Accuracy

CLIENT SERVICE

CASE STUDIES

Assistance to a disposal process

Situation

  • Our client is a large listed group which contemplates selling a small loss-making subsidiary partly owned by the management
  • The subsidiary is developing a new and promising technology. The technology has not yet started generating revenues
  • The management of the company has most of the technical know-how
  • The group wants a quick disposal process (having decided not to fund any longer the losses of the subsidiary)
  • No bank or M&A boutique is interested in assisting the group in such transaction

Our role

  • Accuracy is appointed to monitor the selling process
  • We carry out a detailed analysis of the strengths and weaknesses of the company (management, market addressed, financials,…) and prepare different divesting scenarios
  • We prepare the selling information (teaser, management presentation, specific analysis on the identified pitfalls…)
  • Our choice is to give priority to a simple, crystal-clear and brief process (open-books data room)
  • We organize the process
    • Contacts with potential acquirers
    • Follow-up of the process: NDA, teasers, Letters Of Intent, management presentation, non binding offers, binding offers
  • We assist the management in the discussions with the potential acquirers on a day-to-day basis
  • We assist our client in the negotiation of the terms and conditions of the SPA (earn-out, treatment of the convertible bonds, repayment of some inter-company transactions, conditions and limits of the SLA…)

Outcome

  • The transaction is closed in 3 months
  • The objective of the Group to avoid any significant accounting loss is reached

Value added for our client

  • Our pragmatic approach to propose a customized process that fits with the specificities of the transaction (small and loss-making business, sole value in the technology, business model not yet proven)
  • Our ability to put in place a senior team close to the client and available to lead the discussions with the potential acquirers
  • Our commitment to this, despite its small size, important deal for our client
  • Our fee structure customized to the specificities of the transaction