networking can facilitate the process. Engaging with local consultants not only opens doors but also provides valuable market insights, helping to overcome these obstacles.
It is also crucial to cultivate an ongoing relationship with potential clients. Constant follow-up is vital because, even if they are not ready to initiate an M&A process now, when the right time comes, the relationship you have maintained will be the key that leads them to turn to you.
Staying on their radar can turn a future opportunity into reality.
Pipeline Capital Scape Report
Pipeline Capital presents its first Scape Report in Europe, focusing on MarTech and AdTech in Spain. This report maps the tech ecosystem, highlighting emerging trends and key players. With 12 years of experience, Pipeline Capital offers valuable insights for M&A operations in the tech sector.
What will you find in the Scape Report?
- Key trends in the tech ecosystem.
- Identification of emerging companies.
- Analysis of significant industry changes.
Buy Side screening for M&A
The screening process for Buy Side companies in M&A is crucial. We meticulously analyze target companies to ensure they meet specific criteria:
- Financial evaluation:
We review financial statements to understand stability and growth potential.
- Strategic compatibility:
We assess alignment with the buyer’s long-term strategy.
- Due Diligence:
We perform thorough procedures to identify potential legal, tax, or operational risks. Read our article “What to expect from the Due Diligence process in M&A?”
- Market and competitor analysis:
We study the target company’s market positioning and compare it with competitors.
Key points
The key to efficient prospecting in the M&A field lies in adaptability and a well-outlined strategy. Being ready to address and overcome the unique challenges of each market is fundamental.
Being flexible and receptive to new cultures and business methods is what can truly transform prospecting into a significant achievement.
Text by Santiago Nicolás Boher, M&A Associate Latam and Europe at Pipeline Capital.
Read more articles about M&A:
- Pipeline Capital launches its Scape Report in Spain, the first in Europe
- What to expect from the Due Diligence process in M&A?
- What is an M&A process?
- How can strategic funding boost your business?
- The role of M&A advisory in selling your company
- The benefits of selling your business to a larger company
- Digital Transformation: How M&A is guiding traditional companies to innovation
- The perfect prosperity formula for a software company
- Using M&A to enter new markets or acquire new technologies
- Corporate governance as the central strategy for success in M&A
- Risks in M&A: Key risks and how to identify them
- Myths and truths about selling companies
- M&A in the technology sector: Challenges and opportunities
- 5 most common mistakes when selling your company
- 5 common mistakes when selling your company – part 2
- Exploring the cost of capital – by Rafael Vavrik
- Brands and M&A – by Alon Sochaczewski
- M&A market is like a movie – by Alon Sochaczewski
- M&A shows positive trend, which should consolidate – by Alon Sochaczewski
Folow us:
For more information, please visit our website: Pipeline Capital