ABI ANALYTICS
CORPORATE MERGERS & ACQUISITIONS
Leverage Our Expertise In Transaction & Business Evaluation For Domestic / Cross Border M&A, Joint-Venture & Corporate Restructurings
CORPORATE M&A ADVISORY: UNLEASH GROWTH & VALUE
Leveraging Our Multi-Disciplinary Professionals With Deep Expertise In Transaction & Business Evaluation For Identifying Growth & Value Creation Opportunities; End-To-End Execution Support For Domestic As-Well-As Cross Border M&A, JV And Corporate Restructuring
ABI’s CORPORATE M&A ADVISORY SERVICES
ABI’s Corporate M&A Advisory Services are focused on helping Small & Medium Enterprises (SMEs) and Family-Owned Businesses to effectively find, evaluate and execute growth and value creation opportunities across domestic and cross border markets. As an independent boutique corporate advisory firm, we are focused on providing completely objective advice on strategic growth options available to our clients. With a team that has multi-disciplinary business consultants and M&A professionals with deep expertise and experience in strategic growth consulting and execution across sectors, ABI is a “partner-of-choice” for SMEs and Family-Owned Businesses.
Our Corporate M&A Advisory Services are tailored to meet our client’s growth strategies – bolt-on acquisitions to access new markets, add products/services/assets, access technologies/intellectual property or to achieve better competitive positioning by combining resources of two firms. We also work with our clients on strategic review of their business portfolio and restructuring the same with divestments of underperforming assets or non-core business units.
Leveraging our flexible engagement models, our clients engages us as an extension of their internal strategy team – the engagement starts with a dedicated M&A Advisor exclusively working for the client and then other specialists and experts are engaged as needed through the deal cycle.
SELL-SIDE ADVISORY
ABI advises its clients – SMEs, Family Businesses and Private Equity firms – on divestments of non-core business units, assets and/or sales of entire business.
These sell side transactions could be domestic or cross-border. ABI always tailors its transaction strategies to meet the specific requirements of its clients and to achieve the optimal price.
ABI’s senior management works with the client’s management team to refine the strategic objectives and options and then leverages its expertise and strong network across the globe to achieve set objectives.
BUY-SIDE ADVISORY
ABI advises its clients – SMEs, Family Businesses and Private Equity firms – on acquisitions as strategic growth option and effective execution.
The process starts with a strategic review of the “As-Is Business” in the context of evolving macro & sector dynamics to assess the “Strategic-Gap In Business”. In collaboration with the company management, ABI then defines a clear acquisition strategy to achieve “To-Be Business” with sustainable growth. Our specialized research team then prepares a tailored target list based on a rigorous “Strategic-Fit” & Valuation analyses. We then work with the company management on transaction management, funding sources and negotiating terms.
ABI’s ROBUST FRAMEWORK FOR EVALUATING STRATEGIC GROWTH OPTIONS & EXECUTION
M&A PRE-DEAL EVALUATION
Defining M&A Strategic Rationale
Industry Landscape Analysis
Buyers Identification
Targets Identification
Strategic-Fit Analysis
Corporate Restructurings & Divestitures
M&A DEAL EXECUTION
Fitment & Synergy Analysis
M&A Transactions Structuring
IM & Road Show Presentation
Due Diligence
Coordination With Advisers (Lawyers etc.)
Valuation & Negotiations
M&A VALUATION
M&A Modelling
Synergy Valuation
Assets Valuation
Patent & IP Valuation
Purchase Price Allocation
Goodwill Impairment
BUSINESS RESTRUCTURING
Divestment
Management Buy-outs
Leverage Buy-outs
Join Ventures & Alliances
INTERNATIONAL EXPANSION
Market Opportunity Assessment
Deep-Dive Market Studies
Customer Needs Analysis
Go-To-Market Strategy
DEEP
EXPERIENCE…
50+ Corporate M&A assignments across diverse industry sectors and geographies where our senior management have participated across the deal cycle
Traditional Sectors: Real Estate I Infrastructure I Utilities | Manufacturing | Energy | Food & Consumer Products I Agribusiness | Banking & Financial Services I Insurance | Metals & Mining | Media & Entertainment | Healthcare | Telecommunication I Pharmaceuticals
New Age Sectors: Technology | Semiconductor | Software | Biotech | Alternate Energy I Software I Artificial Intelligence I E-Commerce & Internet-Enabled Businesses
Region: 15+ countries across Asia-Pacific, the Middle East, Africa, Indian Sub-Continent
Focus: SMEs I Family Businesses
PROFESSIONAL
EXPERTISE…
100+ years of combined M&A, Strategic Consulting & business valuation experience with deep expertise and knowledge of buy-and-sell side transactions
Team: 15 professionals with top 5-principals each having more than 10 years of M&A and business consulting experience
Qualification: MBA Finance I CFA I CPA
Experience: Investment Bank I Private Equity I Project Finance I Corporate Strategy I Business Consulting
STRUCTURED
FRAMEWORK…
Our focus on deep-dive analysis to align and execute inorganic growth opportunities as per the specific needs of the business and sector
1. Visualizing The Future Based On Macro & Industry Attractiveness & Associated Risks
2. Assessing “As-Is” Business & Strategies For Evaluating Potential Growth Curve
3. Defining “To-Be” Business For Future
4. Designing Strategies & Execution Plan To Achieve “To-Be” Business
5. Identifying Targets/Buyers With Rigorous Fitment & Synergy
6. Conducting Rigorous Due Diligence & Valuation To Arrive At The Right Consideration Price
7. Negotiations To Achieve The Desired Outcome
COMPLEMENTARY CAPABILITIES…
Our ability to leverage experienced professionals from various domain to quickly understand sector/geography specific nuances is an added advantage
Sector Experts: 30+ sector experts with 10+ years of average domain experience
Technology Experts: 10+ technology intellectual property experts to help understand nuances of technology and their commercialization potential
Market Research: Internal Knowledge Base of 100+ market research to quickly understand business drivers and sources of value creation / destruction
Database: Internal Database on “guideline public companies” across geographies and growth curve, with their operational and valuation multiples, that helps quickly understand factors impacting valuation
Advisers are assigned on corporate M&A based on the specific requirements of the deal. The engagement is executed through a well-defined and collaborative Engagement Governance Framework as presented below:
ABI brings other relevant experts – as needed – either from its own employee base or from its “experts’ network” spread across the globe.
