• M&A

M&A

Sell-side M&A

During a sell-side M&A project we undertake to maximize the purchase price available to the owner for his or her stake in a particular company. The success of the sale and the purchase price available in the market depend to a large extent on whether the selected consultant supports the sales process with the appropriate expertise. During our work:

  • We get to know the situation of the owner; we agree on the objective and the idea of the sales.
    • Evaluate the company and estimate the purchase price realistically available in the market.
    • We make suggestions on the duration and tasks of preparing for the sale. Preparation can take longer (for example: separation of ownership and management functions, implementation of investments).
  • We make suggestions on the ownership structure in which it is expedient and efficient to conduct sales.
  • We look for potential investors.
  • We prepare investment brochures on the basis of which potential investors can make an indicative offer to the owner.
  • We coordinate the due diligence so that the selected investors can be convinced of the real situation of the company.
  • Conduct contractual negotiations with investors and serve the information needs of investors’ financiers to provide the necessary resources.
  • After concluding the contract, we follow the processes and the fulfilment of the obligations undertaken in the contract, so that the purchase price flows properly and the ownership is transferred to the new owner.

Contact: Fekete Márk [email protected], Kerekes Bence [email protected]

 

 

Buy-side M&A

Making a good investment decision means buying into the right destination, at the right time, at the right price, which is a difficult genre. In order to avoid bad decisions, we think according to the following methodology:

  • Gather public information available about the target company, analyse the industry, the target company’s markets and competitors. We involve the industry experts belonging to our network of contacts in our analyses, and we rely on our previous references and experiences.
  • Evaluate the target company and determine the value range within which we consider it worthwhile to bid. We will prepare the indicative offer.
  • We perform a due diligence of the company, which may include financial, legal and tax parts as well as technological, real estate or other professional due diligence. If necessary, we involve a partner law firm or tax experts and auditing specialists for legal and tax due diligence.
  • We structure the transaction. We support our investment partners in obtaining the necessary resources. We address banks with the right expertise, ask for offers and lead loan negotiations.
  • We lead the contractual negotiations, the bargain, we formulate proposals on how to manage the risks identified during the screening.
  • After concluding the contracts, we ensure that the obligations under the contracts are fulfilled by the parties, we support the preparation of the loan calls and we participate in the closing event.
  • Throughout the process, we monitor the company's performance, monitor the market and significant economic events so that no unpleasant surprises occur to the buyer either before or after the purchase price is paid.

 

Contact: Fekete Márk [email protected], Tárnok Róbert [email protected]

 

Capital raising

Capital raising is accompanied by the partial transfer of ownership, therefore in many respects we perform tasks on behalf of the existing owner that fit into the process of the sale of the company. At the same time, some potential investors are specifically looking for target companies in which, by raising capital, they can not only acquire a valuable stake, but also gain a valuable partnership.

From this perspective, the steps of a company acquisition come to the fore. Whether raising capital on behalf of an existing owner or an investor, it is definitely an extremely exciting area of our services, similar in many ways to marriage:

  • During capital raising, the owner does not leave the company, but the ownership structure expands and a new ownership community is created. It is key for each party to find a partner who has the trust, with whom they can imagine a common future, who they can support in trouble if needed, and with whom they are happy to share the fruits of the relationship. We effectively recognize the expectations of our partners, explore potential synergies in various investor relationships and help select the right partner.
  • In some cases, even before capital is raised, relationships are alive that are built on complete trust - love at first sight. However, we are careful, we consider it expedient that before marriage the partners get to know each other better, have a cooperation for a while and the trust between them gradually strengthens. We also support the conclusion of marriage contracts in the form of a syndicate contract. It is not possible to regulate the cooperation of the parties in all respects, but important corporate governance issues and forms of ownership can be agreed in advance.
  • Capital raisings are marriages that usually end in divorce. It is good if this is done in a planned, peaceful way, to everyone’s satisfaction, as it means that the capital raising has achieved its goal and the investors have achieved a fair return. Therefore, we recommend that we pre-define exit strategies and return expectations.
  • A bad marriage is full of quarrels, just as a deteriorating system of ownership is full of conflicting situations. In such a situation, we will try to find a common voice between the parties and will do our utmost to maintain cooperation until a lasting solution is found. We keep in mind that it is in the fundamental interest of all parties to keep the crisis of the ownership community to a minimum in the company.
  • Our own work is also based on trust, so our partners often do not count on us just as experts. If we think a transaction is worthwhile, we are ready to make a commitment to our partners with capital. Can you offer more than that?

 

Contact: Fekete Márk [email protected]