Company acquisition
Are you considering creating synergies through a company acquisition?
Then we recommend that you take advantage of our i-capital expertise. We will help you set up a structured acquisition process, identify suitable target companies, and prepare and execute a transaction.
From the initial discussions and analysis of synergies to the preparation and execution of the evaluative due diligence phase and final negotiations, we are at your side with our experience and expertise to ensure that the process runs as smoothly as possible and achieves the best possible outcome.
Are you considering selling your medium-sized company?
Then we recommend that you seek comprehensive and in-depth advice from i-capital and work together to develop an appropriate sales strategy.
When it comes to sales processes, it is particularly important to keep control of the rules of the game in clear process flows so that the project can be realized within the intended time frame with the desired result.
This applies to the sale of the entire company as well as to a subsidiary, a division (“carve-out”), individual assets (“asset deal”) or shares in the company (“share deal”).
Together with you as the owner and your management, we carry out a structured, stringent, and highly competitive process to maximize the result. In doing so, we naturally take your desired specifications into account—for example, to ensure the dignified continuation of the company or to minimize liability after the transaction.
Are you planning to become self-employed?
Would you like to buy into a company as an external manager with relevant industry expertise and professional experience? Or would you like to acquire shares in the company yourself as an internal manager? Takeovers by internal managers (MBO) or external managers (MBI) can be interesting alternatives to traditional company sales, but they also require the relevant experience to ensure a smooth transition.
If you would like to know how the purchase of a company could be realized, we will develop individual financing solutions for you through external equity and debt capital providers that are tailored to your personal situation.
The associated procurement of growth capital is a challenging process and should be aligned with the strategic orientation of the company.
Growth capital is particularly needed in the following situations:
• Company acquisitions
(acquisitive company growth, acquisitions, investments)
• Establishment of a new location
• Internationalization
• Development of new products
Not every financing instrument (from subsidies to mezzanine financing) is equally suitable for every company. We help you find the best possible structure for this important growth step.
What are the risks and opportunities involved in a company that is up for sale?
From a holistic perspective, what determines its value in light of these considerations?
These questions arise particularly in the context of an upcoming corporate transaction. The i-capital team has effective methods and many years of experience to assist you as a buyer or seller of a company with these issues.
Due diligence (in German law, “im Verkehr erforderliche Sorgfalt” or “due care required in business transactions”) involves a systematic risk assessment of your company and an examination of its strengths and weaknesses.
The result is therefore particularly important for potential buyers of a company or their financiers, which is why due diligence (DD) is often commissioned by the potential buyer. However, DD can also be commissioned by the seller of a company in order to accelerate the sale with the resulting in-depth transparency – this is referred to as vendor due diligence.
The i-capital team focuses on three different areas within the scope of due diligence:
• Strategic (vendor) due diligence – the strategic analysis and evaluation of companies for investors and financing partners
• Commercial (vendor) due diligence – the commercial analysis and evaluation of companies for investors and financing partners
• Financial (vendor) due diligence – the financial analysis and evaluation of companies for investors and financing partners.
There are no market-determined prices for companies. This applies in particular to small and medium-sized enterprises, but also to listed companies – because in some cases only minority shares are traded on the stock exchange.
This is why a company valuation is necessary, for example, when buying or selling a company, in the event of a merger, when taking out a loan, or even in the event of disputes under company law.
A high equity ratio in the company’s balance sheet is a good prerequisite for a high company value. However, it is not possible to derive the company value from this. At best, the equity balance sheet gives an impression of the company’s past performance and provides indications of a possible liquidation value.
The going concern value of a company, on the other hand, is derived from its ability to generate profits and liquidity surpluses in the future. This means that company valuation is highly forecast-oriented.
The profits expected in the future are therefore derived from a company’s business plan. Good past performance increases confidence in the planning. The income approach and discounted cash flow method are the most common methods used to assess the future profit potential of companies. Multiplier methods can be used as approximate calculations for an initial price estimate.
The i-capital team is at your side as an experienced partner in all aspects of company valuation.
Are you planning to buy or sell a company due to special circumstances?
As a company, trustee, or insolvency administrator, you will benefit from our advice on the successful execution of distressed M&A processes and other transactions in special situations.
These may be companies or parts of companies that do not meet the owners’ return expectations, or that are in acute crisis or already insolvent. Such a process must be conducted efficiently and quickly, taking into account all factors relevant to crisis and insolvency law.
Therefore
• we keep an eye on all stakeholders: shareholders, creditors, insolvency administrators, trade credit insurers, etc.
• with our sister divisions i-strategy and i-canvas, we offer comprehensive and valuable expertise on financing and insolvency law issues.
• we achieve measurable added value by contributing operational restructuring expertise to the company. This allows us to improve transaction security and restructuring prospects in the long term.
• we have many years of experience with dual track processes in order to develop alternative solutions for the company (e.g., refinancing) in addition to the classic M&A process.
• We offer a unique network of solution partners and investors.
Our approach is pragmatic and focused on results. You receive tailor-made solutions from a multidisciplinary team on both the buyer and seller sides.
