Why should I hire a Financial Advisor?
The buyout or sale of a company is a complex process that requires the completion of tasks on different fronts while identifying and attending to several interested parties. Having a specialized team who is responsible for the entire process allows the client to optimize conditions more efficiently without having to devote owner or management time and attention in order to handle exceptional situations. The owners and managers of countless companies have found that hiring an experienced financial advisor in these processes brings important benefits:
Confidentiality. The advisor can safeguard the buying of selling company’s confidentiality during the initial contacts with potential buyers or sellers by not divulging its identity. The advisor filters and disqualifies buyers or sellers who do not fit the desired profile.
Handling of the Process. A specialist focuses on identifying the main characteristics of the company to be bought or sold. Special care is taken to ensure that these align with the promotion or search of target companies. In a sale these are reflected in the documents prepared by the advisor to promote the company to those interested, which are prepared so as to present a complete image of all the characteristics that make such a company desirable.
In the case of a buyout the focus is on the acquisition criteria that will be used to evaluate target companies. In both cases a specialist should be able to develop a valuation of a company based on industry-recognized methodologies and design the most convenient structure for the transaction.
Facilitating role. Maintaining the dynamic between buyers and sellers in merger and acquisition processes is essential to achieve satisfactory results. The financial advisor organizes a work schedule that keeps all parties actively involved in the process, thus guaranteeing its development. It is also essential to monitor legal, financial and operational information requests and reply, and ensure their relevance and usefulness. The financial advisor is positioned to perform this demanding work and maintains the rhythm of the entire process. By contrast a business owner could only afford to devote time sporadically an individually to this process, which would mean a loss of control and a weakened negotiation position. The financial advisor saves valuable time for the owner of a company by taking charge of all tasks pertaining to the process.
Negotiation Assistance. The financial advisor can establish a better negotiating position and avoid the client’s exposure to the stresses of the process. The sale of a company is a complex task. If the owner of a company has never had this experience before, this can result in a disadvantageous position because in all likelihood the majority of buyers have completed many transactions in the past. Those sellers who are not properly prepared and advised can risk making unnecessary concessions. Many company owners work their whole lives creating value for their business but they can spend the final months destroying it because expensive mistakes are often made during the sale and negotiation process.
Hiring an experienced financial advisor such as SFA Consultores helps the seller get the best offer for the business. Similarly, it helps the buyer not pay too much during an acquisition. The financial advisor’s main occupation is buying and selling companies, while company owners only do that once in their lifetime.
EMX Capital Levanta $192.3 millones de Dólares para Adquisiciones y Capital de Crecimiento en México
12 de abril de 2013 Fuente: EMX Capital. EMX Capital se complace en anunciar la creación de EMX Capital Partners LP, un fondo con un total de compromisos de capital de $62.8 millones de Dólares de inversionistas locales e internacionales. EMX Capital Partners LP invertirá junto al vehículo mexicano de certificados de capital de desarrollo, también administrado por EMX Capital, el cual tiene fondeo de 1,544 millones de Pesos (aproximadamente $124.1 millones de Dólares). Por lo tanto, los vehículos combinados (conocidos como “EMX Capital Partners I”) han logrado levantar $192.3 millones de Dólares de capital para inversiones. EMX Capital Partners I invertirá en diversos sectores haciendo adquisiciones o inversiones de capital fresco para crecimiento. El fondo busca invertir en empresas mexicanas medianas a través de instrumentos de capital o afines a capital. EMX Capital Partners I evalúa inversiones principalmente de control en empresas que requieran capital de entre $15 y $65 millones de Dólares y planea hacer inversiones dentro de un plazo de cinco años. Los cuatro fundadores de EMX capital y líderes del equipo de inversión, Joaquin Avila, Rodrigo Fonseca, Miguel Valenzuela y Andrés Obregón, han estado trabajando e invirtiendo juntos por los últimos siete años. Inicialmente lo hacían como equipo de inversión para Carlyle México. EMX Capital busca obtener rendimientos de capital asociándose con equipos directivos que operen las empresas y aplicando la misma estrategia y proceso de inversión disciplinado que han venido implementando durante los últimos años. EMX Capital Partners I ha hecho dos inversiones a la fecha. Primero invirtió en ILSP, una empresa líder en servicios de seguridad y logística y después en AG Convertidora, un productor de empaque flexible de alta calidad. Los socios fundadores de EMX afirmaron, “Estamos muy satisfechos por el interés de los inversionistas en EMX Capital, especialmente cuando consideramos un ambiente frecuentemente volátil en los mercados de capital privado. Anticipamos oportunidades de inversión muy atractivas en México y tenemos un equipo sólido y enfocado para perseguirlas exitosamente. El fondo ha tenido un muy buen inicio con dos inversiones en empresas medianas con gran dinamismo. Cada una de estas inversiones se fundamentaron en nuestra red local de negocios y en la experiencia probada de EMX para invertir capital...
