Whether you would like to take over a competitor or extend your portfolio, or you are considering a management buy-out, buying a company is a highly complex matter that requires a lot of know-how and often involves considerable financing requirement.
We support you in the search for a suitable company, the structuring, carrying out audits, negotiating terms and financing.
The purchase process is planned and structured well right from the beginning. Together with you, we determine the goals you want to achieve and we search for suitable companies. If you do not wish to act directly as a purchaser, we will make initial inquiries and find out whether the companies you are interested in are for sale.
We help you put together an ideal financing mix for your purchase. If necessary, we will negotiate with financial institutions and identify the right partner or investor for you.
The company is thoroughly assesses by us, so that you know what risks and liabilities you are likely to encounter. We scan all major factors, filter out those that are dangerous and ensure that your interests are put forward during the negotiations, so that there are no unpleasant surprises for you later on.
In the M&A sector in particular, excellent results can be achieved through wise, prudent contract drafting, and individually tailored, healthy financing mix. However, it is advisable to consult with experts, who have the necessary experience and professionalism in both areas. If necessary, they also negotiate with banks and credit institutions on your behalf, and can also find a suitable partner/investor.
In order to avoid a one-time payout, a perpetuity, for example, can be agreed upon. The buyer is paying the seller an annuity instead of the full purchase price at once. Earn-out clauses, on the other hand, are offered when the expected future profitability of the company is a hotly debated topic. In this case, the purchase price of the company shares will be paid upon the closing of the contract, while the disbursement of remaining parts is done based on performance at later stages.
Ideally, an acquisition process lasts up to three months, however, may also extend over years, depending on the complexity of the transaction. It is usually divided into the following four phases:
In company acquisitions, the target company must be assessed and evaluated in its whole complexity. This protects against erroneous decisions. Managers tend to “adorn the bride” and “whitewash” corporate figures, and not only in times of crisis. Here lies the difficulty of assessing the company properly. Open compensation claims, long-term continuous obligations and pending court proceedings are often just the tip of the iceberg.
Professional analysis, audits and negotiations help ensure that upon the conclusion of the contract, all liability issues have been resolved, dangerous risk factors have been eliminated and no hidden defects remain. Should this not be possible with own available resources and staff, it is recommended that external specialists, such as investment banks, auditors, taxation law experts and/or lawyers be consulted.
Ultimately, what determines the success of the transaction is whether the purchase price is proportionate to the risks and rewards.
Even companies which have their own M&A department at disposal, often engage an investment bank or an M&A advisory to rely on their experience and expertise.
The company is thoroughly checked and assessed by us, so that you know what risks and liabilities you may have to cope with. We scan all key factors, filter out the dangerous ones, and put your interests across in the negotiations, so that you don’t encounter any surprises afterwards.
We can help you create an ideal financing mix for a company acquisition. If necessary, we will negotiate with banks and credit institutions and provide you with the right partner/investor.