Not every target on the market suits strategic considerations. In transactions, criteria other than price frequently play an important role, such as restructuring the competitive landscape or securing an adequate successor at the helm of the company. This is where IBEX SUMMIT starts to work for its clients.
For our clients, we offer a confidential exchange of information and judgement. At the same time, we act as a sounding board and provide expert know-how and experience while taking into account the key success factors of our client as they relate to the transaction. With a thorough understanding of the activities and perspectives of our clients and their attractiveness for potential transaction partners, we support developing the strategic vision to be communicated externally.
A well-researched and documented sales memorandum provides valuable support to the seller of a company for approaching attractive investors. For raising venture capital, a comprehensive business plan is a necessity. Through numerous acquisitions and financing transactions, we have developed a detailed understanding for the perspective of potential investors and are able to effectively address their specific information needs.
Compiling a long list is often the first step in identifying potential transaction partners. It may initially be based on industry data and previous contacts. Together with its clients, IBEX SUMMIT frequently complements the list in line with strategic considerations in order to identify the best transaction partners and to realize the best value for its clients.
We support our clients with the adequate valuation tools and work in close cooperation with their tax advisers and auditors. The valuation reflects historical data as well as parameters derived from the strategic vision communicated in the business plan.
In order to actually realize the theoretical value of a transaction, it is frequently decisive to understand and precisely address the agenda of the potential transaction partners. In a first step, this may require a specific fact driven analysis of their agenda. This serves as a basis to quantify individual premiums or discounts, for example for synergies or integration costs, which can be introduced during the different negotiation stages.
It is essential to control the flow of confidential information. This may begin with a personal contact and an anonymous summary. Given serious interest and secured confidentiality, more information is gradually released. Continuous supervision and actively driving the process are important elements of our work.
Investors are typically confronted by sellers or company founders with historical data and a business plan promising a bright future. While the primary focus of classic legal and financial due diligence is often on the past, IBEX SUMMIT concentrates on the commercial future of the target. When working on the sell side, IBEX SUMMIT is focusing on the proactive preparation and the representation of the interests of its clients during the due diligence process.
We analyze the reliability of historical data as it applies to the future. Then we identify and evaluate fundamental risks and opportunities as they relate to the market and the competition, the structure of revenue and costs, the core competencies and technologies. We take a particularly close look at the sustainability of growth and profitability of the target. Frequently, an integral part of our mission is to identify potential value gains that are not reflected in the seller's business plan. This gives our clients a competitive edge if the target is sold at auction.
Together with our clients, we prepare the due diligence and guide the auditing activities of potential investors and their advisers. The preparation of the due diligence is seamlessly coordinated with the business plan. Along with ensuring a smooth process, our objective is to be adequately prepared to answer critical questions.
Usually it is only decided in this phase how much of the preparation can be translated into contractually guaranteed results. Rarely can more value be generated or lost in a shorter period of time elsewhere. IBEX SUMMIT cooperates very closely and intensively with the decision makers of its clients to achieve the best result possible.
Together with our clients, we develop a specific transaction structure based on the preparations made up to this point. Special attention is placed on an adequate assessment of opportunities and risks and the consistent integration of the individual elements including, for example, operational, strategic, tax, and legal considerations.
We lead the negotiations from initial contact to closing. Frequently, we proactively develop alternative negotiation scenarios and evaluate their impact on the total result. In many cases, a careful preparation plays the decisive role in realizing potentials in the negotiations which would not be possible otherwise.
We closely coordinate the timing and the individual elements of the negotiation process with our clients. The particular interests of each negotiation partner are specifically addressed in our negotiation approach. During the entire negotiation, our clients have access to many years of experience from transaction advisory work as well as from investing own funds as entrepreneurs.
The success of a transaction is usually determined by the economic realization of the negotiated results. Also, after the formal closing of a transaction, IBEX SUMMIT continues to support its clients until this very realization.
After a disposal, the payment and possibly other obligations are due as specified in the contract. An important task in every transaction is to prevent defaults by selecting the right transaction partner and structuring the transaction. However, defaults may nevertheless occur in rare instances. This is typically for reasons beyond control. We then provide our clients with full support in realizing their legitimate claims, for example, in follow-on negotiations or during litigation.
Following an acquisition, our projects are directly aimed at profit enhancement. Programs for revenue growth frequently have perspectives over a longer term. Examples include a targeted approach to profitable customer segments, exploiting shifts in distribution channels, and reinforcing the sales organization. Prompt initial success can often be reached by streamlining fixed and variable cost structures, for example, in purchasing, manufacturing, and administration.
After raising venture capital, we frequently support the realization of the value potential similar to a post merger integration. Additionally, we provide specific know-how and other resources by assuming designated responsibilities in corporate governance and interfacing with operational management. Typical examples include controlling and reporting, achieving milestones set out in the investment contract, and securing additional financing rounds.