In M&A deals, there are typically two types of acquirers: strategic and financial. Strategic acquirers are other companies, often direct competitors or companies operating in adjacent industries, such that the target company would fit in nicely with the acquirer's core business. Financial buyers are institutional buyers such as private equity firms that are looking to own, but not directly operate the acquisition target. Financial buyers will often use leverage to finance the acquisition, performing a leveraged buyout (LBO).
The vast majority of acquisitions are competitive or potentially competitive. Companies normally have to pay a premium to acquire the target company, and this means having to offer more than rival bidders. To justify paying more than rival bidders, the acquiring company needs to be able to do more with the acquisition than the other bidders in the M&A process can (i.e., generate more synergies or have a greater strategic rationale for the transaction).
In today's highly competitive market, spotting value creation opportunities as well as understanding risk pre acquisition is key to driving value on completion and under ownership. Our Private Equity team works with our specialist sector teams which enables us to provide insights across all business sectors. This in turn helps facilitate the identification of strategic opportunities for buyouts.
Deal Structuring
One of the most complicated steps in the M&A process is properly structuring the deal. There are many factors to be considered, such as antitrust laws,
securities regulations, corporate law, rival bidders, taxes, accounting issues, contacts, market conditions, forms of financing, and specific negotiation
points in the M&A deal itself.
We help identify key risks and rewards throughout the acquisition life cycle, even for the most complex deals. We help you align deals with your strategic business objectives, maintain compliance and enhance value from integration and potential upside opportunity. Our team of specialists helps you focus on the key questions during the critical stages of planning and executing an acquisition.
We blend sophisticated capital markets expertise, with local market presence to negotiate customized financing packages that allow our clients to achieve their goals.
Our experienced team build robust, transparent financial models covering all circumstances and across a wide range of sectors. Our approach is to start with a clear understanding of the situation and design a bespoke model using proven methodologies and techniques. The advantages of our models include creating outputs and usability that are designed specifically for the user, as well as providing the flexibility of assumptions to perform sensitivity analysis.
This insight into current market practice ensures we negotiate the best deal for you throughout your transaction. Our team has the experience to help guide and support management teams through the process. We advise management teams on structuring, valuation, financing and tax planning and assist them to approach the vendor with a credible bid.
Our team can engage with you to:
Our experts partner with clients on corporate planning, providing perspective not only on immediate value and impact, but on long-term implications. We work closely with management and other advisers to leverage and complement their knowledge and ensure maximum impact, and actively support implementation and skill building.
