Facilitation Services For M&A and Divestures

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M&A

At CNFA, we endeavor to provide most optimal and cost-effective funding solutions by connecting our clients with International Financial Institutions and Private Equity Firms.
Our team manage entire financing process, from identification & assessment of potential lenders to final negotiation for:

Strategic planning and goal definition

Purpose: By defining the objectives for pursuing an M&A deal, such as increasing market share or gaining new technology.

Assessment: By evaluating the current market conditions and a client’s financial position and future projections.

Target identification and screening

Search criteria: By establishing specific parameters, such as company size, financial performance, and market presence, to define an ideal target company.

Target list: Our team provide a list of potential acquisition targets that meet the predefined criteria. We manage this by leveraging our industry networks along with extensive market research.

Preliminary review: We evaluate potential targets based on available public information, including financial statements, annual reports, and press releases.

Initial contact and non-disclosure agreements

Outreach: Our team reach out to potential targets to gauge interest in a deal.

Confidentiality: After doing preliminary meetings, we execute a non-disclosure agreement (NDA) to allow the exchange of confidential information for protecting interest of both the parties.

Preliminary evaluation and valuation analysis

Letter of Intent (LOI): After conducting meeting among both the parties, we advise buyer to send a non-binding LOI that expresses interest and outlines the proposed deal’s key terms, such as the potential price range and deal structure.

Valuation: The target provides financial information for the acquiring company to perform a preliminary valuation. This is used to assess the deal’s viability and determine a reasonable price.

Synergy assessment: Consider the potential value created by combining the two entities (synergy) to ensure the deal is worthwhile.

Pre Merger Due Diligence Planning

Support in appointment of a multinational Legal Firm (Any Big 4 Audit Firm or any other suitable firm based on size of the deal)

Risk identification: we coordinate for due diligence process to uncover potential risks and liabilities, including legal, financial, and operational issues.

Integration strategy: Outlining a high-level integration strategy that addresses how the two companies will be combined, covering aspects like assets, systems, and operations.

Divestures

To facilitate our clients in getting right buyer for strategic move to sell, exchange, or close a business unit to raise funds, focus on core competencies, or increase shareholder value. Our team advises business on:

Sell-off

Direct sale of a business unit to another company or investor. The parent company relinquishes all ownership and control.

Spin-off

A company creates a new, independent entity from an existing business unit and distributes shares of the new company to existing shareholders. This allows both entities to operate separately.

Carve-out

The parent company sells a minority interest in a subsidiary through an initial public offering (IPO). The parent company typically retains a controlling stake.

Split-off

Shareholders of the parent company are offered the option to exchange their shares for shares in the new subsidiary. This is different from a spin-off, where shareholders automatically receive shares in both companies.