Two men talk about selling their German company.
 

Purchase Mandate

We help you to find a suitable target company

Mergers and acquisitions consulting of businesses in Germany.

Take over of a Purchase Mandate

From the buyer's perspective, there are numerous motives for initiating an M&A process. In general, M&A activities are often used in the context of growth strategies. Mergers and acquisitions are used to accelerate the company's development considerably through external acquisitions instead of lengthy organic growth. The buying company can thereby increase its market share and increase its own market power. In this way, the market position can often be secured and competitive pressure reduced. Furthermore, mergers and acquisitions activities can help to open up new markets and serve to expand companies' own geographical presence. For example, it would be conceivable that a company rapidly expand its own sales and service network through the acquisition of several small businesses. A diversification strategy, through additional business areas in connection with a broad product portfolio, can also lead to a targeted risk spreading. Furthermore, tax aspects play not an insignificant role in many cases.

In practice, access to innovative technologies and the associated technical know-how is often a key motive for M&A activities. For the buying company, taking on such resources can be an enormous advantage over long-term internal development. Another important driver for mergers and acquisitions activities is the realization of synergy effects. Cost synergies are often achieved through economies of scale and economies of scope. However, the costs of realizing the synergy potential must be carefully assessed before the mergers and acquisitions process is initiated. At this point, it is easy to misjudge the target company. Difficulties arise during the evaluation with regard to technical equipment and the used production processes. The focus is often on the forward compatibility of the technologies used and the assessment of possible investment backlogs. These factors can lead to a misjudgment of the future potential of the target company. These facts inevitably result in an incorrect assessment of the company's value. We are at your side with our experience and will help you with these problems. Another common problem is the confrontation of two, mostly very different, corporate cultures. The corporate cultures of the buying company and the target company differ often greatly if both companies vary considerably in size. In many cases is the corporate identity of small and medium-sized companies is characterized by flat hierarchies, unbureaucratic cooperation, quick decisions, informal communication, and the variety of tasks of the employees. If the acquiring company is a large company, it can be assumed that its corporate culture will differ significantly from this. In order to be able to control a large company appropriately, its organization is usually much more structured and formalized. Decisions have to go through several levels and the tasks of the employees are usually more specific and much more emphasis is placed on documentation of processes. Here we can act as a buffer between the two parties.

 

Our service includes the following:

Phase 1: preparation

Mandate contract
Preliminary discussion and creation of a schedule
Strategy analysis
Elaboration of the acquisition criteria
Screening of possible target companies
Strategic Fit assessment
Candidate selection
Documentation

Phase 2: Addressing the market
Addressing potential target companies
Preliminary examinations
Selection process
Support in preparing an inductive offer (Letter of Intent)
Documentation

Phase 3: Examination
Communication with the target company
Coordination of the due diligence
Assessment of future business models / business plans
Negotiations with the target company, advice

Phase 4: Completion
Final contract negotiations, consulting
Support in the creation of a binding offer
Assistance financing matters of the M&A project (optionally)
Support in drawing up a purchase agreement
Assistance with signing and closing
Support in creating an integration plan (optionally)

Every mergers and acquisitions process is unique. The process and scope of the M&A transaction, therefore depends on individual case and must be individually adapted to the circumstances. Hence, the above listed services are only examples. We will be happy to make you a tailor-made offer. Only the agreements made in the respective mandate agreement apply. Depending on the scope of the respective mergers and acquisitions project, additional consultants or experts will may be required. Their services are not part of our offer. You have to order these experts separately and pay for them as well.