The company's growth can be achieved organically. However, the development can often be accelerated by the acquisition of existing players and thus constitute growth enabling the company to strengthen; its competitive position, new market access, internationalizing or acquiring new competences.
Identify the perfect target, enter into negociations, complete the transaction
Expanding your business through acquisitions can help to meet several goals: diversification, marketshare gains, acquiring new competences, etc. Before embarking on an acquisition process, it's important to well-define the profile of the company you're looking for; core-business, location, size, financial health, etc.
Once this analysis has been determined, the acquisition process generally roles out in four phases.
Am I ready to do an acquisition?
What are the goals I want to achieve?
What are the valuation multiples generally in effect?
How will I fund my operation?
What is the perfect timing?
How will I integrate the acquired company?
To answer these questions you need more information than what your accountant or trustee can provide. What you need is an X-ray picture of your company and its business model and financial plan.
Fortunately, your management systems often contain the data you need. But how can you make the most of the information?
Identifying the most interesting targets, contacting the shareholders and negociating an offer at the best conditions and at the right price, requires expertise on two essential subjects:
- The capacity to indentify priority targets
- An in-depth knowledge of the acquisition process as well as an expertise in the conclusion of this particular operation.
Acquisitions are by nature extraordinary events in a company's life, therefore it is deemed necessary to surround this process with the best experts to both minimize the risk and assure to carry out an operation in the best possible conditions.
We identify a short list of companies that meet your desired criteria. For each of these particular targets we gather a maximum of information (public or private) to establish a profile as precise as possible with the aim to determine the priorities before entering the approach phase.
Once the targetted companies have been identified, we enter into the approach phase, which aims at understanding the targets' mergers situation and identifying the seller's motivations.
Our team analyse the economic model of the target company and proceeds with a profound financial analysis taking into account both the intrinsic data of the target company as the market data. Following this analysis, our team prepares a detailed non-binding proposal for the transferor. This proposal contains, in addition to the price and the terms of acquisition, the envisioned particular steps to conclude the deal.
During the due dilligence phase the acquirer is assited by our experts to verfy and deepen his knowledge of the target company in order to confirm (or modify) the non-binding proposal. Subsequently, we integrate the specific elements discovered at this stage into the acquisition agreement (for example: in the form of guarantees).
After the due dilligence phase, the acquirer will negotiate the final acquisition agreement with the seller. This particular contract will define the term of the transaction (price, timing, guarentees, etc.). It is necessary to negotiate a shareholders' agreement or a management agreement when the assignor remains in service or retains an interest in the company. Finally, it's possible that the acquirer wishes or has to reinvest in the acquisition structure, therefore a contractualization of the shareholding structures' entry and exit conditions are necessary.
Proven experts in your company. Allyum's professionals are true specialists in financial analysis and in the management of merger and acquisition processes. In addition, their training and experience allow them to quickly understand the business model of a company and the charactarastics of the sector in which it operates. This results in a rapid evaluation of interest regarding the acquisitions' potential.
Tailored solutions. Each intervention done by Allyums experts is the outcome of a precise methodology validated by experience. This methodological approach enables our team to develop tailor made approaches accompanying our clients at all stages of the acquisition process. Moreover, our experts deep market knowledge permits them to quickly identify target companies and to valuate them at the best possible conditions.
A controlled cost. We have developed a range of clearly and transparently priced packages that give you full visibility over the cost of our mission.
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