Merger and acquisition (M&A) activity has increased dramatically over the past several years, fueled by widespread corporate restructuring. Recently enacted laws have make divestitures much easier. For example, laws now allow the re-organization of a division as a subsidiary on a tax-free basis. Smaller start-up ventures have begun to see M&A as a alternative to an IPO path. ANAHAT is active in the development of both sell side (divestiture) and buy side (acquisition) M&A transactions.
ANAHAT leverages its extensive high-level corporate contacts to approach companies under the premise of a strategic investment, because well-managed, healthy companies are seldom offered openly for sale, Extensive discussions uncover the motivations and concerns of the company’s owners, from lack of successors and expansion capital, to midtier management quality. In the case of divestiture. ANAHAT assists existing managers in exploring the option of a management buyout, often as a first step toward agreeing to be acquired.
M&A Phase I
- develop presentation materials
- analyze potential acquisition targets or acquirers
- develop president-level contacts among target companies
M&A Phase II
- screen acquisition targets
- assist in identifying synergies
- assist in developing joint business plan
- determine:
- valuation metrics
- incentive structures
- tax implications
- ongoing management and personnel plan
Strategic Alliances