We carefully understand the business model of the client and thereby develop a strategic plan based on the Merger/Acquisition plan layout. We identify the targets based on synergies & value drivers that help the clients to achieve the specified objectives. After that the targets are properly evaluated and based on certain parameters, they are prioritized. We approach them through our extensive network of private Equity/Venture Capital Funds & other intermediaries.
Later, we formulate the structure of the deal initiated with the due diligence process. Important role is played by us in closing the financial side of the negotiations. As the price & the form are key element, we ensure that the final price is optimum in the eyes of both parties.
After the negotiations are completed and the price is finalized, we assist the client in arranging the required finance. Besides, the purchase consideration can be paid in either form of cash, debt securities or equity of the acquiring company. Generally, cash can be raised from internal accruals and sale of assets.
It can also be refinanced by bank borrowings, public issue or private placement of debt & equity. Our expertise also enables us to arrange for bridge loans against the subsequent refinancing. When the shares of the acquirer are directly offered as purchase consideration to the shareholders of the target company, we then effectively determine the appropriate exchange ratio.
We also work in close coordination with the client and prepare a detailed information memorandum that can be presented to the potential acquirers/partners. Positioning of the company is one of the key success factors in the entire process that helps in understanding the objective/motive behind the decision for acquisition/strategic partnership.
We further help our clients to decide on the right type of partners based on immense analysis of Industry Structure & Variables. This helps in benefiting the firm in the long run through effective strategic direction. Our wide network of relationship with different companies, funds & other intermediaries helps us in the process.
We can play an vital role in the overall due diligence process through diligent negotiations to reach on the final definitive agreement with the respective partners ensuring smooth closure of the transaction.