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Strategic review – As part of the preparation for acquisitions, Ernst & Young M&A Advisory assists you in developing or challenging your acquisition criteria, assessing whether an acquisition fits with your business strategy, and if so, which acquisition meets your objectives best.

Advising acquirers – Our objective is to optimize the conditions of the acquisition and to reduce the risks attached. We continue to be successful due to our structured approach:

• Understanding your strategic objectives, determining whether these can be best met through an acquisition, taking into account the strengths and weaknesses of the acquirer;
• Identifying potential targets based on a predetermined target profile through our global M&A Advisory network;
• Selecting the best targets using our financial, strategic and operational expertise;
• Exploring the willingness of the target’s shareholder(s) to sell their interest in the target;
• Determining the value span of the business to be acquired and identify potential synergies to be obtained by the acquirer through the acquisition;
• Determining a negotiation strategy aimed at reducing the sales price of the target and minimizing the risks of the transaction;
• Organizing the due diligence and support the buyer during the closing of the transaction, such as contract drafting including representations and warranties;
• Structuring fund raising and helping acquirers to partner with financial investors.
  
  
  
  
  

• Understanding the shareholder’s strategic objectives and identifying the strengths and weaknesses of the business to be divested, and the threats and opportunities of the environment it operates in;
• Identifying potential acquirers (“long list”);
• Selecting credible acquirers (“short list”) that are able to maximizing shareholder value through the contemplated transaction;
• Preparing an information memorandum;
• Determining the value span of the business, also considering synergies to be obtained by the potential acquirer;
• Analyzing and comparing the bids of the respective potentia l acquirers;
• Determining a negotiation strategy aimed at maximizing shareholder value and minimizing the risks of the transaction;
• Supporting the seller during the due diligence process of the acquirer and during the closing of the transaction, such as contract drafting including representations and warranties.
  
  
  

Management buy-out and Leveraged buy-out 

A leveraged buy-out is the process of taking over a company or business using borrowed funds. This mechanism is only possible if the target can adequately demonstrate its debt reimbursement capabilities.

A management buy-out is the process of taking over a company or business by members of its management. This process also requires fund raising as the managers involved usually will not be in a position to personally finance the transaction.

In both cases, Ernst & Young Transaction Advisory Services offers its expertise to find appropriate financing, such as equity raisings: private placements, public fund raisings, hybrid instruments and debt raisings: structured acquisition finance, real estate finance, bond issue, working capital and term loans.