We are fortunate to have developed a proven methodology that has kept pace with the changing needs in the market, backed by decades of experience nurturing and closing mid-tier M&A transactions. In our mind, three fundamental steps are key:
Methodology
Stages in the M&A (Mergers and Acquisitions) Process
We believe that the success of a project is the balance between the expectations of the selling entrepreneur and those of potential buyers. For this we apply proven, safe parameters, comparative market analysis (benchmarking) and thoughtful decisions that make a difference in the result.
Below we illustrate one complete cycle of a M&A (Mergers and Acquisitions) process spanning 12 months.
Assignment Letter’s Signature and Initial Meeting
The first step is the signing of the Assignment Letter, a document that defines the rules and the relationship between BR Advice and the client. The second step is to hold a meeting between the shareholders of the selling company and our key staff responsible for the project development, for initial strategic alignment about the company and the partner’s expectations regarding the operation.
Information Collection and Business Understanding
Capture of necessary information for the M&A (Mergers and Acquisitions) process to include understanding business model, company history, market segment and financial behavior over the years.
Auditing
Analysis of information received and preparation of extensive audit of company’s financial, legal and strategic information, to facilitate structuring company to meet compliance standards required for M&A (Mergers and Acquisitions) process and to mitigate potential risks to the transaction.
Company Valuation
Elaboration of the company's financial modelling and valuation using different methodologies, considering growth projections.
Materials Development
Development of the company's presentation materials, which detail the company's operation, investment thesis, market, financial information and others.
Roadshow
Selection of financial and strategic potential investors that make sense to the transaction in order to launch the opportunity to the market. Interaction with these potential investors through the signing of the Non Disclosure Agreement (NDA), availability of company presentation materials, in addition to holding meetings to answer questions about the business.
Negotiation
Solicitation and receipt of investor proposals to facilitate analysis and discussion among selling shareholders prior to engaging investors whose proposals are more aligned with the selling company’s plans.
Auditing
Investor audits the business to ensure accuracy, consistency and validity of numbers, documents and information presented during the process.
Purchase and Sale Agreement
Drafting and negotiating of purchase and sales contract.
BRAdvice Methodology
Business Preparation
- Understanding, analysis and evaluation of the company
- Accounting, tax, labor and legal auditing
- Assessment and mitigation of potential transaction risks
- Development of company presentation materials
Negotiation
- Selection of potential investors list with access to more than 100 countries
- Negotiations with investors
- Receipt of proposals and preparation of parameters for the selling shareholder’s analysis
Conclusion
- Driving auditing (Due Diligence) to be held by the investor
- Validation of numbers, documents and information submitted during the process
- Drafting and negotiation of the purchase and sale agreement