Leer másCinemex compra Cinemark de México
19 de Febrero de 2013 Fuente: http://www.diariodefusiones.com Acortando distancias que la separan del líder del mercado, la cadena de cines mexicana Grupo Cinemex SA de CV acordó la adquisición del 100% del capital deCinemark de México SA de CV, propietaria de 31 salas cinematográficas en México con un total de 290 pantallas que pertenecían a la compañía estadounidense Cinemark Holdings Inc. (ingresos 2011: US$ 2.279,6 millones, 9M sept-2012: US$ 1.861,9 millones, UDM sept-2012: US$ 2.397,9 millones) Con dicha adquisición, sobre la cual no se informó el monto involucrado, Cinemex pasó a operar un total de 231 salas de cine con 1.930 pantallas que sobre un total (al 31 de diciembre 2012) de 5.360 pantallas, le otorga una participación de mercado de aproximadamente el 36%. El mercado mexicano es liderado por Cinépolis que cuenta con 278 salas con 2.598 pantallas, equivalentes a un 48% del mercado. Previo a la transacción, Cinemex tenía el 30% del mercado de salas y Cinemark el 6%. La operación está sujeta a la aprobación por parte de la Comisión Federal de Competencia de México que deberá encontrar sólidos argumentos para aprobar la operación ya que de llevarse a cabo la misma, entre los dos principales operadores del mercado, concentrarán cerca del 85% del total. El riesgo no sólo está dado para el público consumidor en cuanto al poder de fijar precios, sino también, para los productores y distribuidores de...
Leer másGrupo Gigante ofertó US 690.5 millones por el 50% de Office Depot
22 de febrero de 2013 fuente :http://www.diariodefusiones.com Grupo Gigante SAB de CV (ingresos 2011: US$ 941,9 millones, 9M sept-2012: US$ 1.097,6 millones; UDM sept-2012: US$ 1.139,5 millones) holding de empresas de autoservicios, cafeterías y comercio especializado de México, presentó, a la firma estadounidense Office Depot Inc. (ingresos 2012: US$ 10.695,7 millones) una oferta de compra de US$ 690,5 millones por el 50% del capital de Office Depot de México SA de CV (ingresos 2012: US$ 1.171,0 millones) que aún no controla, expirando la misma, el próximo 28 de Febrero. En medio de un proceso de fusión entre Office Depot Inc y OfficeMax (ingresos 2012: US$ 6.920,4millones) (54% Office Depot, 46% OfficeMax) la oferta presentada por el grupo mexicano debe ser aprobada, no sólo por la propia Office Depot, sino también por OfficeMax en función de los acuerdo firmados con motivo de la operación señalada. De acuerdo a los números de Office Depot de México del reciente ejercicio cerrado en diciembre 2012, la oferta presentada por Grupo Gigante implica una valuación del 100% de aproximadamente US$ 1.380 millones que restando el cash disponible a esa fecha, da un valor de compañía de US$ 1.354 millones, resaltando que a diciembre 2012, la compañía no tenía deuda financiera....
