Acquisitions and disposals

DISPOSALS

Business owners often face the choice: to further develop their business or sell it to another investor.

As early as at this stage of making this decision, there is often a need for a financial adviser. The value of such an adviser is his ability to look at the company without the emotional bias typical of business founders, review all possible business development scenarios and offer the client an impartial outlook on the company.

Essentially, this can be considered as a strategic advice to help stockholders take a balanced decision regarding the future of their asset.

If the owners decide to sell their company, a financial adviser can help arrange the process so that the client gets the highest price possible for their asset, while offering adequate level of guarantees to the buyer.

A key element in arranging any business disposal deal is to identify potential buyers:

• Identify the right value of the asset both for the seller and for each possible buyer
• Properly position the company and the sellers in relation to each possible buyer
• Select the optimal strategy for the disposal process

Peregrine Capital has considerable experience in executing business disposals in various industries.

Having the advantage of being independent and free of conflict of interest, we have advised sellers on multiple occasions arranging best possible tender processes engaging a wide range of financial and strategic investors from Russia, the CIS and abroad.

ACQUISITIONS

Natural growth of a business or its expansion through acquisitions of other companies are two possible ways for any company. They perfectly complement one another and do not come into conflict.

Acquiring a business in a strategically important industry or key region may provide a number of significant benefits, such as saving time in a fast-growing industry, buying assets at a price significantly lower than the price of «greenfield construction», or expanding a company's line of products.

In any case, the buyer needs to do a careful preliminary analysis to identify the synergy value and the risks of buying a new business.

After identifying a list of target companies and rough valuation parameters, the next priority is to structure the acquisition process so that the buyer can perform a comprehensive assessment of the acquired company and get as many guarantees and affirmations as possible in the legal documentation for the deal.
Moreover, further detailed analysis of potential synergy from buying a company and combining it with the existing business must be done, as well as analysis of the risks associated with integrating the businesses together.

We have vast experience in implementing deals of various complexity, where Peregrine Capital acted as an advisor to Russian and foreign buyers.

Together with legal and tax advisors, we develop acquisition strategy taking into account the nuances of Russian law and the law of the buying company's jurisdiction.

Being an independent firm, we offer our client an impartial advice on the strategic importance, fair value and the most acceptable structure of an acquisition to make sure that our client can avoid or be insured against the risks existing in the acquired business.