Mergers and acquisitions can accelerate a business’s growth strategy, transform its operations and increase its market share. But M&A comes with its risks and complexities that, when not mitigated, can derail a business strategy. Combining two companies involves more than a conversation and a handshake – valuations, balance sheets, cash flows, culture and profitability all need to be analysed and managed.
Our advice covers the following:
- Private shareholders on preparing for and maximising value from the sale of their businesses
- Management teams on negotiating terms and raising private equity and debt finance to support a management buy-out or buy-in
- Corporate and private shareholders on raising private equity and debt finance for growth, cash-out recapitalisation
- A plc board (Official List and AIM) about acquisitions and disposals, bid support or defence, and the public to private
Successful and sustainable M&A
At Parker Russell, we work with companies of all sizes across a broad range of
sectors, from owner-managed businesses to international companies and private equity funds. With our global perspective and team-based approach, we provide support and guidance across the following:
- Negotiations
- Acquisition
- Mergers
- Disposals
- Fundraising
- Valuations
As advisers, we actively create, negotiate, structure, and manage transactions, focusing on achieving a successful outcome.
Due diligence at every stage, the advice we provide to you is objective, independent, and based on our extensive experience in M&A. Every deal comes with value drivers and risks, so it is essential to carry out business-wide due diligence alongside considering the effect of market dynamics. Parker Russell understands the complexities of deals and provides the support you need to transform your business confidently. Undoubtedly, the success of acquisition by an acquirer, be it a corporate or financial investor, can be significantly influenced by the extent and quality of the due diligence undertaken. Financial due diligence is a crucial aspect of the overall investigation into the target. Our finance team comprises specialists who are deeply committed and experienced in providing the following:
- Due diligence for investors, banks and private equity houses
- Due diligence for corporate acquirers, in which case we report to the acquirer and, where appropriate, their funders
- Vendor due diligence – this is commissioned by a vendor but remains a
full independent review upon which a purchaser can ultimately place legal reliance. It identifies potential issues and reduces the probability of these being used by a purchaser to reduce the price. This is because they can be presented in a managed way by the vendor rather than being identified by the purchaser and used as a negotiating tool against the vendor
The specifics of the deal always determine the scope of financial due diligence. However, the process typically includes the following:
- An in-depth analysis of underlying historical performance, cash flows, assets and liabilities
- A critique of management’s forecasts, including the working capital
requirements of the business - A review of the underlying financial systems and controls
- Analysis of the taxation position of the business
Our reports will also include the following:
- A summary of the critical issues that our work has identified
- Our views on the associated risk and implications for the deal, including
integration and other post-deal issues where appropriate
If you want to grow or transition your company through Parker Russell, contact us, and a team member will be in touch to discuss this further.
Explore our services:
Merger & Acquisition (M&A)
– Financial and Tax Due Diligence
– Merger & Acquisition Services
– Business Restructuring Services
Valuation
– Corporate Valuation
– Equitation Advisory
Other Advisory Services
– Risk Management
– Dispute consulting and forensic services.
