A large European B2C group entrusted us with the sale of one of its non-performing brands.
The search had to be conducted internationally, excluding the brand's home market. Out of 500 possible prospects, we contacted approximately 150 potential investors in 30 countries for whom the opportunity represented attractive synergies. The fact that we had conducted a wide search including economically and culturally diverse countries generated significant process management issues (non-respect of deadlines by potential acquirers, standard process not adapted to specific cultures, etc.).
Our bet that strategic fit and synergies would eventually be the key success factor proved to be correct. We achieved the transaction with Asian acquirers at a price that exceeded our clients' expectations.
When we started the sale process of this high tech company, we had agreed with our client that we should target several specific industries in order to find trade buyers.
After two months, it became clear that this option would not allow us to obtain more than 80% of the targeted price. We diagnosed the flaw in initial thinking, identified alternative strategies and obtained our client's approval for a radical change in approach.
When we finally closed the transaction with a group that had many synergies with the company, the price was 125% of our client's target price.
Our client had to expand into a new country in order to accompany its largest client there. Time was of the essence and only external growth could be envisaged. We identified 10 prospects and spent considerable time working on our narrative and on our arguments before making contact with them.
In our discussions, we always focussed on the interests of the prospects and of their stakeholders. The quality of our exchanges resulted in as many as 4 prospects willing to discuss selling to our client. We ultimately acquired the best player - albeit not the largest - and secured a considerable competitive advantage for our client. In addition, we had laid the foundations of a partnership with one of the other prospects.
In a matter of several months, our client went from no presence in that country to being the leading player in the market.
An investment fund had overstretched one of its leveraged buy-outs. When the underlying company was hit by soft market conditions, its profitability dropped and it was no longer in a position to meet senior debt repayment obligations. When we started our mission, the banks were about to force the company into liquidation.
Our first task was to convince creditors that we had a credible plan. This was done in a few weeks - but the complete financial restructuring of the company took two years: capital infusion, introduction of mezzanine funding, renegotiation of senior debt and renewal of 50% of the banking pool, negotiation of factoring contract, implementation of asset-based funding (inventory) and, eventually, real estate lease-back.
This was our longest and most difficult refinancing project but ensured the survival of the company, the protection of the fund’s investment and the safeguarding of all jobs at the company.
Our client wanted to add new activities to its range of services but did not have the financial ability to acquire the prospect that they had identified. We designed a joint venture structure that enabled our client and the prospect to leverage their respective strengths.
The initial transaction was a balanced deal. Governance rules were precisely defined. Exit conditions were clear. The partnership worked well and is still in place today.
During the Christmas holiday period, an attractive acquisition deal was submitted to a large international group. We conducted top-level review and financial evaluation in less than three days.
The transaction was completed within a week.