Small public companies have a unique opportunity to grow rapidly through strategic acquisitions. Access to the capital markets, strong market valuations, extended operating histories, and transparency provide advantages to public acquirers that are not available to private acquirers. Acquis' investment strategy leverages the unique attributes of small public companies to fund transactions that result in significant ROI for all shareholders.
Market expectations create pressure for small public companies to grow extremely quickly. Acquis’ strategy allows nano, micro, and small cap public companies to meet and exceed market expectations with tangible growth.
For more info, please see the Acquis BLOG.
Micro & Small Cap Acquirers
Micro & Small-Cap Acquirers
Acquis Insights (Acquis Capital)
"When most investors hear the words nano, micro, or small cap and acquisitions in the same sentence, they tend to think of a small public company being acquired by a larger public or private company. As most management teams were struggling to grow their core business with the hope of being acquired, other management teams flipped the script and became acquirers."
From Shell Company to Billions
"I looked for a small, publicly traded business that I could take over as a shell company and grow by acquisitions into a major global marketing organization...In our first two years we made 18 acquisitions."
Importance of M&A for Growth
New CEOs typically raise the tempo of transactions at first, then the pace slows down. Is that costly?
M&A: The One Thing You Need to Get R
Companies that focus on what they are going to get from an acquisition are less likely to succeed than those that focus on what they have to give it.
Serial Acquirers Method of Payment
How Do Serial Acquirers Choose the Method of Payment?
"We show that serial acquirers appear to strategically shift between methods of payment in acquisitions based on changes in their own characteristics. In particular, they attempt to take advantage of their overvalued stock in making stock-financed acquisitions. Acquirer overvaluation significantly affects acquisition dynamics, increasing the speed to the next acquisition and affecting the propensity to pay with stock."
Acquisitions: A Pubco Opportunity
Acquisitions: An Opportunity for Small Public Companies (Acquis Capital)
Small public companies have an opportunity to grow rapidly through strategic acquisitions. By leveraging strong valuations, access to the capital markets, transparency, and operating history to make strategic acquisitions, small public companies can create substantial shareholder value very quickly. Watch a short video on the opportunity small public companies have to grow through acquisitions.
The Renaissance in M & A
The Renaissance in Mergers and Acquisitions: The surprising lessons of the 2000s - Jan 2013 Bain Brief (Bain & Company)
"The only companies with deal-making returns significantly above average are the "Mountain Climbers." These companies are the M&A stars, with returns almost two percentage points above the average and more than three points above the inactives. They acquire frequently. Their acquisitions add up in terms of materiality. Their deals are generally well conceived..."
Middleby Corporation: Case Study
"In 2001, Selim Bassoul became CEO of a $40 million market cap microcap...[since then] Middleby has made close to 50 acquisitions under Bassoul’s leadership, the biggest acquirer in the industry’s history. In 2013, Middleby acquired Viking Range for $380 million"
A Micro-Cap Success Story
Access a free case study about one micro-cap issuer's journey from the OTCQB to the NASDAQ. Learn how this micro-cap issuer went from $0 in revenues, minimal assets, & substantial liabilities to projected 2016 revenues of $100,000,000, over $25,000,000 in assets, & over $10,000,000 in stockholder's equity... ALL IN LESS THAN 2 YEARS!
The Importance of Urgency
The Importance of Urgency
(Harvard Business Review)
"John Kotter, Harvard Business School professor and author of A Sense of Urgency. Without a true sense of urgency, any change effort is doomed. Watch John Kotter discuss the need for urgency and how managers create and sustain it in their organizations."
The Five Types Of Successful Acquisitions - McKinsey on Finance(McKinsey & Company)
"In our experience, the strategic rationale for an acquisition that creates value typically conforms to at least one of the following five archetypes: improving the performance of the target company, removing excess capacity from an industry, creating market access for products, acquiring skills or technologies more quickly or at lower cost than they could be built in-house, and picking winners early..."
Small Cap M&A Legal Review
Small Cap M&A Legal Review - Deals Valued up to US$50MM (Thomson Reuters)
" Worldwide announced Small-Cap M&A deals valued up to $50 million (including undisclosed value deals) totaled US$119.1 billion in the
full year 2013 – an 8.9% decrease year-on-year.The Asia-Pacific (ex Central Asia) region (by target domicile) led the Small-Cap market, with US$51.1 billion of announced deal activity.The European region (by target domicile) led the market in terms of number deals..."
Grow Fast or Die Slow
Grow Fast or Die Slow - April 2014 (McKinsey & Company)
"Growth trumps all. Three pieces of evidence attest to the paramount importance of growth. First, growth yields greater returns. High-growth companies offer a return to shareholders five times greater than medium-growth companies. Second, growth predicts long-term success. “Supergrowers”—companies whose growth was greater than 60 percent when they reached $100 million in revenues—were eight times more likely to reach $1 billion..."