Transaction and financing

Times of important financial transaction are often the pivot points of any business’s success. At the time when the whole business is on the line, having a dependable help and advice is critically important. At Econlab, we bring expertise to you that helps the transaction and financing process run smoothly.

Our Expertise

  • Transaction advisory
  • Synergy analysis
  • Post-merger integration
  • Restructuring and business review
  • Bank and project financing

Most fundamental part of a deal to perform a comprehensive due diligence of business being acquired (buy side) or being sold (sell side eyes of the buyer) to evaluate its future potential and vulnerabilities. In addition to standard due diligence engagement Econlab brings high added value through added analytical focus. This is especially important in fields of banking, insurance, energy markets and other endeavours with opaque value drives. Our extensive experience in financial risk management also ensures we will uncover all the potential risks facing the business or transaction.

As part of the transaction process we help clients to uncover any potential deal breakers, navigate the closing and deal structures, as well help in understanding the implications of warranties and indemnities.

Synergies are a key driver of M&A activity, but they are also the part that most commonly go awry in deals. In fact, in majority of transactions, planned synergies fail to realize. This often leads the buyer to pay for synergies, that are not existing, or buyer failing to identify synergies that would drive the target value over the finishing line. Therefore, having a realistic look of the synergies prior or during the transaction process is essential, and often strategically more important than a standard due diligence exercise.

We help our clients identify the key synergy areas, help them financially evaluate them, and help put in place a feasible plan to capture these synergies.

With these critical steps performed in objective manner, we can help deal to succeed, or in often more importantly help you avoid a deal that should not go through.

Closing a acquisition is only the end of first chapter in the acquisition process. The main work is to capture the value of evaluated synergies. This process is far from easy and should not be left as an afterthought. Econlab can help formulate an effective integration strategy and assist in its execution. As a part of the process we can help the C suite in making the tough choices that are part of the process, analyse the strengths and weaknesses of each entity to determine what should be the joint modus operandi, and create investment and divestment plans that streamline joint operations.

At times businesses tend to hit a hard patch. At those times it is critically important that the direction taken is the right one. We can help companies or banks in evaluating the businesses current state and help craft a plan to get the company’s finances in order. For a company for which the overall direction is not yet clear, we can perform an independent business that reveals in the unbiased manner, what is in the best interest of funders. If the company’s operations have sufficient long-term potential it, we can create a restructuring plan, that gives the company appropriate leeway to operate without compromising the lender position.

For many ventures, acquiring affordable debt financing is a key driver of shareholder value.

To secure such financing, banks need to feel exceedingly comfortable, that the business being funded is going to be sustainable. Econlab can help in getting this message across. We help clients in loan applications,  bank negotiations and drafting appropriate financing structures.

Having a very close relationship with most of the local banks, we can provide insights into how banks are approaching the financing decision. This helps us craft financial plans that are well supported by fundamentals and that takes into account uncertainty. In this way we reduce the unknowns for the bank, making it easier for them to extend favourable terms.

Selected references

Created a Financial feasibility study for an industrial plant. The estimated investment value is. EUR 100M +.

Evaluated the possible operational & strategic synergies as part of a logistic industry acquisition process. The EV of the target was in the region of EUR 100M

Advised on the process of integrating two nationally important banks after merger. The main focus was integration of risk modelling functions.