PREPARATION FOR A TRANSACTION
A successful divestiture or capital raising - resulting in best possible valuations and other business terms - is based on proper preparations for the transaction in due course. A properly prepared transaction directed by the seller can be executed in a timely manner in app. 6-8 months. During the preparations and before actually going to the market we:
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review the business plans, prepare a business valuation and assess opportunities for maximising value,
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identify potential negative factors and how to mitigate them,
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identify most likely potential buyers / investors,
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formulate strategy for the divestiture / capital raising.
TRANSACTION ADVISORY SERVICES
In the course of our sell-side M&A assignments we help our clients to identify those strategic or financial investors who are the most likely candidates to offer the best possible terms for the proposed divestiture.
Before actually starting the sales process we make sure, that the proposed transaction is properly prepared and professional marketing materials are compiled. As advisors, we contact the previously identified and carefully selected potential strategic and financial investors, and upon signing confidentiality agreements, we furnish them with detailed set if information regarding the company, the proposed transaction and the divestiture process. Based on indicative offers, preferred bidders are selected and provided opportunity to conduct their due diligence.
Following a careful evaluation of binding offers received, we advise our client on the selection of the bidder(s) to start contractual negotiations with.
We support our clients on an ongoing basis to achieve their goals throughout the contractual negotiations, up until successful closing of the transaction.
CAPITAL RAISING
Our capital raising advisory services help our clients to raise equity to fund their expansion plans. In case of such projects, typically private equity and venture capital funds acquire minority interests that they normally hold for a period of 4-5 years before exiting.
We are members of the Hungarian Private Equity and Venture Capital Association and have good access to PE and VC investors active in the Central-Estern European region.
BUY-SIDE TRANSACTION SERVICES
Should our clients wish to develop their businesses above their organic growth rates, or should they wish to exploit synergies, a carefully planned acquisition could provide an appropriate solution.
As part of our buy-side transaction advisory services we help to identify appropriate target companies, contact holders of these companies and participate in due diligence together with other (e.g. legal) advisors. Based on our business valuations of the target company we also propose appropriate purchase price to our clients. We also participate in formulating the negotiating strategy and assist our clients throughout the negotiations and closing of the transactions.
BUSINESS VALUATIONS
During a divestiture or a capital raising process, it is of utmost importance that our clients have a realistic view as to the value of their businesses. Otherwise their business could either be divested well below its fair value, or in other cases divestitures or capital raisings could simply fail due to unrealistic price expectations.
We perform our business valuations based on Discounted Cash Flow Analysis (deriving values on the basis of future cash flow producing capabilities of the business), Comparable (Listed) Companies Analysis and Comparable Acquisitions Analysis valuation methodologies.
In order to arrive at most recent and reliable valuation multiples for comparable acquisitions and companies, we make use of global valuation data bases covering all geographic regions and industry segments.