Supporting Shareholders decisions in a broaderscope from a strategic and financial view.
Solutions that could
spark an M&A
The MP Financial Advisory team aims to support Shareholders into a deep and supported reflection over the strategy and positioning of their business portfolios, leading to different approaches over a potential M&A strategy (either from a investment view or from a divestment/restructuring perspective). Our recommendable approaches may start from the following solutions to work on:
- Corporate and business unit strategy assessment
- Competitive analysis and strategy
- Economic forecasting and regulation challenges analysis
- New market development analysis / Business planning
- Portfolio optimization analysis
- Strategic resource allocation advice
From the previous approaches, a M&A strategy may be defined and further explored:
M&A Strategy Solutions:
Buy Vs Build considerations
Internal resources assessment, including capital availability
Portfolio management alignment
Assessment and development of internal M&A capability
Assessment of strategic fit, financial value and integration or divestiture needs
Target Screening Solutions:
Identification of potential targets
Screening of targets based on decision criteria
Development of target profile, investment thesis and valuation
Acquisition path analysis (reactive vs proactive)
Management of responsiveness attitude to target issues
Strategic positioning analysis and internal resources fit
Divestiture Preparation (M&A) / Restructuring solutions:
M&A solutions , in case of Value Optimization approach that recommends divestitures, spin offs, recapitalization or joint ventures
M&A solutions or Restructuring solutions, in case of Underperforming Businesses approach that recommends restructuring / turnaround, bankruptcy / reorganization or dispute Resolutions
The MP Financial Advisory Team aims to support our clients in new debt or recap engagements through a comprehensive and competitive process, namely by pursuing the following task blocks:
The characteristics of good corporate governance which boards of companies should aim to demonstrate include the following:
- Accountability: Acknowledge and assumption of responsibility for actions, decisions and policies
- Discipline: Commitment to accepted standards of correct and proper behaviour
- Transparency: Enabling stakeholders to easily review their actions and performance
- Independence: Avoiding conflicts of interest in the best interest of the organisation
- Fiduciary Responsibility: Acting in the best interest of all stakeholders.
According to the recommendations of CMVM – Comissão do Mercado de Valores Mobiliários (Portuguese Securities Market Commission) on Corporate Governance, the board of directors should include a sufficient number of non-executive directors, whose role it is to continuously monitor and assess the management of the company by the executive members of the board. The distancing of non-executive members from the current management of a company guarantees an adequate capacity to analyse and assess strategies outlined and concrete decisions made. In this context, non-executive directors (i.e. the members of the board of directors who are not part of the executive board or to whom the current management of the company has not been delegated) are responsible for scrutinising the management of the company, in a continuous and informed manner, monitoring the activity of executive members of the board of directors and making judgements with regard to the level of compliance with the company’s strategy. The joint responsibility of all board members, furthermore, ensures reciprocal collaboration in a demanding atmosphere which promotes better management practices.
The composition of boards and the main skills they require in order to perform their governance roles include:
- Strategic thinking skills
- Analytical skills
- Good communication skills
- Knowledge & Experience of the industry or sector
- Ability to balance the interests of all stakeholders
- Diversity of experience among members
At MP, our team comprises senior C-level professionals across several industries in different geographies with the demanded skills to take oversight through supervisory and non-executive mandates, on the fields identified in our services portfolio.
according to the best
Typical contexts of the need for financial restructuring:
- Growth below expectations: breach of covenants and business value below the debt value
- Creditors prepared to renegotiate credits
- Balance sheet deleveraging trend (sale of assets)
In order to support the Clients through the Financial Restructuring process once identified, we may propose three solution sets:
INDEPENDENT BUSINESS REVIEW (IBR)
Business Plan Review
Risks and alternative options analysis
IBR is a financial review that provides an unbiased view on the company’s forecasts by utilising facts and figures provided by the company and external resources. IBRs, that may be requested by any creditor which holds a financial interest in the company, are used to support credit and investment decisions.
Understanding of the economic and financial situation of the company and the credit coverage level
Analysis of the evolution of financing needs (need to renegotiate?)
Analysis of alternative financing structures
Identification of new financing partners and alternative solutions to strengthen the company’s financial autonomy (own funds)
Analysis of alternative financing instruments
Support in negotiations with financing entities
PLANNING AND CONTROL
Treasury financial modelling
Ensure consistency with historical performance and with the conclusions of any due diligence (if any)
Sensitivity analysis of critical variables and identification of adjustments
Policy Design and payment authorization procedures to be adopted
Periodic reporting with (i) a comparative map between the real and estimated (ii) variance analysis (iii) map of cash position revised for the next period
Control ceilings used in accordance with the procedures set
Currently, the most innovative organisations are seeking to unlock greater value from existing assets and ongoing capital expenditures — as well as new acquisitions, investments and complex corporate arrangements.
The valuation of a company or business requires sound knowledge of the market, and through application of accurate valuation techniques. The main value drivers of the activity are analysed and clearly and objectively interpreted by MP Financial Advisory team and compared with market practice. Utilising our highly specialised skills, and a deep understanding of our clients’ businesses and industry, we provide transformative insights to help turn critical and complex issues and transactions into opportunities for growth and long-term success.
From equity to capital assets, our team helps clients, quantify, manage and build value. We serve as advisors on decisions related to mergers and acquisitions, litigation and disputes, bankruptcy and reorganisation, strategic planning and compliance.
Our services include:
- M&A Support: We provide valuation advice to management and stakeholders in M&A transactions, strategic reviews and capital investment appraisals throughout the entire deal cycle.
- Fairness opinions: We advise boards with independent fairness opinions in the context of public and private transactions.
- Transaction compliance support: we provide valuations related to financial reporting.
- Contentious: We act as an expert witness, an independent expert appointed to determine a value or an advisor to one of the parties in litigations and arbitrations.
- Fund valuation: we provide funds with recurring portfolio valuations for various purposes.