A successful deal closure be it M&A, fund raise or joint ventures, is an intricate process over several weeks and months. Altus has the knowledge and experience to support its clients all throughout and also works on any of the individual areas if so required.
Altus has closed deals in a variety of jurisdictions such as South Africa, USA, France, UK, Saudi Arabia, Oman and India in diverse industries including industrials, services and technology.
Typically a transaction process entails the following
- Company Analysis: Analysing the financials, profitability drivers, company operations and carrying out ratio analysis
- Industry research: Carrying out in depth industry research, understand global trends and possible impact on the transaction, along with a detailed competitor benchmarking exercise
- Market Mapping: Creating a comprehensive list of most suitable target companies after considering various parameters e.g. deal size, financials, transaction trends etc.
- Business plan& financial modelling: Creation of customized business plan (future income statements, balance sheet, cash flows and ratio analysis), future business strategy, capital requirements. We also assist in review and improvisation of existing models.
- Speaking to the right people: Talking to the most relevant people in the organization to get a quick feedback on interest levels
- Roadshows:Arranging multiple interactions and meetings with interested parties
- Lead all discussions: Actively lead all discussions and create the right environment for exchange of information and ideas
Structuring and Negotiations:
- Valuations:Transaction valuation as per globally accepted methodologies (discounted cash flow, comparable companies multiples, comparable transactions multiples, net asset value, replacement costs etc.)
- Transactions structures: Coming up with multiple transaction structures and arriving at the most suitable structure after due consultations with all involved
- Term sheet/ LOI:Drafting term sheet / letter of intent which captures all the contours of the transaction and commercial discussions
- Due diligence: Managing data room activities
- Documentation: Shareholder’s agreements, share purchase agreements, employment/supplier/customer etc contracts. This activity is led by lawyers experienced in transactions and Altus works in the capacity of a facilitator
- Co-ordination and project Management: Coordinating and liaising with various advisors such as financial, legal, environmental, technical, HR etc to ensure timely responses and meeting of transaction deadlines
- Conditions precedent and subsequent: Support the client for accomplishing various conditions set out by the counter-party