We offer full range of services required for successful acquisitions of companies:
- M&A valuation, selection, brokerage and finding of suitable target companies,
- legal work (acquisition transfer documentation, tax considerations, due diligence),
- in cooperation with partners also accounting due diligence and report.
Below is an outline of required work, time and cost for acquisition of company with about $30 million turnover. To further inquire about our services please contact us.
Initial Analysis of Potential Targets
Initial screening of the industry and narrowing down the potential investment/ acquisition target based on selection by the client:
1. List of existing companies which “might be” prospects: 1,500€ (expected more than 100 companies – depending on request; 2 weeks)
2. “Might-be“ list narrowed down to “probable prospects”: 2,000€ (expected more than 30 companies – 1 week)
3. “Probable prospects” narrowed down to “prioritized alternatives”: 2,000€ (expected up to 10 companies – 1 week)
It is normal and common that as going through the process we find other candidates that might be added to the list in step 2, 3 or even later in the process.
Screening and Meetings with Prioritized Targets
We setup initial meetings to liaise about openness for investment / acquisition. Each meeting is attended by experienced negotiator. We provide report after each visit. We provide pictures and video report if not prohibited or impossible. This phase takes about 2-3 weeks and costs 2000€ per company.
If there is interest in continuing the negotiations from both sides, i.e. client and target company, then usually 4-6 additional visits take place. This phase takes about 4-8 weeks and costs 2000€ per company.
Cost for pre-negotiations / negotiation of the deal cost 10,000€ and takes about 8-12 weeks.
Following additional information is required to narrow down the selection of target companies:
- Ownership of buildings & land is required or can it be rented?
- SQM is required? Office, warehouse, workshop is required? Anything else is required?
- Which people and their skillsets are required and which are a good-to-have (if any)?
- Required condition of the company: excellent, OK, or poor?
- Current ownership structure – one or more owners? Or doesn’t matter?
Greenfield vs Acquisition
Would a Greenfield turnkey be an option? Setting everything up with people but no contracts yet? Finding space and people and prepare it based on the clients’ preferences. This is usually more costly (time and money) option but often preferable for a business with longer term vision and when there are specific needs for logistics/operations etc.