M&A and Corporate Finance advisory

M&A is the abbreviation of the term Mergers & Acquisitions. In simple terms, it refers to the sale of companies and the acquisition of other companies. After successful completion, an M&A process in its entirety is also often referred to as an M&A transaction.

In the case of a company sale, M&A consulting will include the following elements: The preparation of a (preliminary) company valuation, the holistic presentation of the company, its business model, market and potentials with an information memorandum, a comprehensive financial planning, the identification and approach of potential buyers, the gathering of offers, the conduct of negotiations as well as the coordination of the due diligence. As M&A advisors, we assume full responsibility for the success of the project up to the so-called closing.

M&A processes are complex, take a relatively long time (typically 6-9 months) and often involve a lot of money. Sellers and buyers naturally have different interests in terms of company valuation, risks, legal procedures and many other issues. On the buyer’s side, you are faced with experts who bring a lot of experience to the table. Therefore, involve specialists who represent your interests.

Typically, the process of a company sale 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, which we divide into four main phases: a) preparation and processing of company information and drawing up the longlist, b) approaching potential buyers and management meetings, c) preliminary contract and due diligence, d) contract negotiation and closing of the transaction.

The successful completion of an M&A advisory process depends on various factors: The state of the company, the market situation, the preparation of the sales process and the professional execution of the M&A mandate. Different buyers have different interests in the company to be sold. In the preparation phase, it is important to determine which buyers come into question, which results in the so-called long list. It is important to think holistically in this step: For which buyer is it an ideal addition in their scope, who could succeed in entering the market with the purchase of the company, etc. The goal must be to receive not just one offer from a buyer, but ideally several offers from which the most attractive buyer can be selected. During the sales process, there are many hurdles that can jeopardize a transaction. Solid transaction preparation and negotiation skills help increase the likelihood of a transaction. Our experience shows that typically out of 20 potential buyers approached, about three to five buyers show initial interest and of those, one to two potential buyers enter into serious negotiations. However, this can vary greatly depending on the topic.