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Mergers Acquisitions
Disposals

Companies’ development pathways mostly ally organic and external growth. The road to successful development of a company is paved with a combination of organic and external growth.

 

Whether they are originated in defensive or offensive strategies, external growth operations can be an opportunity as much as a threat.

 

Conducting transactions is very demanding, both technically and psychologically.

 

The experience and support of a trusted advisor is definitely a key success factor.

 

Our observations:

  • A significate part of external growth operations fail and don’t match with initial objectives

  • In most cases, companies perform external growth following opportunities rather than the outcome of a real strategic analysis

  • External growth is restrictive for the company often focused on its daily operations. Running transactions demand cold blood to permanently step back, analyse all the angles, evaluate options and take the right decision

  • Selling transactions are rarely anticipated and often handled in haste and with strong emotions once the decision is taken. The problem being that this attitude is in contradiction with the objective of an optimized valorisation of assets and skills
  • Selecting adequate targets and conducting sharp negotiations are essential, but it is the integration process which generates value and synergies. Failing to anticipate and monitor this critical phase increase the probability to turn an opportunity into a threat

 

 TYPES OF MISSIONS

Carving supports its clients in their acquisition or disposal deals.

 

We work side by side with managers to confirm their strategies. Once the relevance of a project and issues are clear, we work together with companies to optimize both conditions and chances of success.

 

Our mission can be divided in 3 main types of operations:

Acquisition advisory
  • Draw up a strategic and operational diagnostic
  • Build and validate the acquisition strategy
  • Organize the operation to reduce risks
  • Find relevant targets
  • Participate in the financial evaluation and in negotiation with lucidity
  • Prepare the integration plan from the beginning of the negotiations
  • Strictly implement the post-merger integration plan
  • Monitor synergies achievement
Support leaseback or disinvestments
  • Draw up a general analysis of the perimeter to be disposed
  • In case of partial disposal, assess the impacts of the project on the rest of the company or group
  • Prepare the operation taking into account deconsolidation aspects (with some ongoing economic relationships post-deal)
  • Define potential buyers profile
  • Participate in the financial evaluation
  • Formalise a presentation memorandum pointing out the strengths of the asset
  • Find buyers and lead the negotiations
  • Facilitate the intervention of the different advisors to ensure common understanding on critical figures and value drivers
Capital recomposition, fundraising, creation of strategic and financial partnerships
  • Support in the valuation process
  • Define investors profile
  • Search for the right partners (i.e. with a strong attention on cultural fit)
  • Facilitate the intervention of the different advisors to ensure the success of operations

Examples of missions

A few examples of missions we recently conducted:

Advisory on the disposal of 2 non-core companies for an international services group

Advisory on the disposal of 2 non-core companies for an international services group

Context : International cleaning and facility management group willing to focus on its core business. Leaseback of 2 independent companies. Duration : 15 months

Our action

  • Advisory and management of the transactions (10 M€ revenue freight forwarding company, 11 M€ revenue logistic provider)
  • Formalisation of a presentation memorandum about the two companies
  • Definition of perimeter and transaction strategy
  • Research of buyers
  • Close support and coordination during negotiations, audit and closing

Results

  • Deals finalized according to shareholders expectancies

Leaseback of a group composed of 17 companies in the Service sector

Leaseback of a group composed of 17 companies in the Service sector

Context : Retirement of the founder 15 months :

  • Interim management solution identification to support to the CEO during the selling process
  • Scope of 17 independent companies in 6 different activities (various road transportation niche, truck dealers, real estate, hotels)
  • 60M€ of revenues
  • Identification and implementation of short term operational improvement actions
  • Preparation of a presentation memorandum
  • Participation to the valuation conducted by a chartered accountant
  • Identification of buyers and support during the negotiation/audits

  • Apartment selling performed with either minority shareholders or industrial buyers

Strategic options assessment concerning 2 loss making business units

Strategic options assessment concerning 2 loss making business units

Context : French trading group with 2 loss making units in Tunisia. Duration : 4 months

Our action

  • Diagnosis of the two units (management and organization, market situation, industrial performance, financial situation)
  • Benchmark on in-house performance versus. alternative sourcing (quality, cost, time)
  • Assessment of strategic options:
    • Inventory and assessment of strategic options on each unit (cost/benefit, ability to implement, risks)
    • Recommendation to the Executive committee and the shareholders

