Buy-Side Process Overview
Buy-Side Mergers and Acquisitions Process
At Covenant Health Advisors, we specialize in helping buyers execute effective buy-and-build strategies to acquire and scale healthcare services businesses. Whether you aim to increase density within existing markets or expand into new verticals, our team ensures a seamless and successful acquisition process, tailored to your specific goals.
How the Buy-Side Process Works
Initial Consultation and Goal Alignment
We start by understanding your acquisition objectives—whether you're focused on growth, geographic expansion, or market consolidation. Our team listens closely to your vision to ensure we align the strategy with your financial and operational goals.Identify the markets targeted for building density, as well as the states being targeted for expansion.
Buy-Side Agreement Execution
We start by sending over our standard buy-side agreement for review and any potential red-lines proposed for discussion. Once we have a mutually beneficial agreement and all sides execute, we are ready for next steps. Why have a Buy-Side in place? Our daily outreach efforts produce multiple results. Some business owners are seeking to run a full process, or a sell-side process. Many, however, are hesitant to commit to a full process and can be nervous about engaging multiple buyers in a competitive process, but they are open to having a confidential conversation with one buyer. We then check to see which of our buyers would be a good fit and see if we have a Buy-Side in place to proceed. If no agreement exists, we typically move on to the buyers we do have an agreement in place with.
Market Research and Target Identification
Our extensive industry network and deep market knowledge allow us to identify and evaluate acquisition targets that fit your criteria. We provide thorough market research and analysis, ensuring we target the right opportunities that align with your investment goals.
Engagement
Once we identify a company that fits your acquisition metrics, we check in with you to vet the prospect. If there is no conflict, we arrange an introductory call with the business owner and your team, allowing for company overview, introductions, vetting questions, and diligence requests.
Valuation and Offer Structure
We help you determine the true value of the target company based on market data, financial performance, and growth potential. Our role here is to facilitate in any way possible, but never to set valuation expectations – we leave that to our buyers, as well as allow them to set cadence and process. We will set up and maintain a VDR and assist with data collection and the diligence checklist.
Negotiation and Deal Execution
Our team serves as your trusted advisor throughout the negotiation process. With our expertise in healthcare M&A, we facilitate smooth negotiations with the target, working to secure favorable terms and prevent common pitfalls. From letters of intent (LOIs) to final agreements, we ensure your interests are protected.