Sell-side acquisition advisory services
An enterprise may be sold to a financial or a strategic investor. The latter will predominantly be looking for additional value arising from the deal (synergy); therefore, the value of the enterprise may be somewhat higher for these investors. An investor may acquire both holdings (majority or minority shareholdings) and assets (including an enterprise). As a rule, the transaction will be financed with both equity capital and loan capital. The selling process may take at least 4 to 6 months.
Sell-side advisory services include:
- Analysis of the enterprise that is being sold, with a valuation of the enterprise and an assessment of the synergy arising from the acquisition (see: Valuation of an enterprise). Analysis of the deal structuring options.
- Developing a sales strategy
- Compilation of marketing materials
- Mapping and choice of potential buyers
- Familiarising the investors with the enterprise and feedback
- Choice of an investor
- Due diligence
- Organising negotiations and specifying the terms of the transaction (term sheet, draft SPA)
- Preparing and concluding contracts
- Closing the deal
- Adjustment of the selling price
Buy-side acquisition advisory services
Enterprises that are aspiring to grow may need advice on finding investment objects, valuations and concluding the transaction.
Buy-side advisory services include:
- Developing the customer’s acquisition strategy/criteria
- Analysis and choice of the potential target enterprises
- Initial communication with the owners of the target enterprise (the acquirer may initially remain confidential)
- Valuation of the enterprise (link to the service: Valuation of an enterprise) for the initial indicative (non-binding) offer, as well as the assessment of the potential additional value (synergy) arising for a strategic investor
- Preparing an indicative offer
- Concluding a Letter of Intent and organising due diligence
- Organising negotiations and specifying the terms of the transaction (term sheet, draft SPA).
- Preparing and concluding the final contract
- Closing of the deal and adjusting the selling price