Advance Capital covers the full spectrum of advisory services in M&A transactions: sale, acquisition, and merger of companies.
We partner with market experts from many industries — top management of companies, industry analysts of leading investment banks, — to provide clients with scrupulous analysis of their market options.
We credit our success to the basic principles that we commit to in our activities, including confidentiality protection of client information, avoidance of conflicts of interest, adherence to client interests, and thorough analysis at every stage of each project.
- Mergers and Acquisitions
Certain projects cannot be completed by a single company alone and require a joint effort from third party. Often the best way to approach such projects successful is via a merger.
In the process of organizing a merger, our company would help both parties of the transaction to achieve a wide range of strategic goals:
- Co-ordinate a development strategy of the integrated company, and estimate potential synergies of the transaction;
- Evaluate the merging companies to determine the share conversion rate;
- Determine the structure of the transaction: a merger could be structured as a merger or an accession. A merger can be formed at any level, whether it joins operating companies or holdings that run these operating companies;
- Develop a shareholders agreement that clearly states shareholder rights and obligations.
- Buy-side Advisory
One way to speed business development is by means of acquiring one or more companies. Such alternative may be an advantageous solution in case of reducing risks when entering a new market via a takeover of a market leader, or in case of increasing market share through consolidation of industry players. Furthermore, the development of business by means of purchasing other companies can catalyze an increase in the capitalization of the buyer.
After assessing various sectors of the economy and analyzing industry players, - we verify our work with market experts, - we prepare a short list of targeted companies that our clients may potentially acquire. As soon as the list of companies is finalized with investor, we start the process of confidential negotiations with the owners of targeted companies. We conduct comprehensive assessment of these companies by analyzing financial, commercial and other aspects of their business. Simultaneously, we offer the investor our professional recommendation on the options of structuring and financing the transaction. After determining the most interesting target company for the investor, we enter into exclusive negotiations with the target, and coordinate the transaction until its legal registration. We also provide our client with assistance in organizing and carrying out due diligence, and, - if necessary, - in hiring additional industry-specific consultants.
The portfolio of our completed transactions includes acquisition of a large equity stake in Sulzer AG; realization of the option to call the acquisition of an equity stake in Comstar-UTS by AFK Sistema; over ten acquisitions of mobile communications and hi-tech companies in Russia and six other CIS countries by VimpelCom.
We are proficient to give investors a sound conclusion on the fair value and the strategic need of their purchase, as well as develop the most appropriate structure of the acquisition. In the acquisition process, we always help our clients to minimize their risks through the use of both legal and economic instruments.