Advisory
Mergers
& Acquisitions
Extracting the maximum value from each potential deal.
Finding the best
solution to add
value
The acquisition of a business has the ultimate objective of adding value to the company and to its shareholders. However, any transaction involves a potential risk.
Our independence and professionalism enable us to help our clients find solutions with the best balance between value and risk variables..
We help our clients to respond to the most important strategic issues. Is this the best option to acquire a business to increase market share or, alternatively, to concentrate on diversification to new markets? Is it better to find companies that provide vertical integration, or choose others that create synergies with your company?
Our team is involved in the whole decision process, leading the planning, execution and completion of the transaction.
The tasks, which are carried out in strict cooperation with our clients, typically include the following steps:
- Identification of target companies that present the criteria defined for the acquisition
- Contact the shareholders of the target companies
- Indicative valuation of each of the selected companies;
- Detailed analysis of the economic and financial impact of the transaction
- Structure of the transaction
- Support in the negotiation process
- Coordination and support in the due diligence process
- Coordination and analysis of the contracts and other legal documentation needed for the transaction
- Completion of the transaction
The complexity of the sales process of a company or business requires a level of commitment and knowledge that is becoming progressively more difficult to find in business organizations.
Our network, experience in sales processes and knowledge of the main private equity players ensure that Magnify Partners will find the best solution that exceeds its clients’ expectations and increase their success rate:
We will support the shareholders and/or management throughout the entire process, namely:
Ensuring the
success of your
transaction
- Review of the divestment options
- Structure of the transaction
- Valuation of potential market value
- Preparation of a confidential Information Memorandum about the business
- Identification of and contact with potential strategic or financial investors
- Support in the negotiation process
- Coordination and support in the due diligence process
- Coordination and analysis of the contracts and other legal documentation needed for the transaction
- Completion of the transaction
Management
Buy-Out
Invest in the business you know best:
the company you work in
Which manager never thought of the possibility of becoming a shareholder of the company he/she works in ? And which shareholder or owner of a business that intends to sell his/her shares, never considered selling them to its managers ? These are the kind of questions that management teams and/or shareholders of the most varied business sectors ask often. An MBO is an ambitious acquisition process, but one that does not necessarily have to be complex and difficult.
Our team of experienced professionals, together with the team of future shareholders, analyze all the aspects of the business for it to be a fast, transparent, confidential and supported process.
Management
Buy-In
Create your own opportunity
In all business sectors there are inefficient companies with resulting low profitability and competitive companies with significant growth potential. In both cases there are opportunities for an ambitious and competent management team to have their chance to do better.
Our MP Financial Advisory team can help you to find the company that best fits your profile and experience and that will enable you to maximize your invested capital in the medium term.
We support our clients in all the phases of the process, namely:
- Identify the companies (applies only to MBI operations)
- Contact the shareholders of the target company
- Prepare a Business Case and contact the investors (essentially private equity) and other investors (banks)
- Prepare a Business Plan (document to present the company to potential investors and financers) to illustrate the business evolution expectations from the standpoint of the management team
- Perform a valuation of the target company (before and after the acquisition) and structure the transaction (equity, senior debt, subordinated debt, etc.)
- Provide support in the negotiations with the main players in the acquisition process (namely the target company’s shareholders, private equities and financial entities)
- Coordinate and support the due diligence process, analyze the contracts and other legal documentation needed for the transaction
- Provide support in completing the transaction
Support in specific stages of the buy/sell-side process, according to each client’s specific needs to ensure a successful operation, which could include the following tasks
(non exhaustive list):
Support under
a tailor-made
approach
Buy-side assistance
Pre-deal evaluation > our involvement will comprise initial assessment of a target company to identify key risks and potential deal breakers, using mainly publicly available information and other business intelligence data, prior to deciding on full-scope due diligence.
Contract and completion procedures assistance > these tasks aim to advise on the financial aspects of the draft sale and purchase agreement related to the acquisition of the target company, including the analysis of key risk areas and issues identified previously during full due diligence procedures.
Sell-side assistance
Pre-sale analysis > Provide purchasers with greater certainty over the nature of the business and the characteristics of its cash flow, supporting pricing decisions and the level of gearing the structure will support. In addition, ensure additional credibility to the facts, figures and information provided in the sales memorandum, and initial identification of value critical issues.
Information preparation support > Assistance in preparation of information memoranda, data rooms and competitive auctions addressing purchaser queries
Contract and completion procedures assistance (namely draft sale and purchase agreement) > i) Pre-Agreement: assistance in identifying and articulating issues of values related to price fixing and respective mechanics for the deal closing, as well as assistance in SPA negotiations; ii) Post-Agreement: assistance in protecting or generating value through execution of any SPA completion mechanism.