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Transaction advisory

MGrowing by acquisitions and the related M&A advisory service is less widespread in Hungary compared to the Western-European countries and the United States. This can be explained by the short history of our market economy and by the fact that the owners of the private companies established in the time of the transmission period have started to think only nowadays about how to hand over the operation of their precious venture.

Through our M&A practice, our aim is to support the owners of the Hungarian SMEs and help them to increase the value of their company, to find additional capital through a strategic or financial investor and to enhance the possibilities of an exit by selling their business.

The key fields where
M&A advisory can help?
  • Finding opportunities to exit by the sale of the business.
  • Estimating corporate value.
  • Making suggestions how to maximize corporate value.
  • Providing advice on how to solve the personal and technical questions related to corporate valuation and M&A.
  • Executing successful M&A transactions.
Why is it important to involve an
advisor in the M&A process?
  • An advisor has the necessary professional, financial, tax and legal skills.
  • An advisor knows the steps of company valuation, the most frequent problems and is able to manage the entire M&A process.
  • An advisor knows how to approach investors and it is more professional, if the owner does not negotiate directly with the investors.
  • In order to sustain a smooth relationship between the owner and the investor, an advisor can fulfill a “shock absorber” role between the two parties.
  • Whether the other party is a strategic or a financial investor, an advisor has deeper experience in the details of M&A transactions than the owner.

Corporate Valuation

As a part of the preparation for the transaction, it is useful to evaluate the company in advance. The result may serve as a good base when considering purchase bids for the company and it could also protect the owners against investor attempts to lower the purchase price. Nevertheless, making a corporate valuation could be useful when the exact decision for the sale has not yet formulated in the owner’s mind but he wants to know how much his company worth.

Maximizing Corporate Value

In order to execute the sale at the highest possible price, the owner should start the exit planning in advance and prepare the company for the sale years before the execution of the transaction. Before getting involved in the M&A process it is highly recommended to implement all of the investments and restructurings needed to increase the market value of the company. Certainly, an external advisor could have an important role in finding the appropriate steps for value creation.

Selling the Business

The complexity and the time needed to finish the overall M&A process depends on the aims of the owners, on the type of the transaction (selling an equity stake or receiving capital infusion) and the origin or type of the investor (domestic or foreign, strategic buyer or financial investor). Whatever is the reason behind the transaction, a common goal for the owners and for the M&A process is to maximize the purchase price offered for the given equity stake or for the overall company. Nevertheless managing the overall M&A process require significant amount of time and energy from the owner, therefore it is useful to involve a professionally qualified advisor in the process.

Capital Raising

Within our capital raising service we are dedicated to find the appropriate financial or strategic investor for fast-growing start-ups or other firms in mature or expansion stage with stable cash flow, in order to finance their further growth or development project with equity. Based on our investor relations our preferred industries are the following: information and communication technology (ICT), health care and life sciences, energy and the production of consumer goods.

György SZABOLCSI
Advisor – Transaction Advisory
szabolcsi.gyorgy@niveus.hu
+36 30 491 81 70

Should you need any further information regarding our Transaction Services, please visit the service line’s separate website (http://ncg-mna.hu) or do not hesitate to contact our key professional who will be at your service with pleasure.

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