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Treat acquisitions as a product
Acquisitions as a product
The process starts end to end: what can be automated or turned into a system so the company moves at high velocity? That includes finding a business before the owner knows they want to sell, and talking to them in a language that makes Beacon the first call when they do. 80 percent of Beacon's deals are proprietary, with no broker or investment bank in between.
The seller as customer
The seller is treated as the customer. Selling a company is probably the most stressful point in a person's life other than a divorce, and a founder has one company to sell while Beacon buys one about every week and a half. So the experience is built around speed and certainty, never being asked the same question twice, a single place to put everything, and a prompt when something is missing.
It also assumes good intent when a founder gets something wrong and understands that a founder running a business might only be able to take calls at 10 o'clock at night after putting the kids down.
Founder friendly stands out
The industry has long been populated by buyers who were somewhat predatory toward selling entrepreneurs. That shows up as low rates of letters of intent reaching close, retrading at the last minute, and promising one thing before close and doing something else after. Because the median buyer operates that way, being founder friendly makes Beacon stick out.
Why do buyers retrade deals at the last minute?
Retrading means a buyer reopens the price or terms after a deal looks settled, usually citing something found in due diligence. Once a seller has signed a letter of intent, a no-shop clause typically bars them from talking to other buyers. That leaves the seller with little leverage when new demands arrive. By then the seller has often told employees and spent months on the process.
How does a letter of intent work?
A letter of intent outlines the price and main terms a buyer proposes for an acquisition. Most of it is nonbinding, so either side can still walk away. Exclusivity and confidentiality are the usual binding parts. It is followed by due diligence, in which the buyer examines the company's financials, contracts, and operations before final documents are signed.
Why do broker-led sales draw competing bidders?
Investment banks and brokers typically run an auction. They send a summary to many potential buyers, collect first offers, and invite the strongest bidders to a second round. Competing bids tend to push the price up. Proprietary deals skip that process, so negotiation happens with a single buyer.
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