Market leaders are growing through successful acquisitions and mergers. Currently, a whole range of industries are in a phase of upheaval due to intensified competition, increasing market maturity and technological change. It is predicted that this process will intensify.
We help companies and investors who are planning:
- takeovers or mergers to accelerate the company’s growth
- to invest capital in new companies and ventures
We assist across the entire process and we monitor and coordinate all secondary activities in connection with legal and tax services.
Preparation of a transaction
Overview of investment opportunities
Through our broad network of contacts, we identify suitable acquisition candidates for our clients, whether in Germany or, in cooperation with our foreign colleagues, in all other relevant economic regions worldwide.
We align ourselves with our clients’ investment criteria, such as industry, range of services, turnover, legal form and ownership structure, and also contribute our experience and creativity from more than 20 years of buy-side M&A consulting. Our services go far beyond pure desktop research.
We select the 10 to 30 most relevant candidates from the, often, hundreds of analyzed companies who promise the highest strategic added value for our clients and the best transaction probability.
Even if the client already has a “favourite”, we create additional strategic alternatives, greater transaction security and, if necessary, a better starting position for determining the purchase price.
Structure and model of transaction financing
We create a detailed concept of transaction processing that defines the optimal legal form, financial structure and detailed schedule of the project. This phase enables us to work with the highest economic, tax, legal and time efficiency.
Candidate screening and initial contacts
Based on the results of the “long list” analyses, we select the most attractive companies together with the client and draw up a “short list” of candidates. We establish direct contact with these companies and make initial investment proposals.
Sometimes initial discussions are held without revealing the client’s name. We know from experience that maintaining discretion enables us to better understand the circumstances of the other party and its expectations of the future partner.
- the right choice of target company (complete overview of all possibilities)
- transparency about the actual values and development potentials of the acquired company (due diligence)
- securing transaction financing
- long-term involvement of existing management with appropriate incentive structure
- to address the post-merger integration at an early stage with the aim of achieving revenue and cost synergies
To attract financial investors, it is essential to have a significant investment story that thoroughly explains the company’s success factors and the impact on the control of key risk components.
Financial investors usually expect:
- Strong product/service offering, a technological edge and stable revenue and margins
- Appropriate return on capital employed
- Experienced management with many years of industry experience
- Protection of interests through special shareholder rights
- The possibility to exit after a certain period (resale of shares to other shareholders, a new investor, or listing on a stock exchange)
We have a wealth of experience in selling targets to financial investors, which enables us to assess their expectations and priorities.
„The management of a company interested in acquiring a company should behave as if it was piloting the plane just before the start. To do everything in the right order, it should not rely on your memory. You should have a list of things to do and know what to do if any of the activities does not lead to the expected goal. In particular it should see when to take off„. Russel A. Ackoff