Merger and Acquisition advisory

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:

  1. 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.
  2. Developing a sales strategy
  3. Compilation of marketing materials
  4. Mapping and choice of potential buyers
  5. Familiarising the investors with the enterprise and feedback
  6. Choice of an investor
  7. Due diligence
  8. Organising negotiations and specifying the terms of the transaction (term sheet, draft SPA)
  9. Preparing and concluding contracts
  10. Closing the deal
  11. 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:

  1. Developing the customer’s acquisition strategy/criteria
  2. Analysis and choice of the potential target enterprises
  3. Initial communication with the owners of the target enterprise (the acquirer may initially remain confidential)
  4. 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
  5. Preparing an indicative offer
  6. Concluding a Letter of Intent and organising due diligence
  7. Organising negotiations and specifying the terms of the transaction (term sheet, draft SPA).
  8. Preparing and concluding the final contract
  9. Closing of the deal and adjusting the selling price