Almost without exception, research indicates that the majority of mergers and acquisitions either fail outright or fail to create shareholder value. One defense against potential negative consequence of a merger is to work towards a clearly defined strategy. Our team will work together with the parties and the client to develop a clearer set of parameters that can be used to filter out inappropriate targets, thereby avoiding the many potential pitfalls of rapid expansion.
Virtually every merger or acquisition transaction will require innovative and tax effective structuring, and we are well placed to provide such structuring advice to maximize returns and future cash flows. We work closely with our firm’s tax professionals, and draw on our experience of deal structuring both locally and internationally to maximize upside potential and minimize risk.
We provide key introductions to potential investors or business partners as well as facilitating the identification of, and approaches to, potential targets for merger. This would also include acting for an undisclosed principal in approaching a target company on behalf of a client who wishes to remain anonymous and effectively dealing with the sales mandate and the requirements therein.
Overcoming the unique challenges of merger integration is a monumental undertaking that few management teams are able to accomplish successfully. Langa Attorneys has extensive experience in facilitating the unlocking of the merger’s combined value through capturing economies of scope and scale, transferring capabilities and skills and transforming operations.
Unlike investment banking firms, Langa Attorneys advisory services extend from the development of corporate strategy to its execution. Because successful acquisitions are the result of well conceived corporate strategy, we help clients plan as well as implement transactions. The extent of our involvement in the early planning stages of the acquisition process is dictated by our client’s needs.
To identify acquisition candidates, we will undertake a comprehensive search based on our client’s strategic operational and financial criteria. Potential candidates are evaluated to determine which should command the highest priority and the like hood that the owner will be receptive to selling. Once the target candidate has been identified, we make contact on a confidential basis to open a dialogue and confirm the seller’s interest.
We perform a thorough analysis of the target’s business, competitive position and future prospects. Whenever possible, we determine the value of the target to its current owner as well as to our client, based on our client’s strategy for managing the business and any synergistic benefits that might be realized. We employ EVA@ valuation methodology to differentiate current operations value and growth value, and analyze the process by which value will be created.
Based on our findings, we develop a pricing strategy and assist in structuring and negotiating terms and conditions. When required, we will arrange financing. We believe that successful acquisitions not only must satisfy our client’s strategic objectives but also must enhance the long term value of its stockholder’s investment. We are uncompromising in our commitment that our client overpays in its zeal to acquire. In fact, some of our most successful advisory roles have involved acquisitions that did not close. From the signing of a letter of intent through closing, se coordinate the activities of our client’s acquisition team and manage the due diligence effort necessary to substantiate the acquisition price.
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