Your M&A advisor for technology and growth companies

M&A is the abbreviation of the term Mergers & Acquisitions. In simple terms, it refers to the sale of companies and the takeover of other companies. Once successfully completed, an M&A process in its entirety is often referred to as an M&A transaction.

In a typical sell-side project, M&A consulting will include the following components: The derivation of a (preliminary) company valuation, the holistic presentation of the company, its business model, the market and the potential with an information memorandum, a comprehensive financial plan, the identification and approaching of potential buyers, the collection of offers, conducting negotiations and coordinating the due diligence. An M&A advisor should assume full responsibility for the success of the project right up to the closing.

M&A processes are complex, take a relatively long time (typically 6-9 months) and often there is a lot of money at stake. Sellers and buyers naturally have different interests with regard to company valuation, risks, legal procedures and many other points. The buyer will be represented by experts who have a lot of experience. You should therefore also involve specialists who can facilitate negotiations on an equal footing, represent your interests and ensure an excellent result.

The process of selling a company typically takes six to nine months, from the start to the successful completion of the transaction. The M&A process consists of a large number of individual steps that can be divided into four main phases: a) preparation of necessary materials, set-up of a virtual data room and creation of the longlist, b) approaching of potential buyers and conduction of management meetings, c) collection of offers, negotiation of basic terms and due diligence, d) final contract negotiation and closing of the transaction.

The successful closing of a M&A advisory process depends on various factors: The performance of the company, the market situation, the preparation of the sales process and the professional execution of the M&A mandate. Different buyers might have different interests in the company to be sold. It is important to think holistically: Which buyers might be interested in the technology, in a portfolio extension, market access or a certain customer base, etc.? The aim of a structured M&A process is to receive not just one offer from one buyer, but ideally several offers from which the most attractive buyer can be selected. There are many stumbling blocks during the sales process that can jeopardize a transaction. Solid preparation and negotiation skills help to increase the likelihood of a transaction. Our experience shows that out of twenty potential buyers approached, typically around three to five buyers show initial interest and of these, one to two potential buyers enter into serious negotiations. However, this can vary greatly depending on the subject.