Mergers & Acquisitions
An overview of our Mergers and Acquisitions services.
In the East Africa financial marketplace, merger, acquisition and divestiture (disposals) activities continue as important means of achieving corporate and shareholder objectives. Capital | Africa provides companies with comprehensive merger and acquisition services. Our professionals possess an in-depth knowledge of of client companies and their acquisition and divestiture objectives. In addition, we maintain numerous close relationships, active domestic and international buyers. The firm has represented clients in numerous ways, including:
- Advising clients in the development and formulation of merger, acquisition and divestiture strategies.
- Identifying potential buyers or acquisition targets.
- Establishing valuation criteria and ranges.
- Developing alternatives and recommending appropriate courses of action.
- Arranging acquisition financing for buyers, consisting of all types of debt and equity (capital sources).
- Structuring and negotiating transactions.
- Identifying prospective equity and joint venture partners, and working with such partners to create the necessary arrangements to consummate each transaction.
- Structuring internal M&A transactions, including management and employee buyouts.
- Identifying, screening and initiating discussions with potential buyers/sellers.
- Assisting in the preparation of confidential information and selling memoranda.
- Coordinating legal, tax, accounting and other closing-related activities.
Our team in Tanzania assists clients to identify, structure and implement mergers and acquisitions. Our approach to mergers and acquisitions is geared to helping our clients answer four key questions.
- How do I operate my business to achieve shareholder value?
- Should I merge or acquire? If yes, with whom and how much should I pay?
- Once merged, how do I run my business to keep it on track?
- How do I manage these businesses to achieve shareholder value?
We are able to provide a unique service offering to ensure that our clients mergers and acquisitions are structured optimally and deliver value. Our team of professionals also helps companies design and implement corporate restructurings and disposals to release shareholder value. The team also helps clients raise funds for new and expansion projects. We are able to bring our extensive financial structuring and modelling and tax expertise to help our clients develop credible business plans and approach financing institutions.
CA advises clients on the use of mergers, acquisitions, disposals and multinational alliances to improve competitiveness and achieve their particular strategic and financial objectives. The firm would formulate a specific M&A strategy to identify and engage prospective M&A targets that best complement the client's business. CA can be involved in all stages of a transaction, including: advising the client on strategy and structure, developing a valuation range, and assisting in negotiating and closing the transaction.
M&A transactions can often be complex and difficult to complete. CA's approach to executing a client's M&A mandate is to garner and integrate the expertise of specialized professionals to ensure that transaction requirements are addressed in the most effective manner. In addition, CA recognizes that close collaboration with the client and a well-defined M&A process is a prerequisite for executing an effective M&A undertaking.
Increasing Company Value
CA advises and supports companies through the different stages of implementing defined growth strategies in an effort to increase company value. These strategies may focus on external or internal growth opportunities.
Acquisition Process for Buyers
CA assists buyers in realizing their growth and diversification plans by:
- Establishing targeted acquisition criteria and implementing an effective acquisition plan.
- Identifying, prioritizing and screening of acquisition targets.
- Preparing valuations of target candidates.
- Developing negotiation strategies and structuring the transaction on the most favourable terms.
- Coordinating the due diligence process to explore and uncover hidden risks and rewards that impact pricing and deal structuring.
- Advising and assisting in accessing capital sources to fund the acquisition.
- Managing the closing process to assure prompt, smooth closure of the transaction.
Realising Company Value
Company value is generally realized by executing the business objectives of a corporation. However, companies may realise additional value through the internal process of restructuring or other internal actions that would generate economic benefits to the company. External options may also be considered in the form of a divestment of an operating unit or equity in the company. Such undertakings are often complex and success would be enhanced by the professional approach, preparation and implementation through CA services.
Divestment Process
CA performs the following services for sellers to maximize value:
- Analyzing client's business and its operating environment to determine a range of values you might receive in the marketplace.
- Preparing a confidential Information Memorandum that highlights the strengths of the business and the unique opportunities afforded potential acquirers.
- Defining the goals of the seller and translating the unique needs and wants into effective deal-making objectives.
- Completing the confidential search for appropriate buyers utilizing our extensive internal and external network and fully exploring all opportunities.
- Evaluating offers as they relate to both financial and non-financial implications of the sale.
- Negotiating with prospective buyers to assure that seller goals are met, including pricing, deal structuring and intangible aspects.
- Coordinating, assisting and advising with respect to due diligence issues.
- Managing the closing process to assure prompt, smooth closure of the transaction.
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