Buy-side M&A Advisory

Aquila Capital Group has a significant track record of participating as a buy-side M&A advisor in transactions of various complexity. During the preparatory stage of the acquisition process, the key objective of the advisor is to provide impartial advice on the strategic need of asset acquisition, fair value of the business and the most appropriate acquisition structure that would allow the client to either avoid or mitigate the risks.

Decision to acquire business

Organic and inorganic (via acquisitions) growth strategies are two possible ways for a company to expand, and both can complement each other. Growth via acquisitions, however, is set to provide a number of advantages, such as more efficient development in a fast-growing industry, acquisition of enterprises at a discount to replacement value, or company’s product mix extension. Anyway, a comprehensive preliminary study is needed in order to determine the synergies attributable to the buyer and risks involved in acquiring a new business.

Acquisition process

Having selected a list of target companies, as well as a set of appropriate valuation metrics, structuring of business transaction becomes a priority and has to be performed in such a way that the buyer is guaranteed exclusivity for a period of time that is sufficient to carry out a comprehensive assessment of the target company. In addition, the buyer is ensured to have received the maximum amount of guarantees and assurances related to the deal’s legal documentation compliance risks that are inevitable when acquiring business. Consequently, further comprehensive analysis is required in order to determine acquisition synergies attributable to the buyer, as well as risks associated with the realization of the synergies.