To sell a Company is an important decision, for this reason we help you understand how to deal with the buyer during a M&A process to close it successfully. Our goal is to sell your business at the best price with maximum value for your shareholders, employees, customers and suppliers.
We maximize the company value for your clients through an insistent marketing to potential buyers from all over the world. We create strong competition among potential buyers, which allow us to increase the company’s value.
We value company by its development track, but specially by its positioning and future. Although sometimes it is difficult to see, every company has a promising future, you just have to find the best way to achieve it. Our search of potential buyers is mainly focus on international markets, since these usually make a better valuation of the national companies because of the added value in a foreign market.
We are proactive. A proactive and personalized focus is essential for selling a company successfully. The good document and call presentation in front of each potential buyer to present the M&A opportunity professionally and skillfully is a strategy much more effective than any other type of communication. It is the same process that you apply to your own products or services, with all follow-up and necessary meetings to be able to turn it into success.
We create competition. Your company’s value will be maximized if you have several potential buyers competing to buy it. The competition not only improves the speed and terms of purchase and sale, but also avoids deadlocks in the negotiations, and ultimately it has a decisive impact on the sale or acquisition price.
Follow up and continuous support. In order to complete successfully the operations, we believe it is essential that our team is in charge of the entire process. It is important that the company continues with its activities as usual and the owner only gets involved in the key negotiations
We are aware that the M&A process are delicate both for the image of the company offering to current clients and suppliers, as well as for the negative effects on the internal organization. Our will is to execute the projects in the most confidential way.
We carry out an objective assessment of your company using various methods and taking into account market and sector trends. Buyers are generally looking for companies with a promising future. The present and the past are important, although both strategic and financial investors invest in companies with growth options so we support the realization of financial projections.
Identifying potential candidates is one of the most intense phases. We approach potential buyers directly, even those who are not initially looking to buy. We have an international and multisectorial network, with both sales and acquisitions figures that allows us to identify various stakeholders in the required sector. We also have close relationships with numerous investment banks and private equity firms.
We guarantee the confidentiality and discretion of the projects. Direct contact by the seller can lead to information leaks and lack of discretion. From the first contact with the market our methodology focuses on a safe and efficient management of all the information which guarantees that the process is developed successfully and responsibly.
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THE ROLE OF CULTURE IN INTERNATIONAL M&A
Culture, by itself, cannot be seen as a reason for international M&A deals failing to close, or giving the results expected by the parties after the integration. What makes culture a stumbling block in many M&A deals are the differences that arise during the integration.
The term “culture” is not strictly confined to the set of characteristics or norms that differentiate one country or nationality to another (although national culture can also get in the way of M&A, as will be discussed later). When we say culture in the context of international M&A, it specifically means the cultural gap in the corporate or organizational cultures of the merging companies. Organizational culture refers to that set of values, norms and assumptions that govern how the people within an organization act, interact, and work on a daily basis.
M&A denotes a partnership, or a relationship that both will benefit from. In order for a solid relationship to establish, it is important to know who your partner is. Looking at their culture is one way to go about it.
In order to understand the importance of culture awareness when it comes to international M&A, let us look into its role, or how it shapes mergers and acquisitions.
CONTRIBUTING FACTORS TO CULTURAL INTEGRATION
Like it or not, culture has a great impact on business. It also goes without saying that, in M&A, cultural integration takes a lot of work. It’s actually quite a sensitive area that people engaged in M&A must tread with caution. Here are some factors that would make cultural integration smoother, paving the way for international M&A deals.
When undergoing global or international M&A, there are possible two ways to prevent cultural differences from destroying a potentially successful merger or acquisition.
In the process of evaluating a potential M&A, it is highly recommended that the companies thoroughly assess the culture of their target company or acquisition. More specifically, they should evaluate whether the culture of the target acquisition is compatible with theirs. Not only will this smoothen the integration but increase the chances of the merger or acquisition becoming successful and profitable in the long run.
Whatever decision was made by the merging companies, it is important to choose only one culture, and commit to it. The parties should sit down and have a good talk about it, reveal the gaps that they are faced with and reconcile if there is a need to do so, and put the chosen culture into practice. Managing the culture actively is the next phase, and this is left in the hands of the managers and executives of the companies.
Culture clashes are already a given in any international or cross-border M&A. They could make or break the entire M&A process. Thus, it is important to pay as much attention to culture as you do to other aspects of M&A.
Last year, Chinese M&A market basically maintain the same level as 2017 with total transaction amount of 678 billion US dollars, according to the last report of PwC China.
The first half of 2018, China’s M&A market was quite active, mainly driven by megadeals, but the activities fell in the second half year.
Outbound M&A market
Suffered by the Sino-U.S. trade war and heightened CFIUS (The Committee on Foreign Investment in the United States) scrutiny, China’s outbound M&A volume in 2018 had a decline of 23% according to the 2019 Global M&A Outlook from JP Morgan. Despite this decrease, 2018 China outbound M&A volume was still roughly one-third higher than the levels before the 2016 peak in terms of total deal values.
In spite of the commercial tensions between the US and China, as well as some divestments from European or North American companies, China continues to consolidate the geographic and sectorial diversification policy for overseas investment.
Moderation in China’s economic growth continues to drive the need to identify attractive growth opportunities aboard. Reasonably abundant capital availability and financing alternatives still enable Chinese acquirer to have strong purchasing power. Many large-scale outbound transactions happened in 2018, including ANTA Sports’ proposed $6.4 billion acquisition of Amer Sports.
Even with capital control and measures to curb “irrational” outbound investments, the Chinese government continues to support strategic outbound investments. Enterprise Outbound Investment Regulations (“Order No.11”) enacted by NDRC (National Development and R took effect in March 2018, simplifying and formalizing administrative procedures for outbound investments, potentially shortening review cycle time.
Inbound M&A market
On the other hand, China inbound M&A had a year-over-year increase of 2% in 2018. China has been demonstrating its continued willingness to gradually open its market to foreign investors, as evidenced by the release in June 2018 of a new Negative List and associated measures to remove restrictions on foreign investors.
Chinese M&A in Spain
Spain was the sixth preferred European country for the Chinese investors in 2018 according to the report of Baker McKenzie. The investments in Spain have reached to 1,179 million dollars, which means an increase of 162% comparing to 2017.
Last year, large M&A deals happened in Spain, China also contributed one of them. The acquisition of 53.5% shares of Imagina Media by Orient Hontai Capital was the fifth large investment from China in Europe.
According to Baker McKenzie, the Chinese investor’s appetite has increased notably in Spain, Sweden, Canada, Germany and France in relevant sectors with high added value.
Trends for China M&A in 2019
On the background of the stability of yuan and the irreversible trend of cross-border cooperation, it expects several possible trends for China outbound M&A in 2019: