• Acquisition of companies or shareholdings
The German middle market (the so-called "Mittelstand") or the French small
and medium-sized enterprises (the so-called "PME-PMI": Petites et
Moyennes Entreprises et Industries) provide many acquisition targets in
every geographic region and every industry category. We aim to help our
clients locate and acquire French and German targets, advising on the
best strategic and cultural "fit". Our unique and significant local
business expertise shortens the search time for acquisition candidates
and increases success rates in closing transactions. Numerous local
French and German contacts and extensive personal networks enable us to
respond to the needs of our clients. Native language fluency and
intimate knowledge of both cultures and customs provide added value to
our services in the course of a transaction.
There are many reasons to acquire, both personal and strategic. When we partner up
with our clients, we first establish the objectives of the transaction
whilst helping sharpen the acquisition justification. We create value
for our clients primarily in the French and German markets by way of
helping identify and approach suitable targets successfully, while
mitigating business risks.
At LENZ International, we tailor the Purchase process to your objectives
and we advise on the actions to be taken in anticipation of the
transaction. We help in planning the entire Purchase Process.
Prior to an engagement, we take care to informally discuss your concept of
the Purchase and we analyze the critical decisions that need to be made
prior to the transaction: its motives, the likely quality of the target
companies list, the chances of a successful transaction, the desired
speed of the transaction, how to maintain confidentiality, the degree
and planning of integration, the handling of cultural implications and
differences, the possible deal structures, the post-closing management
staffing. Then, within the framework of a signed mandate, we offer
expert advice and project management at each specific stage of the
process and we execute the Purchase.
LENZ International offers the following advisory services with a clearly structured method:
Phase 1 : Pre-acquisition analysis/planning
- Discussions about the motivations of the Acquirer with the Setting of his Strategic objectives
including a review of alternative courses of action,
- Outlining of an Acquisition Strategy including discussions about the potential deal risks
involved,
- Setting of the Selection Criteria for potential targets,
- Carrying out of Market Research on the market(s) of potential targets (status, structure, local
business and market conditions, trends, players, etc.),
- Market Screening and development of the Long list of preferred targets,
- Analysis of the strategic, cultural and financial "fit", confidential contacting and initiation of
discussions,
- Short listing of client-approved potential targets,
- Maintaining Confidentiality, ...
- Further exploratory discussions, narrowing the field, agreeing on a first-choice candidate,
- Preparation of a comprehensive Target Company Analysis including financial analysis
and modeling of a stand-alone Business Plan with assumptions on the target’s integration and
on the capturing of synergies,
- Preparation of a market-oriented Initial Valuation Report that applies appropriate valuation
methods in order to determine the worth of the business and an appropriate Purchase Price
Range,
- Advising on financing possibilities, Reviewing of the planned transaction under applicable
competition law,
- Outlining of a Purchase and Negotiating Strategy including discussions about possible
transaction structures,
- Setting of a most-likely Time Frame for the Transaction ...
Phase 2 : Transaction
- Assembly of an effective Deal team (to include advisors, lawyers, accountants and all other
experts),
- Coaching of the Buyer’s Management on the heeding of cross-cultural differences,
- Act as local project manager and assist client in its contacts with the target,
- Negotiation of a Term sheet (Heads of agreement) and Formulation of a Letter of Intent,
- Arranging Visits of the Target’s site(s) and of the Data room,
- Monitoring Due Diligence (financials, taxation, legal, environment, market, insurances)
- Holding of Q&A-sessions,
- Preparation of a Final Valuation Report that applies appropriate valuation methods,
- Identification of intercultural issues,
- Preparation of the Pre-closing Integration Plan,
- Intercultural mediation between Acquirer and Seller,
- Coordination with all foreign advisors (lawyers, accountants and experts),
- Preparation of documents necessary for client’s board approval,
- Coordination of the negotiations and Push to a conclusion of the Transaction,
- Coordination of the production of the transaction documentation (agreements, certificates,
etc.) and compliance checking of local special regulations, if any
- Setting of a Completion Procedure and Closing of the Transaction.
Phase 3 : Post closing Implementation/Integration
- Project management of the post closing Integration (« The 100-day plan »),
- Performance management of the acquisition for achievement of desired outcome (future
development of the acquired company as per the Buyer’s business plan),
- Assisting the client in bridging the corporate cultures,
- Follow-up on the Continuing Obligations of the Buyer.
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