Buy-side process

The buy-side process is the structured approach followed by an acquirer from target identification to closing. It encompasses acquisition criteria definition, target screening and approach, business valuation, letter of intent negotiation, financial due diligence, SPA negotiation and closing. A well-run buy-side mandate maximises value creation, minimises post-acquisition surprises and builds a defensible pricing rationale. It requires disciplined investment thesis management, rigorous valuation and experienced M&A advisory.

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Example: a Swiss industrial group mandates Hectelion to conduct a buy-side process targeting French mechanical subcontracting companies with CHF 5–15 million EBITDA. After screening 35 targets, 8 initial approaches, 4 data rooms and 2 letters of intent, one acquisition closes at CHF 32.0 million enterprise value with a CHF 3.0 million earn-out conditional on the next two years' EBITDA performance.

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Hectelion leads buy-side mandates from strategy to closing, providing independent valuation, due diligence and negotiation support throughout the process.