Acquisition
Montell & Partners helped a client to analyze the market for potential acquisitions to invest in and to create an acquisition strategy. The first step was to create a model that could identify companies from selected key performance indicators including size, profitability and industry. A second list was created by contacting business angels and financial investors such as private equity actors in order to identify which companies that were interested in new investors and which investors that were interested in an exit strategy.
The identified companies from the two lists were presented to the client who wanted a further analysis of those companies that appeared on both lists. A first contact was set up between the potential acquisition and Montell & Partners that later introduced those that were of particular interest to the client. Finally Montell & Partners acted as a strategic advisor to the client during the negotiations for acquisition.
Due diligence
Montell & Partners conducted a due diligence for a company that had identified a potential acquisition. The client needed the due diligence to be conducted by a third party in order to get financing from the bank.
At the start of the project a market analysis was performed where key customers were interviewed in order to understand the market dynamics and the external environment of the company such as the identification of the most important macro trends. A financial model was created in order to estimate the future cash flow which was based on conducted market analysis in combination with expected cost development. From these conclusions a business plan was created and presented to the client. The client presented the business plan to the bank which approved the loans required for funding the investment.
Exit
Montell & Partners acted as financial advisor for a family owned company with a turnover of approximately 25 million Euros. The assignment included the divestment of the company as well as integrating it into the buyer's existing business.
The trade sale was initiated approximately a year before the company was made available on the market. The initial work consisted of preparing for the exit by updating the company strategy as well as documenting it. This was followed by the creation of a business plan for the company, including both a short and a long term perspective. The company was performing changes related to the organization to realize the strategy and to secure financial performance after the change of ownership.
Discussions were held with the owner in order to deal with emotional issues, how to find a buyer able to secure long term success for the company and expected price range. The search for potential buyers was then initiated and Montell & Partners participated in the negotiations resulting in a letter of intent. A critical part of the negotiations was to identify the synergy potential for the potential buyers. A data room was then established and Montell & Partners worked intensively with creating and providing information needed for the due diligence process. Approximately one year after the first initiative in the divestment process was taken; the final agreement could be signed.
Montell & Partners has continued to work together with the buying company in order to realize the identified synergies and to integrate the company into the existing business.