“Professionalism of the Trigentis advisors has led to an optimal structure for our MBO transaction. Sound preparation, a healthy dose of creativity and good teamwork were the most important building blocks of this result.”
Acquiring a company
Trigentis always acts strictly confidentially when assisting in the acquisition of a company. Depending on the requirements of the buyer, Trigentis draws up an acquisition profile, identifies takeover target companies and guides the entire process from market studies, valuation and price setting, negotiation, due diligence and financing through to the definitive acquisition contract.
Trigentis acts for strategic parties, financial parties and private individuals (management buy-ins and management buy-outs).
It is becoming increasingly common for businesses to grow by taking over other companies. This is often prompted by the company’s inherent desire to grow, but acquisition strategy can sometimes also be driven by changes in the competitive environment. There are three ways for companies to achieve their ambitions to grow: by organic growth, through strategic cooperation, or by taking over another business.
A number of preconditions have to be met if an acquisition strategy is to be successful. The proposed transaction must fit in with the overall company strategy, for instance. The risk profile for opportunistic takeovers is less favourable than when takeover targets are sought out deliberately. In addition, the management team must have the appropriate skills and sufficient capacity to be able to run the new, larger group properly.
There are three ways for companies to achieve their ambitions to grow: by organic growth, through strategic cooperation, or by taking over another business
Trigentis assists companies during strategic takeovers. In consultation with the client, parties are selected and then approached confidentially. This working method ensures that the anonymity of the client is preserved for as long as possible. Trigentis makes recommendations about the value of the takeover target and analyses any synergistic components. During the assessment stage, the blueprint for financing the acquisition is also set.
The second group now appearing on the market in increasing numbers are financial parties. Over recent years, Trigentis has built up an extensive network of both national and international investment funds and private investors. Because a financial party does not generally take up management positions, any such transactions will always happen in close consultation with the existing management or a new team. If desired by the financial party, Trigentis can also monitor the interests of the financial party post transaction.
A significant category of potential buyer is private individuals who want to realise their own entrepreneurial ambitions by taking over a business. Over recent years, Trigentis has successfully guided numerous management buy-ins (where the new management takes over) and management buy-outs (where the incumbent management takes over).
Management buy-in (MBI)
Potential MBI candidates have the following profile:
• extensive work experience at the management level, often internationally
• highly educated
• able to bring sufficient resources of their own to the table
• a clear picture of the intended sector and the type of company
Management buy-out (MBO)
If the management team (or one of the members of the MT) wants to buy the business from the existing shareholders, it is referred to as an MBO. The major benefit of an MBO is that the manager or management team already knows the business very well, which naturally makes this type of takeover less risky.
Trigentis regularly acts for MBO candidates or MBO teams. The first step is often to find out whether the current shareholders are prepared to discuss a sale. This is done confidentially, thereby provisionally keeping the management at a safe distance.