Over the last 10 years global M&A activity increased by 150%, with the average transaction value more than doubling. The Russian economy is moving even more quickly: M&A transactions more than tripled in the same period, while transaction amounts increased by a factor of more than nine.
Financial crisis does not halt the process of consolidation. In fact, it may even stimulate changes to market sectors and encourage new players to enter the game.
M&A transactions are important, but their consequences for both parties (and the newly formed entity) are no less critical.
BEFL’s leading team of M&A specialists can help with areas including:
- providing objective financial and legal information on businesses to be acquired, including business processes and risks
- planning a transaction so that each party’s interests are taken into account, and each can achieve their short-term and long-term objectives
- ensuring maximum efficiency from the transaction for the Client.
We can act as consultants throughout the M&A lifecycle: from the origination and planning of a transaction to completion and integration of the businesses.
For vendors (sellers), we can offer services including:
- forming the preliminary position with regard to selling or future partnership
- choosing potential purchasers or partners
- preliminary evaluation
- analyzing the company’s industry or sector, its position within it, and the ways of its strategic development
- researching details of operational activity and generating insight into competitive advantage(s)
- forming a strategy for selling or establishing a new partnership
- providing recommendations on reducing risks that could be significant to potential purchasers or partners
- drafting an information memorandum.
For purchasers, we can offer services including:
- researching and identifying companies that might be interested in selling (in whole or in part)
- gauging the merits of purchasing a particular business, based on strategic ‘fit’ and the risks involved in the transaction
- analyzing and estimating the synergistic outcome of the transaction
- valuing the target business; analyzing the reasoning behind the vendor’s own valuation
- preparing and executing complex due diligence on the business to be acquired
- researching and drafting a proposal for reducing risks.
Other services benefiting both vendors and purchasers include:
- managing the entire process of acquiring or divesting a business (or any specific stage of the process), including building a team and hiring consultants as required
- drafting the preliminary agreement
- structuring the transaction, taking tax issues into account
- drafting final agreements and contracts
- monitoring the activities of the parties to the transaction
- help with negotiation, signing agreements, contracts and buy-in.
Since 2000 we have supported over 250 M&A transactions, involving a total transacted amount of over $1.5 bn. Over the past 5 years we helped manage over 100 transactions in the agricultural sector alone, involving a total land area of 550,000 ha. We also specialize in sectors such as food production, engineering, mining and transport. In geographical terms, we offer extensive experience of M&A transactions in the CIS territories (Ukraine, Belarus, Kazakhstan, Georgia etc).
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