Services

Situation

• You are planning to sell your company or a business unit e.g. as part of your succession plan (exit). Possible buyer groups are strategic buyers, financial investors/family offices or the management (MBO/MBI)
• You are looking for an investor/co-shareholder that supports you e.g. in your growth and expansion plans or in the restructuring of the existing shareholder structure (partial exit)
• You are in a crisis or special situation and need a swift, discreet sale process (restructuring)
• Your goals are:
  • Maximizing value and price
  • Flawless and silent transaction process without “surprises”
  • Selling your company to the “right” buyer who continues to operate the business in line with your principles (or finding a co-shareholder that “fits” and fully supports your strategy)

What we do

As a specialist for personal M&A advise for owners and investors of owner-managed and family-owned companies we bring your transaction to a success. REDHILL Corporate Finance develops a tailor-made procedure and takes over the full coordination and responsibility for the process. This includes e.g. the following work steps:

• Professional preparation
  • Development of a sales strategy, equity story and information memorandum
  • Buyers research: Development of a long and short list of potential buyers
• Execution - creation of a competitive auction process
  • Personal approach of potential buyers
  • Solicitation of indicative offers (“letter of interest”)
  • Preparation and coordination of management presentation and due diligence
  • Solicitation of "letter of intent" or "term sheet"
  • Management of SPA negotiations
• Signing and closing

How we bring value

• Experience factor
  • Personal, independent M&A advise through the founder with a maximum of experience in the sale of Mittelstand companies
  • Deep understanding for the special psychology and specific requirements for a small and mid-cap transactions
• Maximization of purchase price and sale conditions
  • High expertise in developing consistent “equity stories”
  • Extensive buyer research based on industry reach and international network
  • High expertise in structuring efficient, competitive auction processes
• Process and transaction reliability
  • Excellent preparation of all steps
  • High efficiency through detailed, transaction oriented process management
  • Specialist for running processes with a limited number of buyers (if appropriate)

Situation

• You are planning growth through acquisitions and are looking for professional M&A support in:
  • Developing an acquisition strategy
  • Identification of suitable targets in the Mittelstand
  • Managing the acquisition process
• You would like to acquire a specific company and are looking for an entrepreneurial adviser helping you to successfully close the transaction through:
  • Managing the acquisition process
  • Positioning yourself via the seller in the best possible way
  • Finding an acquisition financing

What we do

REDHILL Corporate Finance brings acquisitions in the small and mid-cap market to success. We fully manage your acquisition process including the following work steps:

• Target identification
  • Development of an acquisition strategy
  • Comprehensive, structured market research
  • Identification and prioritization of potential targets, development of „Long List“ and approved „Short List“
• Approach
  • Development of a communication plan and individual strategy to approach the candidates
  • Initiation of contact with potential targets
  • Assessment of “strategic fit” and potential synergies
  • Target valuation/assessment of appropriate price range
• Due Diligence, negotiations
  • Coordination of due diligence and transaction team
  • Drafting and negotiation of offers ("letter of interest", "letter of intent", "term sheet", "final offer", etc.)
• Intensive internal support
  • Documentation of all process steps
  • Preparation of documents for the internal decision-making process
  • Financing advisory
    • Assisting in developing and executing appropriate financing strategies, if required
    • Identification of financing sources
    • Development of necessary documentation
    • Negotiation of financing terms

How we bring value

• Professional screening of the market for acquisition opportunities. Excellent network to Mittelstand companies and owner-run/family-owned businesses
• Experience factor. Personal independent M&A advise through the founder with a maximum of experience in the acquisition of Mittelstand companies
  • Proven “door opener" when approaching and communicating with potential targets
  • In-depth understanding of the psychology of the German “Mittelstand“
  • Best possible positioning of the buyer vis-a-vis the sellers
  • Handling of all details to navigate the transaction to a successful closing
• Professional valuation. Long-term experience and creativity to design the optimal deal structure and in negotiation of purchase price and major contract terms
• Efficient and transaction oriented process management
• If required, extensive network to banks for acquisition financing in the small and middle-market

Situation

• You are the manager (management team) of a small or medium-sized company (or of a business unit/portfolio company of large corporation) and would like to acquire the business
• You are an external manager and would like to acquire a specific company (that you have already identified)
• You need support in structuring and managing the MBO/MBI process, e.g. developing a financing concept, arrangement of equity/ debt and negotiating with the current owners, investors and banks

What we do

The team of REDHILL Corporate Finance has long-term experience advising managers in MBO/MBI situations. We support you with:

• Assessment of realizability, valuation and development of a tailor-made transaction and financing concept
• Financing advisory: identification of suitable partners to finance the MBO/MBI with debt and equity
  • Financial investors, family offices
  • Banks focused on small and mid-sized businesses
  • Public subsidies and grants
• Preparation of a professional documentation including business plan as a basis for all negotiations with investors and banks
• Coordination and management of all negotiations with the current owners, investors and banks

How we bring value

• Experience factor. Long term experience in developing and realizing MBO/MBI concepts
• Extensive expertise in finding the "right" investor with the best fit for the management
  • Deep knowledge of the financial community and excellent access to the relevant investors MBOs/MBIs in the small and mid-cap segment, in particular private equity firms, family offices and private investors
  • Broad experience in assessing the best partner through a limited, competitive process
• Extensive network to banks for acquisition financing in the small and middle-market
• Comprehensive support in all details
  • Experience and sensibility in negotiations with the current owners/ sellers
  • Competitive process amongst bank to optimize financing
  • Deep experience in negotiating all aspects of management terms and shareholder agreement with professional investors

Advisory in the following situations:

• A sale is foreseeable but not yet immediately planned (e.g. 1–3 years out)

• A company should be deliberately prepared for a future exit

Services

• Ongoing support to increase value and readiness for sale
• Early identification and resolution of risks that could reduce a future valuation
• Seamless transition into the actual sale process at the desired time

A single point of contact throughout – a continuous partnership rather than a one-off engagement.

Advisory in the following situations:

• A purchase offer has been received and its fairness needs to be assessed independently
• An investor or competitor has expressed unsolicited interest

Services

• Assessment of the offer using standard market valuation methods and comparable transactions
• Assessment of negotiating room and alternative courses of action
• Clear, independent recommendation on next steps

Neutral assessment, with no interest in the process outcome – fast orientation in an important decision situation.