MERGERS & ACQUISITIONS – Growth
FAST GROWTH THROUGH TAKEOVER
The purchase of a company can strengthen the own market position, secure new technologies or facilitate or simplify the expansion into new foreign markets. This is particularly true if the acquisition of an attractive competitor succeeds. The risks associated with an acquisition must not be underestimated. Size should not be a major motive for an acquisition. The decisive criterion must be the achievable profit potential. It is also necessary to consider how an acquisition can be financed. This is obviously easier in economically strong phases than in period of weaknesses. For this reason growth investments, in particular, strongly follow the general economic cycle, as illustrated in the figure below.
INTELLIGENT INVESTING
In order to be able to correctly assess the benefit of a takeover, the following questions must be answered before the transaction is completed:
- Which company should / could be acquired?
- Which income effects can be achieved?
- What is the purchase price?
- How can the acquisition be financed?
A CUSTOMIZED WORK PROGRAM
Dependent on the task, we formulate a tailor-made work program. The main areas of activity are:
- Planning of acquisition strategies
- Search and contact destination addresses
- Background- and detail analyzes
- Execution of due diligence
- Determination of company value
- Coordination and moderation of the negotiations
- Ensuring the financing of purchase
- Assistance with the drafting of contracts
TARGETED SEARCH
Thanks to our efficient research methods and excellent contacts in Germany and abroad, we can already name potential purchase objects after a short time. You will receive our research results in a clear form. This provides a basis for the decision-making process. If you wish, we will accompany you until the transaction is successfully completed.
OUR EXPERIENCES
As a transaction-oriented team, we offer support based on comprehensive market knowledge and careful analysis. We have special expertise in cross-border transactions of small and medium-sized companies. Our consultants are experienced in negotiating with international parties. In addition, we have special knowledge in all financing questions.
Succession plan
SECURITY OF LONG-TERM SUCCESS
The change of generation is one of the biggest challenges for the entrepreneur. This is how he determines the future success of his company and prepares his own retirement. The sale of a company is one of the possible options. In some cases, suitable successors can also be found in their own family. Another possibility is to establish a new management. The entrepreneur can then retire to an advisory function.
QUESTIONS MUST BE ANSWERED
Which way is the right thing for the succession regulation, depends on the individual situation and the personal sighting of the owner. To make the best decision, many questions must be answered:
- When is the right time for the handing over?
- Which person can take over the responsibility?
- How high would the proceed be by sales?
- How can contractual regulations look?
- Which tax aspects are to be considered?
- How will the customers and employees react?
THE RIGHT WAY FOR YOU AND YOUR COMPANY
In these essential questions, we see ourselves as your contact partner and guide for succession. From our experience, we know how important it is to think in detail about the different possibilities for succession. The advantages and disadvantages must be carefully weighed and the chances of a successful realization assessed. In each of the optional ways, we can provide professional support and comprehensive support during implementation.
OUR PROFESSIONAL PROCEDURES
The following focuses of our activities have been developed from a large number of mandates:
- Development of different successor models
- Search and contact succession candidates
- Determination of company value
- Creation of sales expositions
- Searching and addressing prospective buyers
- Supervision of due diligence
- Moderation of shareholder meetings
- Coordination and moderation of sales talks
- Assistance with contract design
DRICON – YOUR INDEPENDENT PARTNER
The independence of DRICON is an important advantage. We are extremely discreet in our work and treat all obtained information with highest confidentiality. We have good contacts to a variety of companies, banks and investors. This gives us excellent opportunities to find suitable candidates for succession or as a buyer. If you are looking for a financing for a buyer or an MBO / MBI model, we can also support you.
Consolidation
FOCUS ON THE CORE BUSINESS
Economic motives and decisions are often behind the willingness to sell business areas, company shares or entire subsidiaries. Therefore it is often the intention to separate from loss-making business activities. Cooperation with joint venture partners is often terminated by the sale of shares. In other cases, sales intentions are the result of strategic considerations. When companies re-define their long-term goals, business segments or participations can become less important. The sale is a logical step for the strategic realignment.
LIQUIDITY EFFECTS IN TWO WAYS
A sale generally strengthens the financial strength of the former owner. This is mainly due to sales revenues. If deficit units are sold, there is a second effect. The earnings and liquidity of the parent company are not affected by current losses anymore. Sales can be doubly valuable to a company. In order to successfully complete a transaction, a sales object must be defined and sold. This is easily possible with a separate subsidiary. On the other hand, the sale of business units or highly integrated companies require considerable preparations.
CERTIFIED APPROACH
We accompany our mandators in the whole process as well as in single project phases:
- Analysis of strategical disposal options
- Spin-off sales objects
- Inquiry of the enterprise value
- Production of sales plans
- Search and address of prospective buyers
- Company of the Due Diligence
- Coordination and presentation of negotiations
- Support with the contract creation
FIND A BUYER
The result of a sales transaction depends on the persons involved and the procedure. Our consultants are experienced in contacting potential buyers and negotiating. We maintain good contacts with a variety of companies and potential investors. Through our relationships with banks and affiliates, we are also able to contact potential buyers on a global scale.
WITH DISCRETION AND SENSITIVITY
Our advisers work with a maximum on discretion and sensitivity. Thereby we avoid irritations with the affected employees and customers of our mandators. The sales of an enterprise or a unity are a luxurious process and require a professional approach. Only so a high disposal proceed can be achieved. We carry on with pleasure with you a non-binding conversation as we can support you.
MBO/MBI
REALIZE YOUR OWN IDEAS
Successful executives are increasingly ready to abandon a classic career as an employee. They would prefer to act on their own responsibility and to engage in entrepreneurial activity on an independent basis. Attractive opportunities can be found here with a management buy-out (MBO) or a management buy-in (MBI). In case of an MBO, the management acquires its current employer, while acquiring a foreign company in an MBI.
THERE ARE GOOD OFFERS
The chances for an MBO / MBI are as big as never before. A large number of interesting companies are subject to a change in ownership. Two key factors are decisive for this: the generation change in medium-sized family businesses and the concentration of international companies on their core business. MBO and MBI have become more and more established and proven in succession regulations and spin-offs
FINANCING
Special knowledge is required, in particular, to ensure financing. The purchase of the company is usually realized by a mixed financing. This includes, in addition to the capital of the management, loans from banks and venture capital of participating companies. In order to be able to convince capital providers, a viable concept must be developed.
THE STRATEGY
For successful MBO-/MBI transaction a professional strategy is necessary. We can support you with the following activities:
- Search for articles
- Analysis and assessment of enterprise
- Production of takeover draughts
- Realisation of the Due Diligence
- Production of integrated commercial plans
- Structuralisation of financing models
- Coordination and presentation of negotiations
- Support with the contract creation
YOUR SPECIAL PARTNER
We accompany and support the whole process MBO-/MBI as well as single project phases. We are glad about a non-binding conversation with you. For quite special reason we are the ideal partner for you and your plan: DRICON is itself the result of a successful spin-off from the Dresdner Bank group at that time with the participation of the management.
Copyright Roex / All Rights Reserved © 2017