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As many industries consolidate, M&A advisory services become not just a luxury, but necessity for companies trying to survive turbulent times. TSI’s M&A advisors can assist our clients in the deployment of transaction strategies and the identification of potential take-over targets or buyers.
After helping to devise transactional strategies, TSI advisors assist in the actual execution of those plans by:
- Sourcing potential targets or buyers
- Effectuating required documentation, including offers,
letters of intent, and confidentiality agreements
- Leading negotiations or providing negotiation assistance
- Conducting due diligence, or assisting in the due diligence effort
- Co-ordinating activities among professional advisors
acting for TSI clients
Sourcing and Acquisitions Strategy
Obviously, locating an acquisition target lies at the heart of any acquisitions strategy. TSI has been active for more than 16 years in the fields of transportation, logistics and supply chain management. As a result of these years of experience, we have gained a deep and thorough knowledge of, and in some instances familiarity with, many of the players in these industry sectors. This knowledge and experience allows us to ferret out and introduce interested buyers to companies that they may wish to acquire.
We can also assist an acquirer with the development of an acquisitions strategy. History indicates that only 15-25% of all business combinations live up to expectations. This statistic clearly demonstrates why a well conceived acquisitions strategy is of the utmost importance. TSI Group believes that a proper growth strategy must include: a well defined business plan; an approach to growth that organically fits such business plan; and, a well developed growth strategy that honestly implements the defined business plan by accurately defining eligible targets in terms of size, type and geography.
Selling or Divesting a Business
Businesses are always facing the inevitable question of if and when to exit either a field as a whole or one particular area in which they are engaged. TSI Group professionals can assist in the development of sales strategies of entire businesses or a portion of an existing business.
Succession Planning for Business Owners
At the end of a career, the business owner must face the question of who is to succeed him or her. Does the business owner have an heir apparent? And if so, is that heir apparent qualified by education, training and experience to take on the challenges of leading the business into the future? If no family member exists to lead the business, is there an employee group, competitor or other interested party available to succeed the business owner?
TSI Group advisors help entrepreneurs answer these questions, as well as help maximize value of businesses when it comes time to move on.
Due Diligence
Even if a growth strategy is well conceived, an appropriate target identified, and an acquisition contract negotiated, a merger and acquisition transaction is still susceptible to many pitfalls that will place it in that 75-85 percentile group of failed business combinations. The due diligence aspects of any prospective transaction are the most important aspects of any contemplated arrangement. Ensuring that you are really getting what you want is the crux of any acquisitions strategy.
TSI Group strongly believes in conducting both business and cultural due diligence.
Business Diligence
Business Diligence is the process of making certain that all aspects of a target's business operation are: exactly what you expect they are; exactly what the contract documents represent them to be; and, exactly what you require and want.
Cultural Diligence
As a result of the high incidence of failures of business combinations, a highly regarded New York based law firm conducted an examination into the reasons of why so many mergers fail to achieve expectations. The firm cites seven primary reasons for failure, with the first reason being “culture clash”. TSI Group recognizes the importance of harmonious cultures in achieving a successful business combination, and recommends that Cultural Due Diligence form a part of any due diligence effort.
Transaction Structuring and Financing
Finally, TSI Group can assist in developing both the deal structure and the implementation of that deal structure. Whether the acquisition be an asset purchase, stock purchase, or hybrid, TSI Group can assist in recommending and analysing which structure will ensure maximum benefit with minimum risk.
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