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Mergers & Acquisitions (M&A)
Efficiently screen potential acquisition targets based on client's requirements and engage in strategic relationship-building to facilitate successful pre-deal communications & negotiations.
Mergers and Acquisitions (M&A)
M&A Target Screening
Clearly outline criteria for potential acquisition targets including factors such as revenue, geographic location,specialization/expertise, size, product portfolio, technology, synergies, etc.
Research the local market to understand the current landscape, trends, and potential growth areas.
Collaborate with government agencies and associations as relevant to identify and list potential M&A candidates.
Attend industry events, conferences, and trade shows to meet potential targets.
Use a combination of online research, market intelligence, and broader industry networks to identify potential acquisition targets.
Evaluate potential targets based on financial performance, market share, customer base, and growth potential. Consider factors like the quality of management, operational efficiency, and any existing succession plans.
M&A Target Engagement
Build relationships with CEO and senior stakeholders of target companies. Craft a tailored approach to express interest in exploring potential M&A, while maintaining confidentiality during the initial outreach.
Liaise and set up initial meetings between Client and target companies for initial exploration of synergies and goals.
Assist with the initial target valuation in collaboration with strategic partners, analysing factors such as financial performance, growth prospects, intangible assets, and comparable transactions in the industry.
Assist in the setup of client delegations to visit target companies for meetings, workshops and company evaluation.
Recognize and address potential obstacles to a sale while mitigating key risks that may arise in the pre-deal phase.
Pre-LOI Due Dilligence
Conducted at the outset to determine whether to pursue a bid at all, and at what valuation range. This step helps avoid expending resources on unattractive targets. The process involves a high-level assessment based on preliminary due diligence materials provided by target companies, including:
- Financial Due Diligence: Analysis of the target's financial performance, including historical and projected financials, ratio analysis, operational efficiency, preliminary valuation analysis, accounting practices, and tax implications.
- Operational Due Diligence: Assessment of the target's operations, including business model, management team/structure, manufacturing capabilities, supply chain, supplier relationships, sourcing strategies, technology, and intellectual property.
- Legal Due Diligence (Optional): Review of the target's legal and regulatory compliance, including governance, pending and active litigation, intellectual property rights, and antitrust concerns. Strategic M&A partner costs such as Law firms would be charged in addition.
- Commercial Due Diligence: Evaluation of the target's market position, commercial structure, customer base, customer retention, customer acquisition costs, supply chain, supplier/vendor relationships, and growth potential.
- Synergy Assessment: Identification and quantification of potential synergies between Client and target company, as well as cultural fit and strategic fit.