Sales and divestitures of companies cause their particular problems.
It is important to identify a number of bidders to ensure negotiating power and choice. Price is not the only consideration: company culture and how existing management are handled is a key issue. Keeping the managers informed and motivated; ensuring that their long term interests are aligned with the company; possible integration with a purchaser’s management structure, these are all areas where the experience of our partners can be invaluable.
In a divestiture the interests of the owners of a company and the management are not always the same. If option or bonus schemes are an issue, their interests may even be opposed. Management will tend to emphasise relational issues with new owners and may want to limit the search or to control the process. Sometimes the management itself may be an alternative bidder to external buyers.
M&A Worldwide’s partners operate as professional advisers for owners of mid-sized companies as well as for the top management of large groups that want to divest subsidiaries. In these cases, our partners identify buyers and handle the different interests of the various parties. For instance, highlighting synergies and corporate results, putting together alternative deal models and incentives with the objective of ensuring the best deal possible to the seller.