Get on the fast track
to growth
Company Acquisitions | M&A Advisory
Shaken,
not stirred
RIGHT FIT
The mission of our M&A Advisory is not to introduce you to all the targets on the market; rather, just those that thoroughly meet your strategic goals.
In order to determine the most suitable target, the first step consists in getting to know you better. It is important to understand your goals and the criteria to be met by the companies you seek.
Once we know everything about you, we will look for the best investment for your company based on the acquisition criteria we have approved jointly.
From these targets, we will help you to choose the best, no matter how slight the distinction from the rest, because the finer details are what matter to you, and indeed to us. The finer details are our forte.
Improvisation
is for jazz,
not for you
LOCAL MARKET INTELLIGENCE
We know
what target
matches your criteria.
We love jazz! Ornette Coleman, Thelonious Monk, John Coltrane and Cecil Taylor are frequently heard in our office. However, our way of working has little to do with the free jazz from the 1950s and the 1960s and rather more to do with the Vienna Philharmonic Orchestra.
It doesn’t matter whether you are targeting the Asian, European or Latin American market, or indeed your own. We call it local market intelligence, i.e., leaving nothing to improvisation. Our methodology is designed to allow you to benefit from pertinent insights into the macro- and microeconomic environment you wish to target, thereby making it possible to sketch out the most effective, focussed strategy possible.
We know what this target is most sensitive to, and what is important to it, just as we know what seller conditions and formulae are most effective in order to shape agreements within the local legal, employment or tax-related environment. We leave no stone unturned and endeavour to ensure everything fits together.
We are
on the same wavelength
as you
CULTURAL BRIDGE
We speak your language (and that of your target). And no, we are not merely referring to idiomatic expressions, we mean much more…
We can help you to overcome this cultural barrier between your country and your target’s country; or between a multinational company and a family-run business. As a Global Banking Boutique, we know how business is done in Spain (and in the world at large as well).
We overcome borders and meld cultures.
We can help you connect with your targets no matter how far apart you are.
You’ll have that
extra
something
OPENING DOORS
Interesting companies have many suitors out there. But don’t worry, we know how best to introduce you in society.
After studying your target in depth, we will prepare the groundwork carefully to enable you to engage with your target from the very first meeting. We will highlight your strengths and work together on a message to include everything the seller expects to hear.
Suitable words and deeds can open any door.
Even people who do not wish to engage may end up opening their doors to you.
You know
what you want,
we too
BESPOKE ADVISORY
We are proud knowing
that our clients
recommend us,
We are aware that tailor-made suits fit best. No two customers are the same; and you know what fits you best; therefore, we are on hand to make a difference with a hand-crafted approach and we will be ready to advise you.
For us, success is not gauged by the number of deals we complete each year, but rather by how good the deal is for you in terms of the procedure and the outcome.
Even those whose deals have not yet been finalised for reasons beyond our control.
Any questions about M&A advisory?
If there is anything you need to know about M&A advisory, perhaps the following sections will answer your questions:
What is a M&A Advisory Firm?
A M&A Advisory Firm, like ArsCorporate, is a consultancy firm that provides strategic and financial advice to companies involved in mergers and acquisitions transactions. Therefore, we play a crucial role in facilitating the buying, selling, merging or restructuring of businesses, from the strategic analysis and assistance in decision-making, to structuring the deal, to find the right counterparts or targets, and to forge the agreement that will culminate with the closing of a deal.
The primary objective of a M&A advisory firm like ArsCorporate is to assist clients in achieving their strategic goals by evaluating and executing various types of corporate transactions. We act as interface between buyers and sellers, guiding them through the complex M&A process or deal.
Our main objective is to assist companies in maximizing the value of their business, which involves preparing it for sale, identifying potential buyers, conducting financial analysis and negotiating the terms of the transaction.
What is M&A Consulting?
