The main motive of a buyer interested in acquiring a business lies in the potential cost savings and the growth potential that the transaction brings. Motives on the growth side include increasing market share, tapping new markets and buying in additional (core) competencies.
In our pre-merger strategy activities, one of the things we work out is how the potential for growing turnover as a result of a take-over/integration can be exploited optimally. The results of the analysis provide the framework for the subsequent integration process. What is more, they also provide valuable pointers for the actual transaction phase itself, primarily for the due diligence and target valuation.
Androschin & Partner Transaction Services elaborate the following in this phase:
- An industry-oriented integration concept (with alternatives, where applicable), thus providing the master plan for the subsequent post-merger integration
- An analysis and evaluation of the synergy potential with respect to costs and growth (based on one or more alternative integration concepts)
- The procedure for the integration (including timescales), in order to avoid losses in the transaction phase
- An indicative company valuation on the basis of conventional peer group multiples, past transactions and DCF methods