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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