M&A consulting involves the provision of professional services by M&A advisory firms to support companies in navigating and executing their mergers and acquisitions transactions. At ArsCorporate, we like to work closely with our clients to understand their specific goals and meet their expectations and objectives.
As a top-notch M&A advisory firm, we leverage our expertise at different stages of the M&A process, providing valuable insights and assistance in areas like Strategy Development, Target Identification and Evaluation, Financial Analysis, Deal Execution and M&A Integration Process.
What are the 2 main stages of an M&A process?
First of all, the pre-deal stage involves the preliminary planning and preparation for the M&A transaction. During this phase, we must highlight some key actives as:
- Conducting market research, evaluating industry trends and considering the compatibility and synergies between the acquirer and target.
- Due diligence on the target company to assess its financial, legal, operational, and commercial aspects to evaluate the risks, opportunities and valuation of the target.
- Valuation of the company based on factors such as financial performance, market conditions, comparable transactions and synergies, plus the consideration of deal terms.
Secondly, the deal execution stage of a M&A advisory involves the actual negotiation, agreement and completion of the M&A process, which includes finalizing the purchase price, deal structure, representations and warranties, indemnification provisions and other contractual terms that will also get all the necessary approvals and conditions to close the deal.
After these two phases or stages, there is another one, the integration of the target company in the operations of the acquirer, a complex process provided by specialized consultancy firms and some M&A advisory firms to their clients. In this final phase, the focus is to shift to integrating the business processes, systems, cultures and personnel of the acquiring and target companies.
How do you plan a M&A strategy?
Planning an M&A strategy involves a systematic approach to determine the goals, criteria, and considerations for potential mergers and acquisitions transactions. Some of the main key steps that we consider in our M&A advisory practice are as follows:
- Defining clearly your company’s strategic objectives and reasons for pursuing the target company.
- Conducting thorough market research to identify potential M&A opportunities.
- Determining the criteria for evaluating potential targets.
- Evaluating your company’s internal capabilities and resources.
- Identifying and assessing potential risks associated with the M&A process.
- Assessing your organization’s integration capabilities and capacity to integrate an acquired company.
What is a M&A strategy framework?
A M&A strategy framework is a structured approach that helps guide organizations in developing and implementing their mergers and acquisitions strategies. It provides a systematic structure to assess potential opportunities, define strategic objectives, evaluate risks and synergies and execute successful transactions.
As we have said before, some of the key actives that we focus on are defining some clear objectives, target screening and selection, due diligence assessment, valuation or pricing and integration.
A number of studies by renowned universities and world-class consulting firms have consistently shown that a programmatic M&A strategy creates significantly more value for shareholders and holding companies than a reactive or opportunistic M&A approach. The programmatic M&A strategy should be consistently applied to divestments and acquisitions to ensure success in both cases.
What are the M&A valuation methods?
There are several common valuation methods to determine the value of a target company, but the only one that collects correct data is Discounted Cash Flow (DCF), which estimates the present value of future cash flows generated by the target company. Also, cash flow projections are made based on expected future revenues, expenses and capital expenditures.
Some other M&A valuation methods that you may hear about are:
- Comparable Company Analysis (CCA) or Market Multiples
- Asset-Based Valuation
- Earnings-Based Valuation
- Industry-Specific Valuation Methods
But all of these collect wrong data that will not help you to know precisely the real value of the company you want to acquire or of your own business in case you want to sell it. We don’t recommend any other valuation method than the DCF. Market multiples should be restricted to be a tool for checking the correctness and feasibility of the DCF based results.
How long does the M&A integration process take?
The duration of the M&A integration process can vary significantly depending on various factors, including the complexity of the deal, the size of the companies involved, industry dynamics, regulatory requirements, cultural integration challenges and the pre-deal planning.
While it is difficult to provide an exact timeframe, this phase typically takes several months to a few years to complete. Every M&A process and strategy is different and has its own rhythm, so you cannot make a comparison between two completely different cases.