Many organizations considering growth by acquisition assume they would need a large war chest of cash to fund the strategy. In fact, Cogent employs a variety of deal structure models that enable our clients to successfully execute accretive acquisitions, often out of ongoing cash flow and without using third-party investment capital.
What makes Cogent Growth Partners different from other M&A firms is our focus specifically on the IT Services industry, and our Operational depth in this space. Cogent's team members have deep IT Services expertise, encompassing business, financial, technical and operational aspects of the business.
We leverage that expertise through a unique life-cycle approach that allows us to impact not only every acquisition, but also the overall strength and performance of our clients’ businesses. This unique approach allows our clients to mitigate risk while they dramatically increase the value of their most important asset – their business.
We start with research and identify candidate companies within our extensive database, or add them. Then our outreach department sets discovery meetings with one of our Deal Team members (always one of the Cogent partners) who attempt to learn if the prospective candidate is a general fit at a high level and are amenable to a potential transaction.
Once interested, our Business Analysis team takes over and we hold "Operational Overview" meetings so that we can brief our interested clients to determine the best fit and make a decision to proceed. Once there is a decision to proceed, we gather initial due diligence and begin building the business evaluation process and financial modeling, validating it with the candidate as needed, before presenting our findings to the client.
At that point we will begin negotiating the deal points and assuming the parties are aligned, move to the Letter of Intent (LOI) phase. Once an LOI is signed by the parties, we move to the final due diligence phase and create all of the transaction paperwork. In this phase we are leading the transaction effort, working with counsel from both sides and all of the parties to finalize the transaction documentation that we author while completing the accompanying schedules and associated due diligence materials through to closing.
We also make sure that integration planning is keeping pace so that it can be implemented at closing and proceed apace post closing. Additionally, after closing, we commence our financial and transaction compliance phase, to be sure that all parties benefit and stay on track.
The above is a simple narrative of the process in summary, we'd be happy to discuss our approach in more granular detail, regardless if you are a client or a candidate.