SMALLER COMPANY LOOKING TO ACQUIRE A LARGER, SEARCHFUNDER RECOMMENDATIONS?

Currently, we have two different companies interested in selling. Today, we are only looking to acquire one. We have intentionally kept the conversation limited. We are ready to take the next step and submit an LOI.

Based on experience here, we're looking for advice on how best to set up the deal (purchase price, stock, cash, method of payment, executive team staying on,etc.) to enable search funder investors the most flexibility to help us close the deal. These acquisitions complement our current business model and expand our services. The overall intent is to acquire one of these companies, integrate into our smaller company and continue to grow organically and inorganically in the next calendar year. We are looking to acquire at least two companies next year. The current leadership of our smaller company has extensive background and experience in acquisition integration.

One challenge we see is that the motivation to do any stock deal in part is limited because the larger companies are integrating into, the smaller company. Were selling the vision of multiple acquisitions over the next[redacted]months hence increasing stock values. Any advice on setting up the deal to motivate existing owners with more than just all-cash?



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