HOW CAPITAL EXPERTS CAN HELP
An acquisition is a major milestone in the life of a company. Whether large or small, an acquisition often has a profound effect on the acquirer. A bad acquisition has over and again proved to be devastating. Therefore, it is crucial that the initial decision to enter into the acquisition process, the actual structuring of the acquisition as well as the final decision to complete the acquisition are done with the utmost care and supported with the best possible information and advice.
Too often, acquirers obtain advice from various accountants, lawyers, brokers and other general advisors who may play an important specialist role in the process but do not have the comprehensive transactional experience required to efficiently and professionally coordinate the entire acquisition process and advice on the appropriate course of action at every stage.
Our team of expert help you grow by acquiring other business entities by working in sync with your objectives of the acquisition.
We are dedicated to providing our professional acquisition services to medium-sized companies, typically those with revenues ranging from RM5-100 million. We are equipped to take charge of the entire acquisition process from start to finish and also coordinate other advisors (including lawyers, auditors, and tax experts) that may be necessary to complete the transaction successfully. We are also experienced in situations where a client requires assistance only with a part of the acquisition process, such as negotiating the final sale and purchase agreement.
THE ACQUISITION PROCESS
We follow a logical and disciplined acquisition process specifically designed to meet the needs of mid-sized companies. This process is aimed at achieving the following: first and foremost, to reach the GO or NO-GO decision (acquire or abandon); second, to negotiate the best possible terms for the acquirer while still winning the transaction; and third, to discover the hidden risks and liabilities of the targeted business. A typical acquisition goes through the following stages:
Studying the acquirer’s business. In order for us to be able to properly advise the client on an acquisition, we first need to understand the client’s business so that we can identify potential compatibility problem areas and asses the synergies that can be realized from the merger. Identifying and, more importantly, placing a financial value on these synergies plays a crucial role in determining the “walk-away” price beyond which the acquisition would be too costly.
Identifying the acquisition target. We assist clients in selecting among several potential targets and even finding appropriate targets, although in most instances clients already know which company they wish to acquire. We draw on a wide network of local contacts and data sources in order to identify all possible acquisition candidates and also to find out crucial information about these targets.
Due diligence and Valuation. Managing comprehensive due diligence, based on knowledge and understanding of the acquisition target, as well as of potential legal, financial and operational risk, is one of the key stages of the acquisition process. Effectively running the process of examining the target ensures that there are no painful surprises in store for the acquirer. Furthermore it is the process that allows the acquirer to determine the price it is prepared to pay for the target. Due diligence is frequently overlooked or under-appreciated, often leading to failed transactions. While proper due diligence does not entirely eliminate the risk of overlooking a critical fact, it does greatly reduce that risk. Furthermore, a proper due diligence will help uncover potential problems against which the acquirer can protect itself by properly structuring of the transaction.
Coordinating the Closing. Even after an agreement on price and terms is reached, much work remains to complete a successful acquisition. We maintain the momentum of the transaction as documentation is prepared by lawyer. Our experience enables us to ensure our client’s interests continue to be effectively represented in this final critical stage.
Benefits of engaging us: Identifying suitable targets either locally or abroad; Investigating potential targets and initiating discussions; Securing financial support; Negotiating, structuring and closing the deal.
Timetable for Acquisition
The length of the acquisition process varies greatly depending on each specific situation. It can take as little as a several months for the most straight-forward transactions or over a year for more complex deals.