International Development & Finance
                           
                                                              CORPORATE ACQUISITIONS

    Acquisitions can be very beneficial to companies for a wide range of reasons, including:

  • economies of scale
  • expansion of geographic territory and distribution capability
  • expansion of product lines and/or proprietary technologies
  • synergies with existing product or service base
  • diversification of revenue base, and/or of seasonality or cyclicality of the business.
  • expansion of executive and middle-management talent base
  • rejuvenation of corporate culture
  • improved brand recognition

    Acquisitions can also be highly risky undertakings if they involve:

  • significant increases in debt and debt service requirements
  • significant balance sheet impairment to the buyer, or tax exposure to the seller.
  • the merger of very distinct corporate cultures
  • a lack of synergy or complementary corporate value
  • integration of vastly different systems and processes.
  • no economies of scale

         IDF helps companies to evaluate, select, negotiate and finance corporate acquisitions. The bottom line is
        that an acquisition should provide the acquiring company with better market share, survival capability and  
        with better earnings per share over the following years. .

                                                            CORPORATE DIVESTITURES

    Private companies are often sold when the founders seek to retire and simplify their estate matters,
    and when there is no succession plan for the company.  In such cases, management or employee buyouts
    are an option, as is the sale of the company to a third party.

    Companies also often determine that their mix of products and services, or corporate assets and liabilities
    are not optimised for current market conditions.  It can become beneficial to divest a division or a subsidiary if:

  • a company has excessive debt and needs to downsize to pay down debt quickly
  • a division or subsidiary has poor operating performance and management has
                             been unable to effect a turnaround in that performance.
  • a division or subsidiary has no synergy with the rest of the company.
  • the division or subsidiary is a "cultural bad apple" among thriving units.

    IDF helps retiring owners and ongoing companies to develop plans, presentations and marketing strategies
    related to corporate or divisional divestitures.  As a discreet third party, IDF assists owners in these activities
    without disrupting morale within the company or division to be divested.  IDF also can skillfully pre-screen
    potential buyers to ensure that owners do not waste time with unqualified parties.

                                        Tel. (1)  832-878-4614, wgehle@internationaldiligence.com