Acquisitions are a critical component of SRS Acquisition Corporation's dual growth strategy. To achieve and maintain our goal to be the fastest growing company in our industry, we focus both on organic growth that is fueled through product expansion, sales force expansion, and the opening of new locations as well as growth through strategic acquisitions. To achieve this, it is imperative that we develop a continuous pipeline of quality independent roofing distributors looking to potentially join our team. We feel very strongly that we are the preferred home for many companies in the industry looking for an exit strategy or transition, especially for owners that are looking to be a part of a company that preserves and builds onto the heritage of the legacy company and one that prides itself on being a good steward of the employees and customers after the sale. The information below is intended as a resource to help owners gain insight to the acquisition process and what we look for in an ideal candidate. That being said, all transactions are unique and the best way to determine whether or not SRS is a fit for your company is to contact our M&A team by requesting more information below.
The Process - Our main Steps in a typical Asset purchase with no real estate involved are:
| I. | Target candidate company research & signing of the confidentiality agreement |
| II. | Determine strategic fit (Initial Meeting with the owner & tour of main facility) |
| III. | Exchange of Information / Initial Valuation stage |
| IV. | Letter of Intent |
| V. | Due Diligence Process (Usually takes between 30-60 days) |
| a. Financial, Risk Management, Operational, Human Resources, Environmental & Legal | |
| VI. | Final Purchase Agreement signed / Physical Inventory performed / Closing |
| VII. | Migration to SRS Payroll, Benefits and ERP system at closing |
| VIII. | Final Closing Balance Sheet Settlement (~90 days post closing) |
| IX. | Post close Integration - execute the growth strategy |
- Quality of successor management team
- Lead or Secondary Market Share
- Steady Market Conditions
- Track Record of consistent profitability
- Quality and efficient utilization of assets
- Significant future growth opportunities >10% CAGR
- Clean operational history
- Owner & Management exits at close
- Limited Market Position
- Erratic Market Conditions
- Inconsistent peaks and valleys in recent profits
- Older capital equipment and below average asset turnover
- Peaked or slower growth rate market / opportunity
- Past operational or Environmental Issues