A US engineering services group, part of a large staffing and services holding, wanted to acquire a company in the embedded electronics services sector to scale and augment its capabilities in software, hardware, validation and testing. The group had engaged an M&A advisor to originate the deal, and in December 2017 the advisor brought in PP&A to run the search and the first contact.
The target profile was specific. The group wanted a midsize company of roughly 200 to 250 people or more, with a presence in the United States, the United Kingdom, Germany, India or Southeast Asia, demonstrated domain expertise in automotive and transportation, consumer and industrial products, utilities or medical devices, and a business built on center-based engineering services rather than staff placed at customer sites. The embedded-systems market is fragmented and largely privately held, so most candidates would not be listed, would not have advisors, and would need to be found and approached one owner at a time.
PP&A structured the mandate around four objectives: identify 8 to 10 candidate companies every week from company databases, industry reports and desk research; find and reach the owners and senior executives of the candidates the client prioritized, mainly by direct phone outreach; conduct first screening interviews to confirm fit, availability for acquisition and the business details the client requested, without disclosing the acquirer; and coordinate non-disclosure agreements and first introductions once the client asked to proceed. In parallel, PP&A sought sell-side representation agreements with willing targets so that deal preparation on the target side would be supported.
Between January and June 2018 the search built a call list of more than 60 companies and roughly 140 named contacts, concentrated in India but including firms in the United States, Germany, Hungary and Brazil. PP&A screened more than 20 companies in depth through owner conversations, recording size, service mix, geographic coverage, verticals and ownership, and prepared transaction process and valuation briefings for the most promising ones. Those briefings walked owners through the sell-side process from introduction to signed purchase agreement, an eight to sixteen week timeline, and the valuation methods PP&A applies, combining precedent transaction multiples with discounted cash flow to arrive at a defensible enterprise value range.
By mid-2018 the search had turned a fragmented, largely private market into a working shortlist. PP&A screened candidates out on size, fit and availability and moved the strongest into representation and confidentiality agreements or introductory calls. The team drafted sell-side representation agreements with several targets and prepared and moderated the first introductions between the client, its advisor and the owners. PP&A also prepared briefing material on shortlisted candidates for the client's leadership.
The client got what the mandate promised: a continuously refreshed pipeline of qualified targets, first-hand confirmation of which owners would consider a sale, and a structured path from cold contact to negotiation. The acquirer's identity stayed out of the market until the client chose to disclose it.
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