Leer másIEnova de México obtiene US$ 600 millones
25 de marzo de 2013 fuente :http://www.diariodefusiones.com La compañía mexicana Infraestructura Energética Nova SAB de CV (IEnova) (Ex Sempra México SA de CV) (Ingresos 2012: US$ 607,6 millones) completó su Oferta Pública Inicial (oferta primaria) llevada a cabo en la Bolsa Mexicana de Valores, permitiéndole recaudar cerca de US$ 600 millones a cambio del 18,9% del nuevo capital, dejando valorizada la totalidad de la compañía en aproximadamente US$ 3.175 millones. IeNova, la primera compañía del sector energético que lista sus acciones en la Bolsa Mexicana de Valores, destinará el 10% de los fondos obtenidos para propósitos corporativos generales, en tanto que el 90% restante, se orientará a financiar planes de inversión existentes, siendo que un 75% se destinará al negocio de gas y un 15% al segmento de electricidad. La estrategia de la compañía en materia de inversiones se focaliza en una diversificada gama de activos de energía cuyo dominador común, sea la capacidad de generación de flujos de fondos estables y predecibles a largo plazo. La compañía se propone desarrollar una estrategia de crecimiento, ya sea a través de inversiones de capital en nuevos emprendimientos o ampliación de existentes o a través de adquisiciones. En términos generales, IeNova se concentra en proyectos cuyos contratos generen flujos de efectivo estables a largo plazo con contrapartes que gozan de un alto nivel crediticio. La compañía tiene contratada una parte sustancial de su capacidad actual a través de contratos a largo plazo con empresas de reconocida solvencia y altas calificaciones crediticias, que están obligadas a cubrir a la Compañía el importe de sus contratos, independientemente de que utilicen o no la capacidad...
Leer másMergers and Acquisitions
Mergers and acquisitions are a widespread practice worldwide. The benefits and synergies that can be obtained from mergers and acquisitions come from efficient management, economies of scale, an improved and more profitable use of assets, the cultivation of marketing power and the use of complementary resources. For SFA it is crucial to understand the dynamics of mergers and acquisitions. For example: When is the right moment for the sale of a company? Is the company ready to be sold? How much is it worth and how should that price be managed? How to prepare the company to reach its highest possible value? How can potential buyers be discreetly identified? How is the confidentiality of the process safeguarded? How can one confidentially research companies for sale? Who can be fully responsible for a sale process? Is it advisable to finance the purchase of a company? Under which structure? The main goal of a company is to grow profitably, thus increasing the value of its stockholders. Mergers and acquisitions are an indispensable strategic tool used to grow the product portfolio, enter new markets, acquire new technologies and build an organization with greater power and resources in order to compete in a globalized world. These processes are often also the solution to succession conflicts within family businesses. Finding the ideal partner and negotiating a transition in attractive terms are difficult tasks. A main factor for the success of a merger or an acquisition is to know how to communicate the value and probability of success of a merged company. It is necessary to quantify the potential added value that will be obtained and its strategic advantage. In this way mergers and acquisitions become a tool that allows companies to realize their full...
Leer másFinancing Advice
SFA provides advice in the optimization of its clients’ capital structure. We also offer support deciding whether to place debt or capital in its different forms. Furthermore, we also the financial aspects of the company’s strategic decisions. These could take the form of establishing an additional plant, making inroads into new markets or the buy/sale of a brand or business division. It is indispensible for a successful private equity placement to present a detailed investment plan that specifies the destination and performance of the required resources while showing a clear and defined strategy. SFA can assemble such a plan in a way that reflects the principles, experience and vision of the client. If the client already has a structured plan, SFA ensures that it complies with private equity fund requirements. Our firm carries out all aspects of the private equity placement process. These include the information prospectuses, presentations and financial projections that will support our clients’ business plans. We have access to several equity funds, both national and international, as well as private investors who trust SFA’s criteria to evaluate the viability of any business plan. Debt Placement Advice Through BCP Securities LLC (http://www.bcpsecurities.com/) our firm has access to a large group of institutional investors from the United States, Europe and Asia who are familiar with financing Mexican companies. BCP Securities has placed corporate debt amounting to over $7 billion dollars. One of the most common financing mechanisms is to establish a Eurobonds program that grants flexibility to the companies who use it because it shows the willingness to issue bonds in international markets at different intervals and in different currencies. The companies who issue bonds through BCP establish an institutional, competitive and efficient avenue of financing in the international markets....
