Opinions of Value

An opinion of value is an independent statement made by a financial expert about the fairness of the terms in a specific financial transaction.  Opinions of value are used in corporate transactions, where there is a close relationship between the parties, and also between unknown parties. For example, if a publicly traded company makes a public buyout offer, the opinion of value is necessary to ensure that the financial terms and conditions are fair for the investing public. An independent financial advisor is indispensible to issue an opinion of value. Additionally, this advisor must have the necessary experience to analyze the financial terms of the transaction using methods accepted by the financial...

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Debt Restructuring

The partners at SFA Consultores have ample experience in the processes of financial restructuring. They have worked with such diverse sectors as airlines, construction, transportation and real estate. Their experience has allowed them to assist the companies and their creditors, reaching settlements both in courts and outside them. We have assisted our clients in successfully navigating the troubled financial areas of trading contests in Mexico and those of “Chapter 11” in the United States as well as the liquidation and/or sale of important assets and the coordination of large groups of advisors in legal, fiscal, technical and accounting areas that are required in these complex...

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Business Unit Divestment

Successful companies do not only invest, but also know when to divest assets that are no longer strategic. When evaluating the best way to manage their operations, they simultaneously consider the areas where they want to grow and those that are no longer part of their business.   Letting go of non-strategic assets can allow the management to concentrate on their central business. That way they can transfer operations that are not their main focus to new owners where these can be developed more productively. The experience of SFA in divestments has shown us that in order to maximize the exit value of a business, the divestment program has to work on two fronts simultaneously: the relation of the divested company to the seller’s remaining properties the targeted promotion of the asset with the...

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Mergers 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...

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Corporate Successions

Periods of stock and management succession are crucial in the lives of family firms. Over the past 15 years the partners at SFA have developed useful experience on this type of transitions. SFA can advise all parties on the renge of options available to them. These may include hiring staff outside the family, establishing controlled trusts, partial sales and restructuring of family assets. Our advice has allowed many such firms to maintain family harmony and preserve their legacy for future generations. The value generated by the company over time is at risk without proper planning that allows all family members involved –as well as the managers- to optimize their returns as a function of their priorities. Due to their ad hoc nature, in these cases the creativity and experience of the financial advisors are paramount. In SFA’s long experience in the matter, no two cases have ever been the...

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Management Buyouts

Sometimes the most qualified buyer is the current management. SFA Consultores provides advice to conduct a buyout by assisting in the valuation, structuring, negotiation and financing for the transaction. This often applies particularly to family firms where the founding partner is unable to find a relative interested in continuing the business.   The peculiar nature of this transaction is defined by the management’s role as a buyer and the consequences derived from this. Typically the management does not have the necessary funds to buy the entire business, which is why frequently financing is required. A second option is partnership with a source of private equity due to the complexity of a process that usually requires large sums of...

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Services 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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Services 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...

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Valuations

  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...

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Business 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...

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Financing 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,...

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Sofia Ostos

Analyst at SFA. She assists with the collection and analysis of industry information as well as drafting memos and corporate presentations.   Education Last semester of B.A. in Banking and Corporate Finance from Universidad Anáhuac del Sur (Mexico)   Semester abroad at the Catholic University of Lyon (France)   Languages English, Spanish and basic...

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Ramon Barrios

Project Director at SFA. With over seven years of experience in this firm, he has made firm valuations, financial models, information memoranda and corporate presentations. He has participated in a wide range of projects, which include the areas of direct sales, specialized trade, consumer credit, hospitals, software applications and pharmaceutical laboratories. The value of these operations ranges from $3 million to $72 million dollars.   Education B.A. in Actuarial Sciences from Universidad Anáhuac del Sur (Mexico) B.A. in Corporate Finance and Banking from Universidad Anáhuac del Sur (Mexico)   Languages English and...

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Raul Robledo

Partner at SFA. He has accumulated extensive experience in corporate finance and mergers and acquisitions. He has worked for over twenty years in leading investment banks such as Elek Moreno Valle y Asociados, Lehman Brothers, Banque Indosuez, ISEFI and Valores Finamex, with an accumulated participation of over $10 billion dollars in mergers and acquisitions and over $5 billion dollars in financial restructuring. Previously he worked at Grupo Alfa and spent three years in the Financial Division of Procter & Gamble in Germany.   Education M.B.A. from Stanford University   B.S. in Chemical Engineering from Universidad La Salle (Mexico)   Languages English, German, Spanish French (advanced...

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Alejandro Frias

Co-founding partner of SFA Consultores. He was previously vice-president of mergers and acquisitions at Grupo Financiero Bancomer. Before that he worked at Casa de Bolsa Inverlat and Casa de Bolsa Probursa investment banks. He has collaborated in transactions in the range of $7 million to $450 million in industries such as pharmaceutical, trading, ports, direct sales, mining, financial services, IT, software and health. Education M.B.A. from ITAM B.A. in Actuarial Sciences from Universidad Anáhuac del Sur (Mexico)   Languages English and...

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CANEC International

  CANEC  INTERNATIONAL www.canec.com   Canec is based in Toronto, Montreal and Paris, and has developed privileged relationships with other M&A firms in various countries. Canec specializes in mergers and acquisitions in the following sectors:  Aerospace, Animal health,| Automotive, Food & Beverage, Metals, Nutraceuticals/Cosmetics, Packaging, Plastics, Telecom & Media, Electronic Manufacturing Services and Specialty Chemicals...

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B.A. M&A

  www.bamacf.com Corporate Finance and Mergers and Acquisitions (M&A)  for Latin America and Global coverage. Leading Latin American investment banking boutique established in 1997 with offices in São Paulo (Brasil), Buenos Aires (Argentina), Bogotá (Colombia), Lima (Perú),  Montevideo (Uruguay) y Miami (USA). Exclusive member for Latin America of Translink Corporate Finance – a leading global network of independent investment banking and corporate finance...

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