TRANSACTION STEERING COMMITTEE
Participants:
Client’s Senior Management
ABI’s Senior Management
Role:
Oversees the entire transaction and provides necessary clarifications to the team
Reviews the strategic options and take a final decision on the selected strategy
Has the final say on negotiation terms and consideration price
ABI TRANSACTION DIRECTOR
Main point of contact for the transaction
Provides overall direction and guidance to the transaction team
Acts as the key negotiator with targets/buyers
Participates in review meetings with the Steering Committee
Brings other Consultants / Experts on the team, as and when required
STRATEGY
CONSULTANT
Defines the business growth areas and strategic initiatives in discussion with key executives of the client
Ensures rigorous evaluation of available strategic options and then suggest best course of action
Presents upside, deal execution scenarios and associated risks for each strategic option
VALUATION
EXPERT
Prepares in-depth valuation model incorporating all business drivers and sources of risks
Incorporates advance analytics and scenario/sensitivity to analyze business impact under different strategic options
Suggests right consideration price for the opportunity
CASE STUDY 1
ABI Advises An Industrial Company On Acquisition Strategies
The Client
An Indian SME in the manufacturing space was looking to evaluate its growth options and hired ABI to critically evaluate available options to support growth. ABI worked closely with the corporate strategy team of the client through the completion of strategic growth initiative.
Scope Of Work
The client needed in-depth analysis of strategic options available to it. The specific scope of the work included:
- “As-Is” business evaluation on standalone business growth potential
- Opportunity assessment and future growth scenarios
- Strategic-gap analysis to exploit emerging growth opportunities in the sector/markets
- Evaluating acquisitions as a bolt-on growth option
- Identifying, shortlisting and conducting strategic-fitment and potential synergies for any acquisition
- “To-Be” business valuation based on potential value of synergy from the combined operations
- Sensitivity of business valuation with changes in key business drivers and macro/industry scenarios
- Evaluating funding options for any proposed acquisition
ABI Solution
- ABI deployed a multi-disciplinary team comprising:
- A sector expert to guide the team on assessing the market attractiveness, competitive dynamics and sources of competitive advantages. The sector expert also guided the team on potential competitive landscape and resultant business growth scenarios for the client’s portfolio company
- Organically build the capability versus acquiring now
- The scenario where another competitor acquires the target company
- An expert on financial analysis & business valuation to create the financial model incorporating all relevant business drivers
- An expert on technology to guide the team on existing and evolving technologies in the domain and their commercialization potential.
- A transaction advisor to guide the client’s team on negotiations and/or negotiate on their behalf
- The work was carried out in Four Phases:
- PHASE 1: Strategic Growth Options Analysis
- Market Opportunity Assessment
- Competitive Landscape Analysis
- Strategic Gap Analysis – Products / Services / Technology / Markets
- PHASE 2: Defining The Acquisition Strategy
- Build Vs Acquire
- Risks Vs Rewards
- Potential Targets Shortlisting
- PHASE 3: Valuation & Transaction
- Initiating Talk With Targets
- Fitment & Synergy Analysis
- Due Diligence
- Financial Modelling
- PHASE 4: Concluding The Deal
- M&A Transactions Structuring
- Evaluating Funding Options
- Negotiations
- ABI team validated the historical financial statements and forecasted projections of the target company based on the company’s current growth, strategic plans and external business environment. ABI team also evaluated the target company’s sales forecasts and market share estimation based on the competitive dynamics, technological landscape and manufacturing capabilities
- ABI analysts created an in-depth valuation model incorporating sources of value creation and synergies. Valuation with scenario analysis was also based on rigorous benchmarking
- ABI team helped negotiate optimal consideration price based on prevalent market conditions and potential acquisition benefits
Engagement Benefits
- A comprehensive review of the strategic growth options helped the client realign its business plan for next five years
- Time-efficient strategic move as multiple teams were able to work on different aspects of the deals
- Continuous communication and discussion on interim deliverable meant that the entire deal team was aligned with the same objectives
- Financial model – with its value allocation analysis among stakeholders under different scenarios – worked as a key negotiation tool for the client’s team negotiating with the target company
- ABI also delivered M&A rationale report and presentation slides for the consideration of the board members of companies
- Focus on data-security and well-defined access structure on the “need-to-know” basis keeps the data and information security as the same level as is found in the internal team