What advice can we provide for acquisitions?

For strategic purposes, a company may decide to take over an identified target in its market, or it may choose to diversify its activities and invest in another sector.

The service we offer covers all steps in the process, from identifying suitable targets, carrying out the valuation and conducting the negotiations through to the transaction closing.

1) Acquisition searches

Actively and systematically screening your market for targets will serve your interests better than waiting to be contacted.

In the framework of a buy mandate, we support you in identifying and approaching targets, and secure negotiation rounds for you.

Our approach

• We propose a list of potential targets based on market research, our network and referrals from other advisers
• We develop a summary profile for each company, including a preliminary valuation
• We contact the selected targets and develop relationships
• We use a network of "sector specialists" to constantly enrich our deals with their knowledge and relevant business contacts

2) Target valuation

Naturally, both sides of the deal will have different ideas about how much the target company is worth: the seller will tend to value the company as high as possible, while the buyer will try to get the lowest price he can. 

There are, however, many recognised ways to value companies.

Besides, acquisition valuations are complex, because the valuation often involves issues like synergy and control, which go beyond the financial valuation of the target company.

Our approach

• We understand business dynamics and value drivers
• We adapt our valuation to the transaction context
• We use recognised valuation techniques (discounted cash-flow, multiples and net asset)

3) Due diligence

Due diligence is a critical step in the acquisition or sale process.

It provides a potential investor with an independent assessment of the business, focusing on the financial perspective. It gives peace of mind by confirming synergies and reassuring that there are no “black holes” or “skeletons in the cupboard”.

• Are there any deal breakers?
• Are projections accurate?
• Are there any business risks impacting the value?
• What warranties and indemnities need to be secured?
• Are the assets and liabilities correctly valued?

Our approach

• We propose a pragmatic, cost-effective approach focusing on an early go/no-go decision
• We issue a report highlighting major deal issues and make recommendations

4) Negotiations

A clear negotiation strategy, based on thorough preparation and analysis, will be essential to maximise your chances to get the best deal.

Our approach

• We keep you in the driving seat of the negotiation
• We support your views with financial analysis and negotiation tactics – a non-emotional approach