Company acquisitions
When considering the partial or complete acquisition of a company, it’s important to bear in mind that taking over the operations or shares of a company is an extraordinary process with far-reaching consequences. The consultants at Baker Tilly Corporate Finance can provide you with advice and assistance every step of the way, from drawing up the acquisition profile and finding suitable target companies, approaching the markets at home and abroad, analysing the company’s operations and handling the negotiations, to drafting the legal documents.
Management buyouts (MBO)
If you’re the manager or director of a company, and you’d like to acquire shares, you can do so internally at the company where you work. Alternatively, we can draw up a profile together with you and then look for a company that suits you. This is an intensive process in which our expert knowledge of the SME comes in handy. Our consultants can give you personalised assistance and act as intermediaries by advising you on the transfer, formulating the transaction and helping you to set the appropriate terms for the financing or vendor loan.
Company acquisitions in three phases
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Perhaps you don’t yet have a particular candidate in mind for the business acquisition. Where to start? We will help you to draw up an acquisition profile and discuss with you the criteria for the type of company you’re looking to take over. This includes the type of product or service, where the company is based and the spread of revenues, its size, matters relating to succession, or the potential benefits of an acquisition or collaboration. The starting point for all of this is the resources that you have at your disposal for a takeover of this kind.
Maybe you already have an organisation in mind for this company acquisition. Either way, we can use our market expertise, international network and databases to expand the list of target companies based on the acquisition profile. This will enable us to draw up a good short list together. We will discuss the route you should take and we can approach organisations anonymously on your behalf. We can also hold preliminary talks with them, together with you if desired.
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Once you have an idea of the company or companies you would like to target, the next step is to make an offer and negotiate the purchase price and other terms and conditions. We can conduct a valuation of the company for you, which will be the basis for the negotiations and for arranging possible financing later. The negotiations are different for every process, and the hypothetical value often differs from the final purchase price. The negotiating position you want to take, a strategic premium you’re prepared to pay, or your personal interests are crucial aspects in transactions carried out in the SME sector. We’ll take these aspects into consideration along with the analytical approach and the mathematical models. Our team is multidisciplinary and has expertise in various sectors, along with a practical mindset.
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The final phase of a company acquisition involves drafting the legal contracts, using a letter of intent as a starting point. After that, you are given the opportunity to carry out a due diligence investigation (or have it done for you). Based on the conclusions of the due diligence investigation, renegotiations are held to discuss the conditions for the guarantee and other terms, as well as the final take-over price. Once these aspects are settled, the official documents are signed at the civil-law notary.
2022 transaction overview
In 2022, we advised clients on 153 assignments, ranging from acquisitions and due diligence investigations to valuations and financing options. The total value of the acquisitions came to €233 million, and the average transaction value was €6 million. Our clients operate in a wide range of industries, which we’ve listed below. You can read about these clients in the references, or get in touch with us so that we can discuss what we can do for you.
