Solutions
Transaction Advisory
Deloitte’s Transaction Advisory team provides assistance to its Clients in corporate Mergers and Acquisitions (M&A). Our Clients include owners selling their companies, as well as investors interested in acquisition. We lead Transaction processes on both the sell and buy sides in close cooperation with our Clients, taking into account all the strategic, financial and tactical aspects.
Our work covers the entire Transaction process from the first considerations to the successful negotiation and signing of the Sale and purchase agreement (SPA).
Transaction
Our experts ensure that all stages of the Transaction process are smooth and efficient for our Clients. Please click on the icons to see how we can contribute to the success of the Transaction at each stage.
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Planning
Planning
The intention to sell a Company may have several reasons. In case of large institutional companies some units may be sold in response to a change in strategy, the rationalisation of the operations or the optimisation of resources or capital. In case of private, family businesses a potential Transaction may be considered due to a generational change in the founder family or to support future growth from a financial and strategic point of view. Discussions at an early stage help clarify motives and expectations regarding the Transaction.
Our team will design the optimal Transaction strategy and the Transaction process that best suits our Client’s preferences.
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Preparations
Internal preparations
Preparation for a Transaction always includes considering and analysing the business plan, growth potentials and potential areas for improvement, as well as defining the Company’s indicative value range. All this requires active cooperation with the Seller and the Company’s management. When it comes to complex transactions it is worth considering a valuation for the whole business, which is a comprehensive valuation estimate in concert with prevailing accounting, tax, and regulatory codes.
During our work we ensure that internal preparation for the Transaction is as efficient as possible.
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Identifying investors
Identifying investors
Identifying the number and quality of investors involved in the Transaction process is key to success.
Our team maps potential local and international investors in terms of strategic fit, corporate culture and financial firepower, and recommends a list of investors to the Seller to be invited to the Transaction process. Our aim is to generate strong competition to reach the maximum sales price for the Company.
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Information package
Preparation of sales documents
Sales documents summarise the Company’s most important values, which give a first impression to investors of the Company; therefore their quality is vital. First we prepare a short, typically anonymous summary material (Teaser) of the Company to assess investors’ interest. Then we prepare a detailed Information Package for interested investors, being released to them after signing a Confidentiality Agreement.
Our team prepares these documents in close cooperation with the Company’s management to highlight the Company’s main values. We provide interested investors with information sufficient for the indicative bids, without sharing any sensitive information.
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Due diligence
Due diligence
If required, depending on the party we support in the Transaction, we perform a detailed vendor or buy side due diligence on the Company. Financial, tax and legal due diligence is essential in any Transaction, but we are ready to provide commercial and environmental due diligence, too.
Our due diligence report contains key findings and potential risks; therefore greatly contributing to a successful Transaction both on the sell and buy sides.
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Investor meetings
Investor meetings
Communication between the Seller and shortlisted investors is essential as one crucial criterion for a successful Transaction is continuous discussions on the Company’s future. It is vital that the Seller gets in contact with prospective investors to discuss the Company’s potential future directions.
Our team ensures efficient communication between the Seller and the investors: we provide assistance from the first contacting to the final negotiations.
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Negotiations
Negotiations
Our team evaluates incoming bids in close cooperation with our Client and leads negotiations on his behalf.
We regard a Transaction successful if we have found the right partner for the Seller’s future goals, with an attractive sales price and favourable terms and conditions.
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Integration
Post-merger integration is a complex task with a range of risks and challenges, being critical to exploiting synergies and realizing value creation. In alignment with the new owner’s demands, our team develops the integration strategy in cooperation with the Company’s management, prepares the related operative plans still before Transaction Closing, and takes part in implementing the integration after Closing as well.
Details
Planning
The intention to sell a Company may have several reasons. In case of large institutional companies some units may be sold in response to a change in strategy, the rationalisation of the operations or the optimisation of resources or capital. In case of private, family businesses a potential Transaction may be considered due to a generational change in the founder family or to support future growth from a financial and strategic point of view. Discussions at an early stage help clarify motives and expectations regarding the Transaction.
Our team will design the optimal Transaction strategy and the Transaction process that best suits our Client’s preferences.
Details
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