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Acquisition

Your challenges 

You want a deal:

• at the best price,
• with full knowledge of the situation of the target company in order to take out the necessary guarantees,
• with optimum financing over the period of investment.

The key success factors of such a transaction are:

• prior analysis of the target company,
• valuation of the transaction,
• determining financing requirements and methods

Our solutions 

Understanding the normalised profitability of the target company:

• Comparison of budgeted versus actual data,
• Review of financial performance per product line, site, contract, client,
• Identification of non-recurring elements,
• Analysis of working capital requirements (average level, seasonality),
• Analysis of investment levels and capital intensity of the target company.

Identifying and analyzing the elements used to determine the purchase price:

• Review of assumptions used for forecasts,
• Review of forecast coherence in light of past performances,
• Restatement of forecasts in light of (i) the investor's assumptions, (ii) identified risks and opportunities,
• Valuation as well as sensitivity to key identified variables,
• Review of net debt.

Drafting an appropriate price adjustment mechanisms :

• Assistance in negotiating an appropriate price adjustment and deferred payments (for example, earn-out): defining the indicators to be monitored, preparing the implementation schedule and the data control methods.

Identifying all risks covered by the vendor:

• Inventory and review of all identified risks and analysis of how they are taken into account via inclution in the company valuation, in a price adjustment, or by obtaining a representation or a warranty,etc,
• Analysis of possible coverage by a representation and warranty insurance policy.

Modelling financing requirements during the investment period