Results

  • Approval of our recommendations and request to lead the implementation

Pilotage opérationnel de la cession d'une usine en Tunisie

Pilotage opérationnel de la cession d'une usine en Tunisie

Contexte de la mission : Groupe de négoce français ayant une usine de production en Tunisie. Usine en grande difficulté sans possibilité de retournement rapide. Durée : 10 mois

Notre accompagnement

  • Diagnostic de la société, scénarios d’évolution, chiffrage et recommandations
  • Rédaction d’un mémorandum de présentation de l’entreprise et prises de contact avec des repreneurs potentiels
  • Sélection du repreneur et négociation de la cession du fonds de commerce et la reprise partielle du personnel (100 personnes) et des actifs (machines, stocks, …)
  • Pilotage opérationnel de la reprise pour garantir la maîtrise coûts / délais en limitant les risques
    • Coordination des experts dans la formalisation de la vente et des étapes réglementaires
    • Gestion opérationnelle de la transition : accord commercial entre les 2 groupes, volet social, communication auprès des équipes / administrations, planification de la production, …
  • Liquidation amiable de la société

Résultats

  • Maintien de l’activité et sécurisation de la reprise de 95% du personnel
  • Cession en 4 mois à compter de la sélection du repreneur
  • Gain de 800 k€ par rapport à un scénario de liquidation total
Closure of a factory in Tunisia

Closure of a factory in Tunisia

Context : French trading group with foreign plant producing gloves. Loss-making activities with no perspective of recovery. Duration : 12 months

Our action

  • Diagnosis of the company, scenarios of evolution, assessment and recommendations
  • Creation of a memorandum presenting the company and identification of potential buyers
  • As no creditworthy buyers were identified, recommendation was to liquidate the company
  • Full management of the implementation: selection of local experts, negotiation and management of the social aspect (100 people), reduction of the exposition of the group (stock and other assets disposal), internal and external communication, operational transition, selection of new suppliers

Results

  • Closure of the factory in 6 weeks once the decision was taken
  • Positive social climate and optimization of the financial/administrative aspects in coordination with local experts
  • Supplies secured thanks to new and more profitable deals between the parent company and substitute suppliers

Testimonies and references

Our clients briefly describe us:

Carving en quelques mots : Compétent, Couteau suisse, Humain.

 

Carving nous a accompagné avec empathie et une grande efficacité dans nos réflexions familiales sur une possible cession du groupe. Leur apport a été décisif pour nous permettre de cheminer ensemble et faire émerger une décision sage sur la stratégie à conduire.

Je recommande leur professionnalisme et leur vision affutée d’entrepreneurs connaissant bien le terrain.  

Carving en quelques mots : Compétent, Couteau suisse, Humain.   Carving nous a accompagné avec empathie et une grande efficacité dans nos ...
Mr X – Président d’un groupe familial français
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Professionalism, commitment, trustworthy, operational vision.

 

First of all, I would like to emphasize the professionalism of Carving team in the logistics and transport industry. Carving has a real expertise and business network.

 

Then, I appreciated that Carving was as involved as we are in our operations. The way they handled the project was outstanding, which is not always the case in M&A teams.

 

The third characteristic I would point out is the ability to facilitate common understanding and finally a real relationship between buyer and seller.

 

Finally, Carving allowed us to better understand our businesses emphasizing our strengths and areas of progress with the adequate indicators. This vision, more operational than financial, is an asset for Carving, as opposed to most M&A teams.

Professionalism, commitment, trustworthy, operational vision. First of all, I would like to emphasize the professionalism...
Jean-Claude Saltiel – President of Atalian holding group
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Relevance, Accuracy, Efficiency, Results.

 

Carving intervened on complex and varied topics for us : plant closures, rationalization, and leaseback of a production unit. The added value of Carving was its continuous implication with exemplary technical skills on all aspects. After a thorough analysis, their advice was crucial in order to take quick decisions and move into action. Acting like managers, they are experienced people adapting perfectly to the company issues with a wide range of skills : financial, legal, operational …

 

Having worked with other consulting companies, I rarely saw a team with such implication in the success of our projects. From now on, Carving has my entire confidence and is our partner in the transformation of the group.

Relevance, Accuracy, Efficiency, Results. Carving intervened on complex and varied topics...
Pierre Manchini – General Manager – RG Safety Group
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See also: Strategic and Operational Consulting