Leer másBusiness Plan Development
A business plan is a formal declaration of a company’s goals. It explains the reasons why these goals are attainable and the strategy to pursue them. The business plan is a decision-making tool that must include all the information required to achieve said goals. The main value added by a business plan is the creation of a detailed written description that evaluates all aspects of the financial viability of a business. This document grants credibility to a good idea by crystallizing it in a way that is understandable and attractive to any reader. A business plan performs several key functions: Clarifies, focuses and researches the development of the project and its perspectives. The objective is defined and refined through the use and analysis of appropriate information. It provides a logical framework that can be used to develop and pursue the strategies of the company. It can act as a basis for discussion with third parties who are willing to finance the company –physical and institutional investors, such as banks. It is an essential tool for sales. It can uncover omissions and/or weaknesses in the business planning process. It is a point of comparison to measure and review the real performance of the company. A business plan should acknowledge that the company and the projects are not static objects. However, should also reflect the current situation and needs as well as future expectations. Additionally, it should emphasize the strengths of the company but also be realistic about the areas where it can...
Leer másValuations
How much is my company worth? Is a minority share of a company the same as a controlling share? How much should a retiring partner be paid for his/her shares? How long is a valuation valid for? A valuation implies a determination of the value of a business or a specific asset at a particular time. SFA conducts corporate valuations in several areas –whether valuing a business as a whole, its shares or its intangible assets (such as patents or trademarks). A professional and competent valuation must reach an accurate range of value as well clearly and convincingly establish how that figure was determined. Furthermore, a good valuation must be defensible and able to withstand any kind of scrutiny. The partners at SFA have conducted over 120 valuations throughout their careers. We consider valuation as both a science and an art. We also believe it is a mistake to adopt an overly mechanical approach. This is often done through the application of “valuation multiples” and the use of standard cash flow models discounted with uncertain growth rates and questionable assumptions. The result of these valuation techniques is sometimes out of sync with the realities of the market or the intrinsic risk and potential of a particular company. Our knowledge and experience allow us to evaluate the value generators of each company, which results in a valuation tailored to each firm. Our valuation techniques combine different approaches that analyze the unique position of each company in the market. Our methodological robustness allows us to make assumptions based on market realities while also accounting for risk factors. A valuation goes beyond building a financial model and adjusting certain parameters. SFA’s style implies identifying and calibrating every source of value in a business and validating each of the assumptions of the projection. This includes commercialization strategies, product and service placement and accurate market gauge. Our valuations offer buyers, shareholders, consultants and managers an essential decision-making tool. At SFA we are convinced that valuation is a critical step in any merger and acquisition process. A robust valuation reinforces the possibility of successfully closing a transaction....
Leer másServices for Sellers
SFA Consultores provides the following services to business owners looking to sell their business or part of it. Advise the buyer in defining the acquisition criteria. Develop a list of target companies through our database and other sources. Approach the stockholders of the target company on behalf of the buyer in order to assess their willingness to sell –all while safeguarding the confidentiality of the process. Develop information to help the buyer analyze target companies. Assist the buyer in search for financing if needed. Advise the buyer in the valuation of a business as well as the structure of the operation. Negotiate terms and conditions of the transaction, including, where applicable, the corporate governance, relations between partners and exit strategies. Close the sale in coordination with legal, accounting and fiscal...
Leer másServices for Buyers
SFA Consultores also provides services of financial advice for buyers who are looking to make an acquisition. In this case our services include: Advise the buyer in defining the acquisition criteria. Develop a list of target companies through our database and other sources. Confidentially approach the target company’s stockholders on behalf of the buyer in order to assess their willingness to sell. Develop information to help the buyer analyze target companies. Assist the buyer in search for financing if needed. Advise the buyer in the valuation of a business as well as the structure of the operation. Negotiate terms and conditions of the transaction, including corporate governance, relations between partners and exit strategies. Close the sale in coordination with legal, accounting and fiscal...
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