Valuation for Mergers and Acquisitions
AMA works with clients’ executives and corporate development officers to design a strategy that implements their goals for growth and diversification. As soon as this strategy has been agreed upon, we research the targeted industry to identify all of the prospects that will fit the acquisition criteria.
Because we are consultants, and not direct employees of our clients, we are able to contact those companies where for competitive or other reasons, they are unable to contact the targets themselves.
AMA does all the legwork of contacting, chasing and meeting with potential targets to save our clients the time and effort of pursuing companies that may not be suitable. While we are setting up that first meeting with companies, our clients are able to focus on the day-to-day operations of their business.
From our visit with target companies we will write a visit report, which usually provides all of the information necessary for our clients to decide if the target is worth pursuing. It is important to stress here that because AMA is not an employee of our client, and not a perceived competitor, we are able to open doors and gather information on a target that would often not be available to the corporate employee.
Other than information on the financial history and outlook, business activities, and other concrete facts, we also share our views on intangibles of the targets business, including the critical component of corporate culture.
Once our client has decided on one or more targets that they would like to pursue, we visit those targets together, usually seeing all of the targets chosen on a single trip. During that meeting, our client and the target exchange information on each other, discuss the potential transaction, and make a determination whether they would each like to go forward with a transaction.
This approach allows our client to move cautiously, visiting target companies, and exploring the attributes of a transaction before any commitment is made. There is far less risk with this methodology than in responding to an auction, where an offer is made before the company’s management, business and culture are really known. AMA also assists in evaluating the offer price for a target, as well as the optimal terms and structure.
The principal of AMA has a history of making companies available for sale. It starts with that initial visit, the most difficult and most important step. No one sells their business over the telephone; it must begin with a face-to-face discussion. The reason they will allow us to visit, or ultimately to enter negotiations is not because they are actively selling their company, but because we present the sale of their business to our clients as an opportunity. That by joining with our client they will find a strong partner that can help expand their business internationally in a manner that would usually be beyond their resources, and the possibility of expanding their products and/or service offerings with those of our client. We make a combination with our client so attractive that the target does not seek competitive offers.
In every project, we save our clients considerable time by performing all the search and legwork of identifying and initiating discussions with targets, pre-screening them, and eliminating non-suitable targets for reasons such as financial performance, market positioning or cultural dissimilarity.
Get In Touch
EMEA : +32 2 808 0510
AMEC : +1 516 58 44 222